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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
January 30, 2024
Date of Report (Date of earliest event reported)
amdlogo.jpg
ADVANCED MICRO DEVICES, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-07882
94-1692300
(State of
Incorporation)
(Commission
File Number)
(IRS Employer
Identification Number)

2485 Augustine Drive
Santa Clara, California 95054
(Address of principal executive offices) (Zip Code)
(408) 749-4000
(Registrant’s telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
 Name of each exchange on which registered
Common Stock, $0.01 par value
AMD
The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐






Item 2.02 Results of Operations and Financial Condition.
Item 7.01 Regulation FD Disclosure.
On January 30, 2024, Advanced Micro Devices, Inc. (the "Company") announced its financial position and results of operations as of and for its fiscal quarter and fiscal year ended December 30, 2023 in a press release that is attached hereto as Exhibit 99.1. Attached hereto as Exhibit 99.2 is a presentation regarding the Company's fiscal quarter and fiscal year ended December 30, 2023.
The Company will hold a conference call on January 30, 2024 at 2:00 p.m. PT (5:00 p.m. ET) to discuss its fiscal quarter and fiscal year ended December 30, 2023 financial results and forward-looking financial guidance.
To supplement the Company’s financial results presented on a U.S. Generally Accepted Accounting Principles (“GAAP”) basis, the Company’s earnings press release and presentation contains non-GAAP financial measures, including non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP earnings per share, Adjusted EBITDA and free cash flow. The Company uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2023, AMD used a non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments. The Company believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because the Company believes it assists investors in comparing the Company's performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance. The Company’s non-GAAP financial measures should be viewed in addition to and not as a substitute for or superior to the Company's reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the data tables at the end of the earnings press release and presentation.

The information in this report furnished pursuant to Items 2.02 and 7.01, including Exhibits 99.1 and 99.2 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or the Securities Act of 1933, as amended, if such subsequent filing specifically references the information furnished pursuant to Items 2.02 and 7.01 of this report.


Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.

EXHIBIT INDEX
Exhibit No.
Description
99.1
99.2
104Inline XBRL for the cover page of this Current Report on Form 8-K





SIGNATURE

Pursuant to the requirements of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:January 30, 2024
ADVANCED MICRO DEVICES, INC.
By:
/s/ Jean Hu
Name:
Jean Hu
Title:
Executive Vice President, Chief Financial Officer & Treasurer



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NEWS RELEASE
Media Contact:
Drew Prairie
AMD Communications
512-602-4425
drew.prairie@amd.com

Investor Contact:
Mitch Haws
AMD Investor Relations
408-749-3124
mitch.haws@amd.com

AMD Reports Fourth Quarter and Full Year 2023 Financial Results

SANTA CLARA, Calif. ― Jan. 30, 2024 ― AMD (NASDAQ:AMD) today announced revenue for the fourth quarter of 2023 of $6.2 billion, gross margin of 47%, operating income of $342 million, net income of $667 million and diluted earnings per share of $0.41. On a non-GAAP(*) basis, gross margin was 51%, operating income was $1.4 billion, net income was $1.2 billion and diluted earnings per share was $0.77.
For the full year 2023, the company reported revenue of $22.7 billion, gross margin of 46%, operating income of $401 million, net income of $854 million and diluted earnings per share of $0.53. On a non-GAAP(*) basis, gross margin was 50%, operating income was $4.9 billion, net income was $4.3 billion and diluted earnings per share was $2.65.
“We finished 2023 strong, with sequential and year-over-year revenue and earnings growth driven by record quarterly AMD Instinct GPU and EPYC CPU sales and higher AMD Ryzen processor sales,” said AMD Chair and CEO Dr. Lisa Su. “Demand for our high-performance data center product portfolio continues to accelerate, positioning us well to deliver strong annual growth in what is an incredibly exciting time as AI re-shapes virtually every part of the computing market.”
“AMD executed well in 2023 despite a mixed demand environment,” said AMD EVP, CFO and Treasurer Jean Hu. “We drove year-over-year revenue growth in our Data Center and Embedded segments and successfully launched our AMD Instinct MI300 GPUs positioning us for a strong product ramp in 2024.”







