01—Abstract
Summary
Summary of the 10-K filed February 3, 2022. Cited figures are marked; the original filing is the authoritative source.
Advanced Micro Devices, Inc. (AMD) demonstrated robust financial performance in its fiscal year ended December 25, 2021, with net revenue soaring to $16.4 billiona, a significant 68% increase year-over-year, driven by strong demand across its product portfolio.
The company reported improved gross margins of 48% and a substantial increase in operating income to $3.6 billionb. This growth was fueled by strong sales in both its Computing and Graphics segment and its Enterprise, Embedded and Semi-Custom segment, with notable contributions from Ryzen processors, Radeon graphics, and EPYC server processors. Looking ahead, AMD is progressing with its significant acquisition of Xilinx, Inc., expected to close in the first quarter of 2022, which aims to further enhance its high-performance computing capabilities.
The company also continues to invest heavily in research and development, focusing on next-generation CPU and GPU technologies, including advancements in energy efficiency and chiplet technology. AMD remains focused on innovation and market leadership, supported by a solid financial position and strategic investments in its supply chain.
02—Key points
Key Highlights
- Significant revenue growth: Net revenue increased by 68% to $16.4 billion in fiscal year 2021.
- Improved profitability: Gross margin improved to 48% from 45% in the prior year, with operating income rising to $3.6 billion.
- Strong segment performance: Both Computing and Graphics, and Enterprise, Embedded and Semi-Custom segments saw substantial revenue growth.
- Strategic acquisition: The acquisition of Xilinx, Inc. is on track for expected closure in Q1 2022, aiming to bolster AMD's high-performance computing offerings.
- Continued R&D investment: Significant investment in product development, focusing on next-generation CPUs and GPUs, including energy efficiency and chiplet technology.
- Shareholder returns: Announced a $4 billion stock repurchase program, with $1.8 billion executed in FY2021.
- Supply chain management: Strategic investments made to secure capacity amidst global supply chain challenges.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Advanced Micro Devices Inc kept $0.19.
- Revenue$16.43B100.0%
- Cost of revenue−$8.51B51.8%
- Gross profit$7.93B48.2%
- Operating costs−$4.28B26.0%
- Operating income$3.65B22.2%
- Interest, other & tax−$486.0M3.0%
- Net income$3.16B19.2%
Where FY2021 revenue went
$16.43B- Cost of revenue: $8.51B, 52% of revenue
- Net income: $3.16B, 19% of revenue
- R&D: $2.85B, 17% of revenue
- SG&A: $1.45B, 8.8% of revenue
- Interest, other & tax: $486.0M, 3.0% of revenue
Kept 19% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 3, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $16.43B$9.76B | +68.3% |
| Cost of Revenue | $8.51B$5.42B | +57.0% |
| Gross Profit | $7.93B$4.35B | +82.4% |
| R&D Expenses | $2.85B$1.98B | +43.5% |
| SG&A Expenses | $1.45B$995.00M | +45.5% |
| Operating Income | $3.65B$1.37B | +166.5% |
| Interest Expense | $34.00M$47.00M | −27.7% |
| Net Income | $3.16B$2.49B | +27.0% |
| EPS (Basic) | $2.61$2.10 | +24.3% |
| EPS (Diluted) | $2.57$2.06 | +24.8% |
| Shares Outstanding (Basic) | 1.21B1.18B | +2.4% |
| Shares Outstanding (Diluted) | 1.23B1.21B | +1.8% |
05—Questions
Frequently Asked Questions
What were the key drivers of AMD's revenue growth in 2021?
AMD's revenue growth in 2021 was driven by strong demand for its high-performance products, including Ryzen mobile processors, Radeon graphics cards, and EPYC server processors. The company experienced a significant increase in average selling prices across its Computing and Graphics segment and a substantial surge in sales for its semi-custom products and EPYC server processors within the Enterprise, Embedded and Semi-Custom segment.
What is the status of the Xilinx acquisition?
AMD entered into a definitive agreement to acquire Xilinx, Inc. in an all-stock transaction valued at $35 billion. Both AMD's and Xilinx's stockholders have approved the merger. The transaction is subject to customary closing conditions, including regulatory approval, and is currently expected to close in the first quarter of 2022.
How is AMD managing supply chain constraints?
AMD has taken strategic actions to maintain a stable supply of materials and meet production requirements amidst global supply chain disruptions. This includes making strategic investments through long-term purchase commitments and prepayment arrangements to secure additional capacity, such as amending its Wafer Supply Agreement with GLOBALFOUNDRIES Inc. to ensure capacity allocation through 2025.
What is AMD's approach to research and development (R&D)?
AMD continues to heavily invest in R&D, focusing on improving product performance and enhancing design. Key areas of focus include developing next-generation CPU and GPU IP, improving energy efficiency (targeting a 30x increase by 2025 for EPYC CPUs and Instinct GPU accelerators), advancing chiplet technology, and innovating in packaging technology. The company is also focusing on high-performance computing (HPC) and machine intelligence.
06—Continue