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**Table of Contents** *generated with [DocToc](https://github.com/thlorenz/doctoc)*
- [Example: Using LLMs to Analyze Key Metric Changes and Their Drivers in Earnings Call Transcripts](#example-using-llms-to-analyze-key-metric-changes-and-their-drivers-in-earnings-call-transcripts)
- [Prerequisites](#prerequisites)
- [Example Code](#example-code)
- [Code](#code)
- [The Large Model’s Thought Process](#the-large-models-thought-process)
- [The Large Model’s Reasoning](#the-large-models-reasoning)
- [Output Result](#output-result)
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# Example: Using LLMs to Analyze Key Metric Changes and Their Drivers in Earnings Call Transcripts
> [!NOTE]
> Generally speaking, during an earnings call, management will disclose the key financial changes for the quarter and the reasons behind them. These changes are also frequently the focus of repeated questioning and attention from analysts during the Q&A session. Manually reading through the lengthy transcript to analyze these changes and their causes can be very time-consuming.
>
> This document introduces on how to leverage Large Language Models (LLMs) to analyze these changes and their root causes. In contrast, having an LLM perform the same task takes only tens of seconds and provides a clear, traceable analysis process for your review.
## Prerequisites
To run this example, you need:
1. An OpenAI-compatible API key (`OPEN_AI_API_KEY`)
2. A LLM model with a function call tools capability.
3. A LLM model with a thinking capability.
> [!TIP]
> Our tests were conducted using the [Qwen/Qwen3-Omni-30B-A3B-Thinking](https://huggingface.co/Qwen/Qwen3-Omni-30B-A3B-Thinking) model, achieving over 99% recall and 100% accuracy.
>
> For optimal results, it is recommended to use large language models with large parameters.
## Example Code
### Code
```python
from openai import OpenAI
from defeatbeta_api.data.ticker import Ticker
from defeatbeta_api.client.openai_conf import OpenAIConfiguration
# Initialize the Ticker
ticker = Ticker("AMD")
# Fetch earnings call transcripts
transcripts = ticker.earning_call_transcripts()
# Configure the OpenAI client
llm = OpenAI(
api_key="OPEN_AI_API_KEY", # Replace with your OPEN_AI_API_KEY
base_url="OPEN_AI_API_END_POINT" # Replace with your OPEN_AI_API_END_POINT
)
# analyzes key quarterly financial changes and their causes for Q2 2025 with llm
res = transcripts.analyze_financial_metrics_change_for_this_quarter_with_ai(
2025,
2,
llm,
OpenAIConfiguration(model='Qwen/Qwen3-Omni-30B-A3B-Thinking'))
print(res.to_string())
```
---
### The Large Model’s Thought Process
---
### The Large Model’s Reasoning
```text
╭───────────────────────────────────────────────────────────────────────────────────────────────── 🧠 Finish Think ──────────────────────────────────────────────────────────────────────────────────────────────────╮
│ │
│ │
│ Okay, let's tackle this problem. So, the user wants me to analyze every sentence in the provided earnings call transcripts and extract key sentences that describe financial metric changes compared to previous │
│ periods. The tool provided is extract_sentences, which requires identifying sentences with figures that changed year-over-year (YoY) or quarter-over-quarter (QoQ). │
│ │
│ First, I need to go through each paragraph and check each sentence for financial metrics. Let me start by looking at the transcript structure. The transcript is divided into paragraphs with speakers, and each │
│ paragraph has multiple sentences. │
│ │
│ Let me start with paragraph 1. The operator is welcoming, so probably no financial data here. Paragraph 2: Matthew Ramsay mentions the press release and non-GAAP measures, but no actual numbers yet. Then Lisa │
│ Su's part in paragraph 3 is where the real financials start. │
│ │
│ Looking at Lisa Su's sentences: "Second quarter revenue increased 32% year-over-year to a record $7.7 billion..." That's a YoY increase. So that's a key sentence. Also, "Excluding the $800 million inventory │
│ write-down... gross margin was 54%..." Wait, but the write-down is a charge, so the actual gross margin excluding that is 54%, but the reported gross margin might be lower. However, the sentence says "gross │
│ margin was 54%", so that's a factual figure. But need to check if it's actual or projected. Since it's the second quarter results, it's factual. │
