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| 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.