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GAAP Quarterly Financial Results
Q4 2023Q4 2022Y/YQ3 2023Q/Q
Revenue ($M)$6,168$5,599 Up 10% $5,800 Up 6%
Gross profit ($M)$2,911$2,403 Up 21% $2,747 Up 6%
Gross margin47%43% Up 4 ppts 47% Flat
Operating expenses ($M)$2,575$2,557Flat$2,533 Up 2%
Operating income (loss) ($M)$342$(149) Up 330% $224 Up 53%
Operating margin6%(3%) Up 9 ppts 4% Up 2 ppts
Net income ($M)$667$21Up 3,076%$299Up 123%
Diluted earnings per share$0.41$0.01Up 4,000%$0.18Up 128%

Non-GAAP(*) Quarterly Financial Results
Q4 2023Q4 2022Y/YQ3 2023Q/Q
Revenue ($M)$6,168$5,599 Up 10% $5,800 Up 6%
Gross profit ($M)$3,133$2,859 Up 10% $2,963 Up 6%
Gross margin51%51% Flat 51% Flat
Operating expenses ($M)$1,727$1,602 Up 8% $1,697 Up 2%
Operating income ($M)$1,412$1,262 Up 12% $1,276 Up 11%
Operating margin23%23% Flat 22% Up 1 ppt
Net income ($M)$1,249$1,113 Up 12% $1,135 Up 10%
Diluted earnings per share$0.77$0.69 Up 12% $0.70 Up 10%

Annual Financial Results
GAAP
Non-GAAP(*)
20232022Y/Y20232022Y/Y
Revenue ($M) $22,680  $23,601 Down 4% $22,680  $23,601 Down 4%
Gross profit ($M) $10,460  $10,603 Down 1% $11,436  $12,273 Down 7%
Gross margin %46%45%Up 1 ppt50%52%Down 2 ppts
Operating expenses ($M) $10,093  $9,441 Up 7% $6,616  $6,030 Up 10%
Operating income ($M) $401  $1,264 Down 68% $4,854  $6,345 Down 23%
Operating margin %2%5%Down 3 ppts21%27%Down 6 ppts
Net income ($M)$854 $1,320 Down 35% $4,302  $5,504 Down 22%
Diluted earnings per share
$0.53$0.84Down 37%$2.65$3.50Down 24%

Segment Summary
Data Center segment revenue in the quarter was $2.3 billion, up 38% year-over-year and 43% sequentially driven by strong growth in AMD Instinct™ GPUs and 4th Gen AMD EPYC™ CPUs.
For 2023, Data Center segment revenue was $6.5 billion, an increase of 7% compared to the prior year, driven by strong growth in AMD Instinct GPUs and 4th Gen AMD EPYC CPUs.
Client segment revenue was $1.5 billion, up 62% year-over-year driven primarily by an increase in AMD Ryzen™ 7000 Series CPU sales.
For 2023, Client segment revenue was $4.7 billion, down 25% compared to the prior year, due to a decline in the PC market.
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Gaming segment revenue was $1.4 billion, down 17% year-over-year and 9% sequentially, due to a decrease in semi-custom revenue, partially offset by an increase in AMD Radeon™ GPU sales.
For 2023, Gaming segment revenue was $6.2 billion, down 9% compared to the prior year primarily due to lower semi-custom sales.
Embedded segment revenue was $1.1 billion, down 24% year-over-year and 15% sequentially primarily due to customers reducing their inventory levels.
For 2023, Embedded segment revenue was $5.3 billion, up 17% compared to the prior year, primarily due to the inclusion of a full year of revenue related to the acquisition of Xilinx completed in February 2022.

