01—Abstract
Summary
Summary of the 10-K filed January 31, 2024. Cited figures are marked; the original filing is the authoritative source.
Advanced Micro Devices, Inc. (AMD) filed its 10-K for the fiscal year ended December 29, 2023, presenting a comprehensive overview of its performance and strategic direction.
The company reported total net revenue of $22.7 billiona, a slight decrease of 4% year-over-year, attributed primarily to a decline in the Client segment due to lower processor sales and reduced unit shipments, as well as a decrease in the Gaming segment driven by lower semi-custom product sales. These decreases were partially offset by growth in the Embedded segment, bolstered by the full year inclusion of Xilinx, and a modest increase in the Data Center segment driven by higher sales of Instinct GPUs and EPYC CPUs. AMD's strategic focus remains on driving innovation in high-performance and adaptive computing, particularly with a significant emphasis on Artificial Intelligence (AI) capabilities across its product portfolio.
The company highlighted strong demand for its Data Center GPUs and 4th Gen EPYC CPUs, and announced advancements in its AI solutions, including the AMD Instinct MI300X accelerators. Despite a challenging market for PCs, AMD is positioning itself for future growth by investing heavily in R&D, especially in AI, and expanding its product offerings in the Data Center and Embedded segments.
02—Key points
Key Highlights
- AMD reported net revenue of $22.7 billion for the fiscal year 2023, a 4% decrease compared to $23.6 billion in 2022.
- The Data Center segment revenue increased by 7% to $6.5 billion, driven by higher sales of Instinct GPUs and 4th Gen EPYC CPUs.
- Client segment revenue decreased by 25% to $4.7 billion, primarily due to weaker PC market conditions and a decrease in average selling price and unit shipments.
- Gaming segment revenue decreased by 9% to $6.2 billion, mainly due to lower semi-custom product sales.
- Embedded segment revenue increased by 17% to $5.3 billion, benefiting from the full year inclusion of Xilinx's results.
- The company significantly increased R&D expenses by 17% to $5.9 billion, largely driven by increased investments in AI and headcount growth.
- AMD has an available stock repurchase program of up to $12 billion, with $5.6 billion remaining as of the filing date.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Advanced Micro Devices Inc kept $0.04.
- Revenue$22.68B100.0%
- Cost of revenue−$12.22B53.9%
- Gross profit$10.46B46.1%
- Operating costs−$10.06B44.4%
- Operating income$401.0M1.8%
- Interest, other & tax$453.0M2.0%
- Net income$854.0M3.8%
Where FY2023 revenue went
$22.68B- Cost of revenue: $12.22B, 54% of revenue
- R&D: $5.87B, 26% of revenue
- Operating income: $401.0M, 1.8% of revenue
- SG&A: $2.32B, 10% of revenue
- Other operating costs: $1.87B, 8.2% of revenue
Kept 1.8% as operating incomeOperating income $401.0M · 1.8%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed January 31, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $22.68B$23.60B | −3.9% |
| Cost of Revenue | $12.22B$13.00B | −6.0% |
| Gross Profit | $10.46B$10.60B | −1.3% |
| R&D Expenses | $5.87B$5.00B | +17.3% |
| SG&A Expenses | $2.32B$2.34B | −0.8% |
| Operating Expenses | $10.06B— | — |
| Operating Income | $401.00M$1.26B | −68.3% |
| Interest Expense | $106.00M$88.00M | +20.5% |
| Net Income | $854.00M$1.32B | −35.3% |
| EPS (Basic) | $0.53$0.85 | −37.6% |
| EPS (Diluted) | $0.53$0.84 | −36.9% |
| Shares Outstanding (Basic) | 1.61B1.56B | +3.4% |
| Shares Outstanding (Diluted) | 1.63B1.57B | +3.4% |
05—Questions
Frequently Asked Questions
What was AMD's overall financial performance in 2023?
AMD reported net revenue of $22.7 billion for the fiscal year ended December 29, 2023, which represents a 4% decrease compared to $23.6 billion in 2022. This decline was primarily due to a significant drop in the Client segment and a smaller decrease in the Gaming segment, partially offset by growth in the Embedded and Data Center segments.
How did AMD's different segments perform in 2023?
The Data Center segment saw a 7% revenue increase to $6.5 billion, driven by Instinct GPUs and EPYC CPUs. The Client segment experienced a 25% revenue decrease to $4.7 billion due to weak PC market conditions. The Gaming segment revenue declined by 9% to $6.2 billion, mainly from lower semi-custom product sales. The Embedded segment grew by 17% to $5.3 billion, largely due to the full year impact of the Xilinx acquisition.
What is AMD's strategic focus, particularly regarding Artificial Intelligence (AI)?
AMD is heavily focused on high-performance and adaptive computing, with a strong emphasis on AI. The company launched advanced AI accelerators like the Instinct MI300X and integrated CPU/GPU cores in the MI300A APU, aiming to deliver leadership performance for generative AI workloads. AMD is also investing in its ROCm open software platform and has made strategic acquisitions to enhance its AI software capabilities.
What is AMD's financial health in terms of cash and debt?
As of December 30, 2023, AMD had $5.8 billion in cash, cash equivalents, and short-term investments. The company's total debt principal stood at $2.5 billion. AMD believes its liquidity and capital resources are sufficient to fund operations and capital expenditures for the next 12 months and beyond.
06—Continue