01—Abstract
Summary
Summary of the 10-K filed February 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Advanced Micro Devices, Inc. (AMD) reported a significant increase in revenue for the fiscal year ending December 28, 2024, with net revenue reaching $25.8 billiona, a 14% increase from the previous year.
This growth was primarily fueled by the robust performance of its Data Center segment, which saw a remarkable 94% surge in net revenue to $12.6 billionb, driven by strong demand for AMD Instinct GPUs and EPYC CPUs, especially from hyperscale cloud customers. The Client segment also demonstrated strong growth, with net revenue up 52% to $7.1 billion, largely due to increased sales of Ryzen processors. The company is strategically positioning itself as a leader in the AI era, evidenced by its accelerated roadmap for AI accelerators and significant investments in AI capabilities, including the acquisition of Silo AI Oy and the agreement to acquire ZT Group Int’l, Inc. (ZT Systems).
These moves are aimed at strengthening AMD's end-to-end AI solutions. While the Gaming and Embedded segments experienced declines, AMD's overall financial performance shows a clear uptrend, with operating income increasing substantially to $1.9 billionc from $401 million in the prior year. The company remains focused on innovation and expanding its high-performance computing portfolio to capitalize on the growing demand for AI and data-intensive workloads.
02—Key points
Key Highlights
- Net revenue grew 14% year-over-year to $25.8 billion, driven by strong performance in the Data Center and Client segments.
- Data Center segment revenue surged 94% to $12.6 billion, propelled by high demand for AMD Instinct GPUs and EPYC CPUs.
- Client segment revenue increased 52% to $7.1 billion, reflecting higher sales of Ryzen mobile and desktop processors.
- Operating income saw a substantial increase to $1.9 billion from $401 million in the prior year.
- AMD acquired Silo AI Oy to enhance its AI software capabilities and agreed to acquire ZT Systems to strengthen its data center AI infrastructure offerings.
- The company announced an accelerated roadmap for AI accelerators, aiming for an annual cadence of leadership AI solutions.
- Gaming and Embedded segments experienced revenue declines, primarily due to lower semi-custom product revenue and customer inventory normalization, respectively.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Advanced Micro Devices Inc kept $0.06.
- Revenue$25.79B100.0%
- Cost of revenue−$13.06B50.6%
- Gross profit$12.72B49.4%
- Operating costs−$10.82B42.0%
- Operating income$1.90B7.4%
- Interest, other & tax−$259.0M1.0%
- Net income$1.64B6.4%
Where FY2024 revenue went
$25.79B- Cost of revenue: $13.06B, 51% of revenue
- R&D: $6.46B, 25% of revenue
- Net income: $1.64B, 6.4% of revenue
- SG&A: $2.73B, 11% of revenue
- Other operating costs: $1.63B, 6.3% of revenue
- Interest, other & tax: $259.0M, 1.0% of revenue
Kept 6.4% as net incomeNet income $1.64B · 6.4%Interest, other & tax $259.0M · 1.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 5, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $25.79B$22.68B | +13.7% |
| Cost of Revenue | $13.06B$12.22B | +6.9% |
| Gross Profit | $12.72B$10.46B | +21.7% |
| R&D Expenses | $6.46B$5.87B | +9.9% |
| SG&A Expenses | $2.73B$2.32B | +18.0% |
| Operating Expenses | $10.82B$10.06B | +7.6% |
| Operating Income | $1.90B$401.00M | +373.8% |
| Interest Expense | $92.00M$106.00M | −13.2% |
| Net Income | $1.64B$854.00M | +92.2% |
| EPS (Basic) | $1.01$0.53 | +90.6% |
| EPS (Diluted) | $1.00$0.53 | +88.7% |
| Shares Outstanding (Basic) | 1.62B1.61B | +0.4% |
| Shares Outstanding (Diluted) | 1.64B1.63B | +0.7% |
05—Questions
Frequently Asked Questions
What were the key drivers of AMD's revenue growth in fiscal year 2024?
AMD's revenue growth in fiscal year 2024 was primarily driven by its Data Center segment, which saw a 94% increase in revenue due to strong demand for its AI accelerators (Instinct GPUs) and EPYC CPUs. The Client segment also contributed significantly with a 52% revenue increase, driven by higher sales of Ryzen processors.
How is AMD positioning itself for the AI market?
AMD is strategically focusing on AI by accelerating its AI accelerator roadmap to deliver annual leadership solutions. This includes the acquisition of Silo AI Oy to enhance AI software capabilities and the agreement to acquire ZT Systems to bolster its data center AI infrastructure. The company is also integrating AI capabilities, such as NPUs, into its Ryzen processors for AI PCs.
What is the outlook for AMD's Gaming and Embedded segments?
The Gaming segment experienced a significant revenue decline of 58%, mainly due to lower semi-custom product revenue. The Embedded segment saw a 33% decrease in revenue as customers normalized their inventory levels. While these segments faced headwinds, AMD's core growth drivers in Data Center and Client segments remain strong.
How has AMD's profitability improved?
AMD's profitability significantly improved, with operating income rising to $1.9 billion from $401 million in the prior year. This improvement is attributed to higher overall revenue, a favorable shift in revenue mix towards higher-margin Data Center and Client products, and an increase in gross margin to 49% from 46%.
06—Continue