│ │
│ Then she mentions Data Center segment revenue increased 14% YoY to $3.2 billion. That's another key sentence. Also, "Revenue declined year-over-year as U.S. export restrictions effectively eliminated MI308 │
│ sales to China..." So revenue decline YoY for Data Center AI business. │
│ │
│ In the Client and Gaming section: "segment revenue increased 69% year-over-year to $3.6 billion..." That's a YoY increase. Then "Client revenue increased 67% year-over-year to $2.5 billion..." Another YoY │
│ figure. │
│ │
│ Embedded segment: "Revenue decreased 4% year-over-year to $824 million." So a YoY decrease. │
│ │
│ Moving to Jean Hu's part in paragraph 4: "We delivered record revenue of $7.7 billion, exceeding the middle point of our guidance, up 32% year-over-year..." Again, same as Lisa's statement. Then "Revenue │
│ increased 3% sequentially due to strong growth in the Client and the Gaming segment, partially offset by the Data Center revenue decrease due to export controls." So sequential increase here. │
│ │
│ Gross margin was 43%, down 10 points from 53% a year ago. So YoY decrease. But the note says excluding the $800 million charge, it would have been 54%. So the actual reported gross margin is 43%, which is a │
│ factual figure. │
│ │
│ Operating expenses increased 32% YoY. Operating income was $897 million, 12% margin vs $1.3 billion or 22% a year ago. So YoY changes in operating income and margin. │
│ │
│ Then segment details: Data Center revenue $3.2 billion up 14% YoY. Client and Gaming revenue $3.6 billion up 69% YoY. Embedded revenue $824 million down 4% YoY. │
│ │
│ Jean also mentions third quarter outlook: "revenue to be approximately $8.7 billion, plus or minus $300 million. The midpoint of our guidance represents approximately 28% year-over-year revenue growth..." So │
│ this is a projection, so is_factual would be N. But the user's tool says to return "Y" if factual (already occurred), "N" otherwise. So the guidance is future, so is_factual is N. │
│ │
│ Wait, the user's instruction says: "Return 'Y' if the content of `sentence` is factual (already occurred), and 'N' otherwise (for projections, guidance, expectation or forecasts)." │
│ │
│ So for the third quarter guidance, it's a forecast, so is_factual is N. But the actual second quarter results are factual. │
│ │
│ Let me check all sentences again for factual vs. projected. │
│ │
│ For example, "We expect Instinct revenue to grow year-over-year in the third quarter..." is a projection, so is_factual N. │
│ │
│ But "Second quarter revenue increased 32% year-over-year to a record $7.7 billion" is factual, so Y. │
│ │
│ So need to go through each sentence and check if it's a past result (factual) or future projection. │
│ │
│ Let me list all possible sentences: │
│ │
│ From Lisa Su: │
│ │
│ - "Second quarter revenue increased 32% year-over-year to a record $7.7 billion, and we delivered over $1 billion in free cash flow." → factual, YoY increase. │
│ │
│ - "Excluding the $800 million inventory write-down related to data center AI export controls, gross margin was 54%, marking our sixth consecutive quarter of year-over-year margin expansion led by a richer │
│ product mix." → factual, YoY margin expansion. │
│ │
│ - "Data Center segment revenue increased 14% year-over-year to $3.2 billion." → factual. │
│ │
│ - "Revenue declined year-over-year as U.S. export restrictions effectively eliminated MI308 sales to China..." → factual. │
│ │
│ - "Client and Gaming, segment revenue increased 69% year-over-year to $3.6 billion..." → factual. │
│ │
│ - "Client revenue increased 67% year-over-year to $2.5 billion..." → factual. │
│ │
│ - "In Gaming, revenue increased 73% year-over-year to $1.1 billion." → factual. │
│ │
│ - "Embedded segment revenue decreased 4% year-over-year to $824 million." → factual. │
│ │
│ From Jean Hu: │
│ │
│ - "We delivered record revenue of $7.7 billion, exceeding the middle point of our guidance, up 32% year-over-year..." → factual. │
│ │
│ - "Revenue increased 3% sequentially due to strong growth in the Client and the Gaming segment, partially offset by the Data Center revenue decrease due to export controls." → factual (sequential change). │
│ │
│ - "Gross margin was 43%, down 10 points from 53% a year ago." → factual. │
│ │
│ - "Operating expenses were approximately $2.4 billion, an increase of 32% year-over-year..." → factual. │