Recent PR Highlights
AMD showcased growing momentum for advanced AMD technology-powered AI solutions from the data center to PCs:
AMD announced the general availability of AMD Instinct MI300X accelerators – with industry leading memory bandwidth performance for generative AI – as well as the AMD Instinct MI300A APU that combines AMD CDNA™ 3 and “Zen 4” chiplets to deliver breakthrough performance for HPC and AI workloads.
At the “Advancing AI” event, Microsoft, Meta, Oracle, Dell Technologies, HPE, Lenovo, Supermicro, Arista, Broadcom and Cisco showcased how they are leveraging AMD Instinct MI300X accelerators to power cloud and enterprise AI infrastructure.
AMD made significant progress expanding its AI software ecosystem, including unveiling the latest version of its open-source ROCm™ 6, software stack optimized for generative AI. AI ecosystem leaders including Databricks, Essential AI, Lamini and OpenAI are leveraging AMD Instinct accelerators to deliver differentiated AI solutions. AMD also extended support for ROCm software to include the AMD Radeon RX 7900 XT GPU, providing even more options for AI developers and researchers to use AMD hardware for their AI work.
AMD announced AMD Ryzen 8040 Series mobile processors with an integrated neural processing unit (NPU) on select models for AI. In 2022, AMD was the first company to introduce an x86 processor with an on-chip NPU to accelerate AI workloads with the AMD Ryzen 7040 series mobile processors. The updated NPU in the AMD Ryzen 8040 series delivers up to 1.6x more AI processing performance compared to AMD Ryzen 7040 Series mobile processors. Acer, ASUS, Lenovo, Razer and other PC OEMs introduced new laptops featuring AMD Ryzen 8040 Series processors, with the first systems on-track to go on sale this quarter.
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At CES 2024, AMD announced the AMD Ryzen 8000G Series desktop processors that are the first desktop PC processors in the industry to include a dedicated AI NPU to power AI capabilities on the PC.
At Microsoft Ignite, AMD and Microsoft highlighted how AMD Instinct MI300X accelerators, AMD EPYC CPUs and AMD Ryzen CPUs with AI engines are enabling new services and compute capabilities across cloud and generative AI, confidential computing, cloud computing and AI-capable PCs.
AMD showcased continued leadership in supercomputing:
Eni announced a new supercomputer, HPC6, powered by AMD EPYC CPUs and AMD Instinct GPUs. When completed, the HPC6 system will be one of the world’s most powerful supercomputers dedicated to industrial applications.
AMD EPYC processors and AMD Instinct accelerators now power 140 supercomputers on the latest Top500 list of the world’s fastest computers and eight of the top 10 most energy efficient supercomputers in the world based on the latest Green500 list. The Frontier supercomputer powered by AMD EPYC and AMD Instinct processors remains the fastest supercomputer in the world.
AMD extended its 3rd Gen AMD EPYC processor lineup with six new CPUs that deliver excellent value, performance, energy efficiency and security features for mainstream applications.
AMD introduced the AMD Radeon RX 7600 XT GPU, a high-performance graphics card designed to deliver immersive 1080P gaming experiences.
AMD introduced the AMD Versal™ AI Edge XA Series and AMD Ryzen Embedded V2000A devices designed for automotive focus segments including infotainment, advanced driver safety and autonomous driving.
AMD announced the AMD Ryzen Embedded 7000 Series processors, delivering leadership performance and advanced features for industrial and edge solutions. The launch was supported by a growing partner ecosystem, including integrated solutions from Advantech, ASRock and DFI.

Current Outlook
AMD’s outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.
For the first quarter of 2024, AMD expects revenue to be approximately $5.4 billion, plus or minus $300 million. Sequentially, AMD expects Data Center segment revenue to be flat, with a seasonal decline in server sales offset by a strong Data Center GPU ramp. Client, Embedded and Gaming
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segment sales are expected to decline sequentially, with semi-custom revenue expected to decline by a significant double-digit percentage. Non-GAAP gross margin is expected to be approximately 52%.

AMD Teleconference
AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its fourth quarter and full-year 2023 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com.



5


RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share data) (Unaudited)
Three Months EndedYear Ended
December 30,
2023
September 30,
2023
December 31,
2022
December 30,
2023
December 31,
2022
GAAP gross profit$2,911 $2,747 $2,403 $10,460 $10,603 
GAAP gross margin47 %47 %43 %46 %45 %
Stock-based compensation30 29 
Amortization of acquisition-related intangibles215 210 443 942 1,448 
Acquisition-related and other costs (1)
— 193 
Non-GAAP gross profit$3,133 $2,963 $2,859 $11,436 $12,273 
Non-GAAP gross margin51 %51 %51 %50 %52 %
GAAP operating expenses$2,575 $2,533 $2,557 $10,093 $9,441 
GAAP operating expenses/revenue %42 %44 %46 %45 %40 %
Stock-based compensation368 347 301 1,350 983 
Amortization of acquisition-related intangibles420 450 601 1,869 2,100 
Acquisition-related and other costs (1)
60 39 53 258 328 
Non-GAAP operating expenses$1,727 $1,697 $1,602 $6,616 $6,030 
Non-GAAP operating expenses/revenue %28 %29 %29 %29 %26 %
GAAP operating income (loss)$342 $224 $(149)$401 $1,264 
GAAP operating margin6 %4 %(3)%2 %5 %
Stock-based compensation374 353 310 1,380 1,012 
Amortization of acquisition-related intangibles635 660 1,044 2,811 3,548 
Acquisition-related and other costs (1)
61 39 57 262 521 
Non-GAAP operating income$1,412 $1,276 $1,262 $4,854 $6,345 
Non-GAAP operating margin23 %22 %23 %21 %27 %


