10-KPeriod: FY2023

ADVANCED MICRO DEVICES INC Annual Report, Year Ended Dec 30, 2023

Filed January 31, 2024For Securities:AMD

Summary

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 billion, 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.

Financial Highlights

55 data points
Beta

Revenue

$22.68B

46.1% Gross Margin

Net Income

$854.00M

3.8% Net Margin

EPS (Diluted)

$0.53

Total Assets

$67.89B

Cash & Equivalents

$3.93B

Free Cash Flow

$1.12B

Financial Statements
Beta
Revenue$22.68B
Cost of Revenue$12.22B
Gross Profit$10.46B
R&D Expenses$5.87B
SG&A Expenses$2.32B
Operating Expenses$10.06B
Operating Income$401.00M
Interest Expense$106.00M
Net Income$854.00M
EPS (Basic)$0.53
EPS (Diluted)$0.53
Shares Outstanding (Basic)1.61B
Shares Outstanding (Diluted)1.63B

Key Highlights

  • 1AMD reported net revenue of $22.7 billion for the fiscal year 2023, a 4% decrease compared to $23.6 billion in 2022.
  • 2The Data Center segment revenue increased by 7% to $6.5 billion, driven by higher sales of Instinct GPUs and 4th Gen EPYC CPUs.
  • 3Client 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.
  • 4Gaming segment revenue decreased by 9% to $6.2 billion, mainly due to lower semi-custom product sales.
  • 5Embedded segment revenue increased by 17% to $5.3 billion, benefiting from the full year inclusion of Xilinx's results.
  • 6The company significantly increased R&D expenses by 17% to $5.9 billion, largely driven by increased investments in AI and headcount growth.
  • 7AMD has an available stock repurchase program of up to $12 billion, with $5.6 billion remaining as of the filing date.

Frequently Asked Questions

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.

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.

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.

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.