│ │
│ - "Operating income was $897 million, representing a 12% operating margin compared to $1.3 billion or 22% a year ago." → factual. │
│ │
│ - "Diluted earnings per share were $0.48 compared to $0.69 a year ago." → factual. │
│ │
│ - "Data Center segment revenue was $3.2 billion, up 14% year-over-year..." → factual. │
│ │
│ - "On a sequential basis, Data Center revenue decreased 12% due to the impact of the export controls on MI308." → factual. │
│ │
│ - "Client and Gaming segment revenue was $3.6 billion, up 69% year-over-year and 20% sequentially..." → factual. │
│ │
│ - "Client revenue was a record of $2.5 billion, up 67% year-over-year..." → factual. │
│ │
│ - "Gaming revenue rose to $1.1 billion, up 73% year-over-year..." → factual. │
│ │
│ - "Embedded segment revenue was $824 million, down 4% year-over-year and flat sequentially..." → factual. │
│ │
│ - "For the third quarter of 2025, we expect revenue to be approximately $8.7 billion, plus or minus $300 million." → projection, so is_factual N. │
│ │
│ - "The midpoint of our guidance represents approximately 28% year-over-year revenue growth..." → projection. │
│ │
│ - "Sequentially, we expect revenue to grow by approximately 13%..." → projection. │
│ │
│ - "We expect third quarter non-GAAP gross margin to be approximately 54%..." → projection. │
│ │
│ So the key sentences are those that report actual results (factual) with YoY or QoQ changes. The guidance is not factual, so those sentences should be excluded. │
│ │
│ Now, need to check each sentence in the transcript for these metrics. Let's go through each paragraph. │
│ │
│ Paragraph 3 (Lisa Su): │
│ │
│ - "Second quarter revenue increased 32% year-over-year to a record $7.7 billion, and we delivered over $1 billion in free cash flow." → key sentence. │
│ │
│ - "Excluding the $800 million inventory write-down related to data center AI export controls, gross margin was 54%, marking our sixth consecutive quarter of year-over-year margin expansion led by a richer │
│ product mix." → key sentence. │
│ │
│ - "Data Center segment revenue increased 14% year-over-year to $3.2 billion." → key. │
│ │
│ - "Revenue declined year-over-year as U.S. export restrictions effectively eliminated MI308 sales to China..." → key (YoY decline). │
│ │
│ - "Client and Gaming, segment revenue increased 69% year-over-year to $3.6 billion..." → key. │
│ │
│ - "Client revenue increased 67% year-over-year to $2.5 billion..." → key. │
│ │
│ - "In Gaming, revenue increased 73% year-over-year to $1.1 billion." → key. │
│ │
│ - "Embedded segment revenue decreased 4% year-over-year to $824 million." → key. │
│ │
│ Paragraph 4 (Jean Hu): │
│ │
│ - "We delivered record revenue of $7.7 billion, exceeding the middle point of our guidance, up 32% year-over-year..." → key. │
│ │
│ - "Revenue increased 3% sequentially due to strong growth in the Client and the Gaming segment, partially offset by the Data Center revenue decrease due to export controls." → key (sequential). │
│ │
│ - "Gross margin was 43%, down 10 points from 53% a year ago." → key. │
│ │
│ - "Operating expenses were approximately $2.4 billion, an increase of 32% year-over-year..." → key. │
│ │
│ - "Operating income was $897 million, representing a 12% operating margin compared to $1.3 billion or 22% a year ago." → key. │
│ │
│ - "Diluted earnings per share were $0.48 compared to $0.69 a year ago." → key. │
│ │
│ - "Data Center segment revenue was $3.2 billion, up 14% year-over-year..." → key. │
│ │
│ - "On a sequential basis, Data Center revenue decreased 12% due to the impact of the export controls on MI308." → key. │
│ │
│ - "Client and Gaming segment revenue was $3.6 billion, up 69% year-over-year and 20% sequentially..." → key. │
│ │
│ - "Client revenue was a record of $2.5 billion, up 67% year-over-year..." → key. │
│ │
│ - "Gaming revenue rose to $1.1 billion, up 73% year-over-year..." → key. │
│ │
│ - "Embedded segment revenue was $824 million, down 4% year-over-year and flat sequentially..." → key. │
│ │
│ Now, check if these sentences are explicitly stating the change (YoY or QoQ) with figures. For example, "up 32% year-over-year" is clear. │
│ │
│ Also, need to check if the sentence is factual. All these are reporting actual results from the second quarter, so is_factual is Y. │
│ │
│ Now, for each of these sentences, extract the required fields: │
│ │
│ - sentence: the exact sentence. │
