Susquehanna Reports AMD’s MI308 GPU Sales Increase Revenue by $800 Million in H2 2025 Forecast; Gaming Segment Sees Double-Digit Growth in Q2

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The Impact of Eased Restrictions on AMD’s Performance

AMD has positioned itself as a significant beneficiary of the recent policy adjustments by the Trump administration, which have relaxed restrictions on semiconductor sales to China. According to an analysis by Susquehanna analyst Christopher Rolland, this change enables AMD to sell its previously restricted inventory of MI308 GPUs at “near-zero cost and high gross margin.”

Upcoming Earnings Report and Analyst Expectations

AMD is set to release its earnings for the second quarter of 2025 on August 5th. Rolland anticipates that AMD will report results that are “in line to slightly better”than expectations, particularly in the PC business. This optimism is partly supported by Intel’s recent insights on sustained demand influenced by tariffs in the second quarter.

Revenue Projections and GPU Sales

Rolland underscores the significance of AMD’s renewed capability to distribute its MI308 GPUs in light of the alteration in export regulations. Initially, AMD had projected a $1.5 billion revenue loss due to these restrictions. Nevertheless, with the new allowance, Rolland has revised his estimates, adding back approximately $800 million in expected revenue for the latter half of 2025. This adjustment, however, comes with caution regarding the amount of inventory that was ultimately scrapped compared to that which could still be sold by year-end.

Financial Insights and Gross Margin Expectations

While AMD planned to write off $800 million related to its MI308 inventory, the ability to sell these GPUs now carries favorable financial implications. This could lead to a significant boost in gross margins for the second half of 2025. Rolland projects a 1% increase in AMD’s gross margin, raising it to 52.8% overall for the year.

Increased Shipment Estimates for MI300 GPUs

Additionally, Rolland has revised his shipment estimates for AMD’s latest MI300 GPUs, forecasting revenue of $7 billion from these products, a notable increase from his prior estimate of $6.2 billion.

Advancements in AI Technology

AMD recently unveiled its highly anticipated MI350 series GPUs, which utilize the fourth-generation Instinct architecture. Available in the third quarter of 2025, these GPUs promise a remarkable 4x increase in AI compute power and a staggering 35x boost in inference capacity.

AMD’s Market Position and Future Growth

On the server side, the strength of AMD’s EPYC processors continues to grow, driven by gaining market share. According to Susquehanna’s Q2 2025 PC-SIGnals data, AMD has made “modest”gains in laptop processor market share, although it experienced a slight decline in the desktop sector. Meanwhile, the gaming segment has shown robust growth, anticipated to increase by double digits on a quarter-over-quarter basis in Q2.

Stock Performance Overview

Currently, AMD shares have seen a slight decrease of around 1% in pre-market trading. Nonetheless, the stock has surged by an impressive 25% over the past month and is nearing a 50% increase year-to-date.

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