Three Months EndedYear Ended
December 30,
2023
September 30, 2023December 31,
2022
December 30,
2023
December 31,
2022
GAAP net income / earnings per share$667 $0.41 $299 $0.18 $21 $0.01 $854 $0.53 $1,320 $0.84 
(Gains) losses on equity investments, net— (4)— — (1)— 62 0.04 
Stock-based compensation374 0.23 353 0.22 310 0.19 1,380 0.85 1,012 0.64 
Equity income in investee(6)— (3)— (3)— (16)(0.01)(14)(0.01)
Amortization of acquisition-related intangibles635 0.39 660 0.41 1,044 0.65 2,811 1.73 3,548 2.26 
Acquisition-related and other costs (1)
61 0.04 39 0.02 57 0.04 262 0.16 521 0.33 
Income tax provision(483)(0.30)(209)(0.13)(321)(0.20)(988)(0.61)(945)(0.60)
Non-GAAP net income / earnings per share$1,249 $0.77 $1,135 $0.70 $1,113 $0.69 $4,302 $2.65 $5,504 $3.50 
    

(1)Acquisition-related and other costs primarily comprised of transaction costs, purchase price adjustments for inventory, certain compensation charges, contract termination and workforce rebalancing charges.
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About AMD
For more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, Facebook and X pages.

Cautionary Statement

This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as AMD’s expectations regarding the demand for its high-performance data center product portfolio and AMD’s ability to deliver strong annual growth in 2024; expected future AI technology trends and developments; expected AMD Instinct™ MI 300 GPU demand and product ramp in 2024; the features, functionality, performance, availability, timing and expected benefits of AMD products; and AMD’s expected first quarter 2024 financial outlook, including revenue and non-GAAP gross margin and expected drivers based on current expectations, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; economic uncertainty; cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; loss of a significant customer; impact of the COVID-19 pandemic on AMD’s business, financial condition and results of operations; competitive markets in which AMD’s products are sold; quarterly and seasonal sales patterns; AMD's ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD's ability to introduce products on a timely basis with expected features and performance levels; AMD's ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyber-attacks; potential difficulties in operating AMD’s newly upgraded enterprise resource planning system; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products in a timely manner; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD's reliance on Microsoft and other software vendors' support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; efficiency of AMD's supply chain; AMD's ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; impact of government actions and regulations such as export regulations, tariffs and trade protection measures; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals-related provisions and other laws or regulations; impact of acquisitions, joint ventures and/or investments on AMD’s business and AMD’s ability to integrate acquired businesses;  impact of any impairment of the combined company’s assets; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit facility; AMD's indebtedness; AMD's ability to generate sufficient cash to meet its working capital requirements or generate sufficient revenue and operating cash flow to make all of its planned R&D or strategic investments; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain qualified personnel; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.
7


(*)
In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2023, AMD used a non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments. AMD also provided adjusted EBITDA and free cash flow as supplemental non-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. The non-GAAP financial measures disclosed in this earnings press release should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the data tables in this earnings press release. This earnings press release also contains forward-looking non-GAAP gross margin concerning AMD’s financial outlook, which is based on current expectations as of January 30, 2024, and assumptions and beliefs that involve numerous risks and uncertainties. Adjustments to arrive at the GAAP gross margin outlook typically include stock-based compensation, amortization of acquired intangible assets and acquisition-related and other costs. The timing and impact of such adjustments are dependent on future events that are typically uncertain or outside of AMD's control, therefore, a reconciliation to equivalent GAAP measures is not practicable at this time. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law.
-30-

AMD, the AMD Arrow logo, EPYC, Radeon, Ryzen, Instinct, Versal, Alveo, Kria, FidelityFX, 3D V-Cache, Ultrascale+, Zynq, Threadripper and combinations thereof, are trademarks of Advanced Micro Devices, Inc.
8


ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages) (Unaudited)
Three Months EndedYear Ended
 December 30,
2023
September 30,
2023
December 31,
2022
December 30,
2023
December 31,
2022
Net revenue$6,168 $5,800 $5,599 $22,680 $23,601 
Cost of sales3,042 2,843 2,753 11,278 11,550 
Amortization of acquisition-related intangibles215 210 443 942 1,448 
Total cost of sales3,257 3,053 3,196 12,220 12,998 
Gross profit2,911 2,747 2,403 10,460 10,603 
Gross margin47 %47 %43 %46 %45 %
Research and development1,511 1,507 1,366 5,872 5,005 
Marketing, general and administrative644 576 590 2,352 2,336 
Amortization of acquisition-related intangibles420 450 601 1,869 2,100 
Licensing gain(6)(10)(5)(34)(102)
Operating income (loss)342 224 (149)401 1,264 
Interest expense(27)(26)(19)(106)(88)
Other income (expense), net49 59 32 197 
Income (loss) before income taxes and equity income364 257 (136)492 1,184 
Income tax benefit(297)(39)(154)(346)(122)
Equity income in investee16 14 
Net income$667 $299 $21 $854 $1,320 
Earnings per share
Basic$0.41 $0.18 $0.01 $0.53 $0.85 
Diluted$0.41 $0.18 $0.01 $0.53 $0.84 
Shares used in per share calculation
Basic1,616 1,616 1,613 1,614 1,561 
Diluted1,628 1,629 1,618 1,625 1,571 
9


ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
December 30,
2023
December 31,
2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$3,933 $4,835 
Short-term investments1,840 1,020 
Accounts receivable, net5,376 4,126 
Inventories4,351 3,771 
Receivables from related parties
Prepaid expenses and other current assets1,259 1,265 
Total current assets16,768 15,019 
Property and equipment, net1,589 1,513 
Operating lease right-of-use assets633 460 
Goodwill24,262 24,177 
Acquisition-related intangibles, net21,363 24,118 
Investment: equity method99 83 
Deferred tax assets366 58 
Other non-current assets2,805 2,152 
Total Assets$67,885 $67,580 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$2,055 $2,493 
Payables to related parties363 463 
Accrued liabilities3,082 3,077 
Current portion of long-term debt, net751 — 
Other current liabilities438 336 
Total current liabilities6,689 6,369 
Long-term debt, net of current portion1,717 2,467 
Long-term operating lease liabilities535 396 
Deferred tax liabilities1,202 1,934 
Other long-term liabilities1,850 1,664 
Stockholders' equity:
Capital stock:
Common stock, par value17 16 
Additional paid-in capital59,676 58,005 
Treasury stock, at cost(4,514)(3,099)
Retained earnings (Accumulated deficit)723 (131)
Accumulated other comprehensive loss(10)(41)
Total stockholders' equity$55,892 $54,750 
Total Liabilities and Stockholders' Equity$67,885 $67,580 



10


ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions) (Unaudited)
Three Months EndedYear Ended
December 30, 2023December 31, 2022December 30, 2023December 31, 2022
Cash flows from operating activities:
Net income$667 $21 $854 $1,320 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization799 1,220 3,453 4,174 
Stock-based compensation374 315 1,384 1,081 
Amortization of operating lease right-of-use assets25 25 98 88 
Amortization of inventory fair value adjustment— 189 
Loss on sale or disposal of property and equipment11 16 
Deferred income taxes(219)(177)(1,019)(1,505)
(Gains) losses on equity investments, net— (1)62 
Other(24)(5)(67)(14)
Changes in operating assets and liabilities
Accounts receivable, net(321)210 (1,250)(1,091)
Inventories94 (404)(580)(1,401)
Receivables from related parties(8)(12)(7)(13)
Prepaid expenses and other assets(92)(372)(472)(1,197)
Payables to related parties37 66 (100)379 
Accounts payable(181)120 (419)931 
Accrued and other liabilities(771)(448)(221)546 
Net cash provided by operating activities381 567 1,667 3,565 
Cash flows from investing activities:
Purchases of property and equipment(139)(124)(546)(450)
Purchases of short-term investments(410)(268)(3,722)(2,667)
Proceeds from maturity of short-term investments770 1,446 2,687 4,310 
Proceeds from sale of short-term investments52 — 300 — 
Cash received from acquisition of Xilinx— — — 2,366 
Acquisitions, net of cash acquired(117)14 (131)(1,544)
Other(6)(1)(11)(16)
Net cash provided by (used in) investing activities150 1,067 (1,423)1,999 
Cash flows from financing activities:
Proceeds from debt, net of issuance costs— — — 991 
Repayment of debt— — — (312)
Proceeds from sales of common stock through employee equity plans120 88 268 167 
Repurchases of common stock(233)(250)(985)(3,702)
Common stock repurchases for tax withholding on employee equity plans(45)(35)(427)(406)
Other(1)— (2)(2)
Net cash used in financing activities(159)(197)(1,146)(3,264)
Net increase (decrease) in cash and cash equivalents372 1,437 (902)2,300 
Cash and cash equivalents at beginning of period3,561 3,398 4,835 2,535 
Cash and cash equivalents at end of period$3,933 $4,835 $3,933 $4,835 