│ │
│ - speaker: Lisa Su or Jean Hu. │
│ │
│ - paragraph_number: the paragraph number. │
│ │
│ - is_factual: Y. │
│ │
│ - short_summary: a brief summary of the sentence. │
│ │
│ - direction: up, down, unchanged. │
│ │
│ - reason: derived from the transcript, using management's own wording. │
│ │
│ Let's go through each key sentence: │
│ │
│ 1. "Second quarter revenue increased 32% year-over-year to a record $7.7 billion, and we delivered over $1 billion in free cash flow." │
│ │
│ - speaker: Lisa T. Su │
│ │
│ - paragraph_number: 3 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Revenue up 32% YoY to $7.7B, $1B+ free cash flow. │
│ │
│ - direction: up │
│ │
│ - reason: "strong momentum across our business" (from the transcript, but need to check exact wording. The reason should be from management's own words. The sentence says "strong momentum across our business" │
│ but the reason for the increase is not explicitly stated here. Wait, the reason should be derived from the full transcript. Let me check the context. │
│ │
│ In the transcript, Lisa says: "We delivered very strong second quarter results, with revenue exceeding the midpoint of guidance as higher EPYC and Ryzen processor sales more than offset headwinds from export │
│ controls that impacted Instinct sales." So the reason for the revenue increase is higher EPYC and Ryzen sales offsetting export controls. But the specific sentence here is about the revenue increase, so the │
│ reason would be "higher EPYC and Ryzen processor sales more than offset headwinds from export controls". │
│ │
│ But the tool says: "The reason should be derived from the full transcript and use management’s own wording. If management does not mention any reason, return an empty string." │
│ │
│ So for this sentence, the reason is "higher EPYC and Ryzen processor sales more than offset headwinds from export controls". │
│ │
│ 2. "Excluding the $800 million inventory write-down related to data center AI export controls, gross margin was 54%, marking our sixth consecutive quarter of year-over-year margin expansion led by a richer │
│ product mix." │
│ │
│ - speaker: Lisa T. Su │
│ │
│ - paragraph_number: 3 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Gross margin 54% excluding $800M write-down, YoY expansion. │
│ │
│ - direction: up (since it's a margin expansion) │
│ │
│ - reason: "led by a richer product mix" │
│ │
│ 3. "Data Center segment revenue increased 14% year-over-year to $3.2 billion." │
│ │
│ - speaker: Lisa T. Su │
│ │
│ - paragraph_number: 3 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Data Center revenue up 14% YoY to $3.2B. │
│ │
│ - direction: up │
│ │
│ - reason: "robust demand across our EPYC portfolio to power cloud and enterprise workloads and increasingly for emerging AI use cases." │
│ │
│ 4. "Revenue declined year-over-year as U.S. export restrictions effectively eliminated MI308 sales to China, and we began transitioning to our next-generation MI350 series accelerators." │
│ │
│ - speaker: Lisa T. Su │
│ │
│ - paragraph_number: 3 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Data Center AI revenue down YoY due to export restrictions. │
│ │
│ - direction: down │
│ │
│ - reason: "U.S. export restrictions effectively eliminated MI308 sales to China" │
│ │
│ 5. "Client and Gaming, segment revenue increased 69% year-over-year to $3.6 billion..." │
│ │
│ - speaker: Lisa T. Su │
│ │
│ - paragraph_number: 3 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Client and Gaming revenue up 69% YoY to $3.6B. │
│ │
│ - direction: up │
│ │
│ - reason: "driven by record client CPU sales and strong demand for our semi-custom game console SoCs and Radeon GPUs." │
│ │
│ 6. "Client revenue increased 67% year-over-year to $2.5 billion..." │
│ │
│ - speaker: Lisa T. Su │
│ │
│ - paragraph_number: 3 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Client revenue up 67% YoY to $2.5B. │
│ │
│ - direction: up │
│ │
│ - reason: "led by record desktop CPU sales" (from the transcript: "Demand for our latest-generation Ryzen 9000 series was strong, especially for our differentiated X3D processors.") │
│ │
│ 7. "In Gaming, revenue increased 73% year-over-year to $1.1 billion." │
│ │
│ - speaker: Lisa T. Su │
│ │
│ - paragraph_number: 3 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Gaming revenue up 73% YoY to $1.1B. │
│ │
│ - direction: up │
│ │
