“Looking ahead, we expect improving demand in the test and measurement, communications, and aerospace markets will drive a return to sequential growth in the second half of 2025.”

In context

“Embedded segment. Revenue decreased 4% year-over-year to $824 million. 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. We expanded our Embedded portfolio with the first production shipments of Spartan UltraScale+ FPGAs that deliver leadership performance and advanced security for cost-sensitive low-power applications. Adoption of our Versal adaptive SoCs continues expanding in high-end applications including next-generation robotaxi platforms developed by Bosch in Europe, where Versal serves as a high-performance controller, enabling real-time processing, security and encryption in fully electric automated vehicles. Looking ahead, we expect improving demand in the test and measurement, communications, and aerospace markets will drive a return to sequential growth in the second half of 2025. Longer term, design win momentum continues to build, tracking ahead of this point last year and putting us on pace to pass the record $14 billion in design wins we achieved in 2024. In summary, demand is very strong across our product portfolio, and we are well positioned to deliver significant growth in the second half of the year, led by the steep ramp of MI350 series accelerators and ongoing EPYC and Ryzen share gains. Our server and PC CPU businesses are accelerating, driven by growing demand for high-performance compute, sustained share gains, the strength of our product portfolio and expanded go-to-market investments. Our Embedded and Gaming businesses are returning to growth and are well positioned for long-term success, supported by strong design win momentum. And in AI, we are se”