│ - reason: "Semi-custom revenue increased by a large double-digit percentage year-over-year as console inventories normalized and our customers began preparing for the holiday season." │
│ │
│ 8. "Embedded segment revenue decreased 4% year-over-year to $824 million." │
│ │
│ - speaker: Lisa T. Su │
│ │
│ - paragraph_number: 3 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Embedded revenue down 4% YoY to $824M. │
│ │
│ - direction: down │
│ │
│ - reason: "Demand continues recovering gradually with sell-through in the second quarter picking up as strength in most markets was offset by a few pockets of softness in inventory reduction actions largely │
│ with industrial customers." │
│ │
│ 9. "We delivered record revenue of $7.7 billion, exceeding the middle point of our guidance, up 32% year-over-year..." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Record revenue $7.7B, up 32% YoY. │
│ │
│ - direction: up │
│ │
│ - reason: "Record sales of Ryzen and EPYC processors and higher semi-custom shipments more than offset the impact of the U.S. export controls, restricting MI308 sales to China." │
│ │
│ 10. "Revenue increased 3% sequentially due to strong growth in the Client and the Gaming segment, partially offset by the Data Center revenue decrease due to export controls." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Revenue up 3% QoQ. │
│ │
│ - direction: up │
│ │
│ - reason: "strong growth in the Client and the Gaming segment, partially offset by the Data Center revenue decrease due to export controls." │
│ │
│ 11. "Gross margin was 43%, down 10 points from 53% a year ago." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Gross margin 43%, down 10 points YoY. │
│ │
│ - direction: down │
│ │
│ - reason: "The decrease was due to the $800 million inventory and related charges associated with the export restrictions." │
│ │
│ 12. "Operating expenses were approximately $2.4 billion, an increase of 32% year-over-year..." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Operating expenses up 32% YoY to $2.4B. │
│ │
│ - direction: up │
│ │
│ - reason: "as we continue to invest aggressively in go-to-market activities for revenue growth and in R&D to capitalize on significant future AI expansion opportunities." │
│ │
│ 13. "Operating income was $897 million, representing a 12% operating margin compared to $1.3 billion or 22% a year ago." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Operating income $897M, 12% margin vs 22% YoY. │
│ │
│ - direction: down │
│ │
│ - reason: "The decline was primarily due to the inventory and related charges." │
│ │
│ 14. "Diluted earnings per share were $0.48 compared to $0.69 a year ago." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: EPS $0.48 vs $0.69 YoY. │
│ │
│ - direction: down │
│ │
│ - reason: "The inventory and related charges reduced earnings per share by approximately $0.43." │
│ │
│ 15. "Data Center segment revenue was $3.2 billion, up 14% year-over-year..." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Data Center revenue $3.2B, up 14% YoY. │
│ │
│ - direction: up │
│ │
│ - reason: "driven by strong EPYC CPU revenue and share gains across both cloud and enterprise customers." │
│ │
│ 16. "On a sequential basis, Data Center revenue decreased 12% due to the impact of the export controls on MI308." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Data Center revenue down 12% QoQ. │
│ │
│ - direction: down │
│ │
│ - reason: "due to the impact of the export controls on MI308." │
│ │
│ 17. "Client and Gaming segment revenue was $3.6 billion, up 69% year-over-year and 20% sequentially..." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Client and Gaming revenue $3.6B, up 69% YoY and 20% QoQ. │
│ │
│ - direction: up │
│ │
│ - reason: "driven by richer Client product mix and operating leverage on higher revenue." │
│ │
│ 18. "Client revenue was a record of $2.5 billion, up 67% year-over-year..." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Client revenue $2.5B, up 67% YoY. │
│ │
│ - direction: up │
│ │
│ - reason: "driven by record sales of our Ryzen desktop CPUs and a richer product mix." │
│ │
│ 19. "Gaming revenue rose to $1.1 billion, up 73% year-over-year..." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Gaming revenue $1.1B, up 73% YoY. │
│ │
│ - direction: up │
│ │
│ - reason: "reflecting strong demand for our newly launched gaming GPUs and higher semi-custom revenue as inventory has now normalized and the customers prepare for the holiday season." │
│ │
│ 20. "Embedded segment revenue was $824 million, down 4% year-over-year and flat sequentially..." │
│ │
│ - speaker: Jean X. Hu │
│ │
│ - paragraph_number: 4 │
│ │
│ - is_factual: Y │
│ │
│ - short_summary: Embedded revenue $824M, down 4% YoY, flat QoQ. │
│ │
│ - direction: down │
│ │
│ - reason: "primarily due to product mix." │
│ │
│ Now, check if all these sentences are present in the transcript. Let me verify each. │
│ │
│ Yes, these are all in the provided transcript. Now, for each, fill in the required fields. │
│ │
│ Also, need to check if the direction is correct. For example, revenue up 32% YoY → direction up. Revenue down 4% YoY → direction down. │
│ │
│ The reason should be the exact wording from the transcript. For example, for the Data Center revenue increase, the reason is "driven by strong EPYC CPU revenue and share gains across both cloud and enterprise │
│ customers." │
│ │
│ Now, compiling all these into the key_sentences array as per the tool's requirements. │
│ │
│ │
╰────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────╯
```
-----
### Output Result
```text
symbol fiscal_year fiscal_quarter speaker paragraph_number summary sentence direction reason
0 AMD 2025 2 Lisa T. Su 3 Second quarter revenue increased 32% year-over-year to $7.7 billion Second quarter revenue increased 32% year-over-year to a record $7.7 billion up higher EPYC and Ryzen processor sales more than offset headwinds from export controls
1 AMD 2025 2 Lisa T. Su 3 Excluding the $800 million inventory write-down, gross margin was 54%, marking sixth consecutive quarter of year-over-year margin expansion Excluding the $800 million inventory write-down related to data center AI export controls, gross margin was 54%, marking our sixth consecutive quarter of year-over-year margin expansion up sixth consecutive quarter of year-over-year margin expansion
2 AMD 2025 2 Lisa T. Su 3 Data Center segment revenue increased 14% year-over-year to $3.2 billion Data Center segment revenue increased 14% year-over-year to $3.2 billion up strong EPYC CPU revenue and share gains across both cloud and enterprise customers
3 AMD 2025 2 Lisa T. Su 3 Client and Gaming segment revenue increased 69% year-over-year to $3.6 billion Client and Gaming segment revenue increased 69% year-over-year to $3.6 billion up record client CPU sales and strong demand for our PC and console gaming products
4 AMD 2025 2 Lisa T. Su 3 Client revenue increased 67% year-over-year to $2.5 billion Client revenue increased 67% year-over-year to $2.5 billion up record sales of our Ryzen desktop CPUs and a richer product mix
5 AMD 2025 2 Lisa T. Su 3 Gaming revenue increased 73% year-over-year to $1.1 billion In Gaming, revenue increased 73% year-over-year to $1.1 billion up strong demand for our newly launched gaming GPUs and higher semi-custom revenue as inventory has now normalized and the customers prepare for the holiday season
6 AMD 2025 2 Lisa T. Su 3 Embedded segment revenue decreased 4% year-over-year to $824 million Embedded segment revenue decreased 4% year-over-year to $824 million down Demand continues recovering gradually with sell-through in the second quarter picking up as strength in most markets was offset by a few pockets of softness in inventory reduction actions largely with industrial customers
7 AMD 2025 2 Jean X. Hu 4 Record revenue of $7.7 billion, exceeding the middle point of guidance, up 32% year-over-year We delivered record revenue of $7.7 billion, exceeding the middle point of our guidance, up 32% year-over-year up higher EPYC and Ryzen processor sales more than offset headwinds from export controls
8 AMD 2025 2 Jean X. Hu 4 Revenue increased 3% sequentially due to strong growth in Client and Gaming segments, partially offset by Data Center revenue decrease Revenue increased 3% sequentially due to strong growth in the Client and the Gaming segment, partially offset by the Data Center revenue decrease due to export controls. up strong growth in the Client and the Gaming segment, partially offset by the Data Center revenue decrease due to export controls
9 AMD 2025 2 Jean X. Hu 4 Gross margin was 43%, down 10 points from 53% a year ago Gross margin was 43%, down 10 points from 53% a year ago. down the $800 million inventory and related charges associated with the export restrictions
10 AMD 2025 2 Jean X. Hu 4 Excluding the $800 million inventory charge, non-GAAP gross margin would have been approximately 54% Excluding this charge, non-GAAP gross margin would have been approximately 54%. up excluding the $800 million inventory and related charges
11 AMD 2025 2 Jean X. Hu 4 Operating expenses were approximately $2.4 billion, an increase of 32% year-over-year Operating expenses were approximately $2.4 billion, an increase of 32% year-over-year up we continue to invest aggressively in go-to-market activities for revenue growth and in R&D to capitalize on significant future AI expansion opportunities
12 AMD 2025 2 Jean X. Hu 4 Operating income was $897 million, representing a 12% operating margin compared to $1.3 billion or 22% a year ago Operating income was $897 million, representing a 12% operating margin compared to $1.3 billion or 22% a year ago. down the inventory and related charges
13 AMD 2025 2 Jean X. Hu 4 Diluted earnings per share were $0.48 compared to $0.69 a year ago For the second quarter of 2025, diluted earnings per share were $0.48 compared to $0.69 a year ago. down The inventory and related charges reduced earnings per share by approximately $0.43.
14 AMD 2025 2 Jean X. Hu 4 Data Center segment revenue was $3.2 billion, up 14% year-over-year, driven by strong EPYC CPU revenue and share gains across both cloud and enterprise customers. Data Center segment revenue was $3.2 billion, up 14% year-over-year, driven by strong EPYC CPU revenue and share gains across both cloud and enterprise customers. up strong EPYC CPU revenue and share gains across both cloud and enterprise customers
15 AMD 2025 2 Jean X. Hu 4 Data Center revenue decreased 12% sequentially due to the impact of the export controls on MI308. On a sequential basis, Data Center revenue decreased 12% due to the impact of the export controls on MI308. down the impact of the export controls on MI308
16 AMD 2025 2 Jean X. Hu 4 Client and Gaming segment revenue was $3.6 billion, up 69% year-over-year and 20% sequentially, driven by record client CPU sales and strong demand for our PC and console gaming products. Client and Gaming segment revenue was $3.6 billion, up 69% year-over-year and 20% sequentially, driven by record client CPU sales and strong demand for our PC and console gaming products. up record client CPU sales and strong demand for our PC and console gaming products
17 AMD 2025 2 Jean X. Hu 4 Client business revenue was a record of $2.5 billion, up 67% year-over-year, driven by record sales of Ryzen desktop CPUs and a richer product mix. In the Client business, revenue was a record of $2.5 billion, up 67% year-over-year, driven by record sales of our Ryzen desktop CPUs and a richer product mix. up record sales of our Ryzen desktop CPUs and a richer product mix
18 AMD 2025 2 Jean X. Hu 4 Gaming revenue rose to $1.1 billion, up 73% year-over-year, reflecting strong demand for gaming GPUs and higher semi-custom revenue. Gaming revenue rose to $1.1 billion, up 73% year-over-year, reflecting strong demand for our newly launched gaming GPUs and higher semi-custom revenue as inventory has now normalized and the customers prepare for the holiday season. up strong demand for our newly launched gaming GPUs and higher semi-custom revenue as inventory has now normalized and the customers prepare for the holiday season
19 AMD 2025 2 Jean X. Hu 4 Embedded segment revenue was $824 million, down 4% year-over-year and flat sequentially as Embedded end market demand remains mixed. Embedded segment revenue was $824 million, down 4% year-over-year and flat sequentially as Embedded end market demand remains mixed. down Embedded end market demand remains mixed
20 AMD 2025 2 Jean X. Hu 4 We generated $1.5 billion in cash from operating activities and free cash flow was a record of $1.2 billion. We generated $1.5 billion in cash from operating activities of continuing operations, and free cash flow was a record of $1.2 billion. up record revenue
21 AMD 2025 2 Jean X. Hu 4 We returned $478 million to shareholders through share repurchase, resulting in $1.2 billion in share repurchases for the first half of 2025. We returned $478 million to shareholders through share repurchase, resulting in $1.2 billion in share repurchases for the first half of 2025. up record revenue
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