11


ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions) (Unaudited)
 Three Months EndedYear Ended
 December 30,
2023
September 30, 2023December 31, 2022December 30,
2023
December 31,
2022
Segment and Category Information(1)
Data Center
Net revenue$2,282 $1,598 $1,655 $6,496 $6,043 
Operating income$666 $306 $444 $1,267 $1,848 
Client
Net revenue$1,461 $1,453 $903 $4,651 $6,201 
Operating income (loss)$55 $140 $(152)$(46)$1,190 
Gaming
Net revenue$1,368 $1,506 $1,644 $6,212 $6,805 
Operating income$224 $208 $266 $971 $953 
Embedded
Net revenue$1,057 $1,243 $1,397 $5,321 $4,552 
Operating income$461 $612 $699 $2,628 $2,252 
All Other
Net revenue$— $— $— $— $— 
Operating loss$(1,064)$(1,042)$(1,406)$(4,419)$(4,979)
Total
Net revenue$6,168 $5,800 $5,599 $22,680 $23,601 
Operating income (loss)$342 $224 $(149)$401 $1,264 
(Blank)
Other Data
Capital expenditures$139 $124 $124 $546 $450 
Adjusted EBITDA (2)
$1,576 $1,439 $1,438 $5,496 $6,971 
Cash, cash equivalents and short-term investments$5,773 $5,785 $5,855 $5,773 $5,855 
Free cash flow (3)
$242 $297 $443 $1,121 $3,115 
Total assets$67,885 $67,626 $67,580 $67,885 $67,580 
Total debt$2,468 $2,467 $2,467 $2,468 $2,467 
12



(1)The Data Center segment primarily includes server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs), Artificial Intelligence (AI) accelerators and Adaptive System-on-Chip (SoC) products for data centers.
The Client segment primarily includes CPUs, APUs, and chipsets for desktop, notebook and handheld personal computers.
The Gaming segment primarily includes discrete GPUs, and semi-custom SoC products and development services.
The Embedded segment primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products.
From time to time, the Company may also sell or license portions of its IP portfolio.
All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments, such as amortization of acquisition-related intangible asset, employee stock-based compensation expense, acquisition-related and other costs, and licensing gain.
(2)Reconciliation of GAAP Net Income to Adjusted EBITDA
 Three Months EndedYear Ended
 December 30,
2023
September 30,
2023
December 31,
2022
December 30,
2023
December 31,
2022
GAAP net income$667 $299 $21 $854 $1,320 
Interest expense27 26 19 106 88 
Other (income) expense, net(49)(59)(32)(197)(8)
Income tax benefit(297)(39)(154)(346)(122)
Equity income in investee(6)(3)(3)(16)(14)
Stock-based compensation374 353 310 1,380 1,012 
Depreciation and amortization164 163 176 642 626 
Amortization of acquisition-related intangibles635 660 1,044 2,811 3,548 
Acquisition-related and other costs61 39 57 262 521 
Adjusted EBITDA$1,576 $1,439 $1,438 $5,496 $6,971 
The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income for interest expense, other income (expense), net, income tax benefit, equity income in investee, stock-based compensation, depreciation and amortization expense (including amortization of acquisition-related intangibles), acquisition-related and other costs. The Company calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities that can affect cash flows.
(3)Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow

 Three Months EndedYear Ended
 December 30, 2023September 30, 2023December 31, 2022December 30, 2023December 31, 2022
GAAP net cash provided by operating activities$381 $421 $567 $1,667 $3,565 
Operating cash flow margin %%%10 %%15 %
Purchases of property and equipment(139)(124)(124)(546)(450)
Free cash flow$242 $297 $443 $1,121 $3,115 
Free cash flow margin %%%%%13 %
The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by operating activities for capital expenditures, and free cash flow margin % is free cash flow expressed as a percentage of the Company's net revenue. The Company calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities.
13
AMD FINANCIAL RESULTS Fourth Quarter and Full Year 2023 January 30, 2024


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202422 CAUTIONARY STATEMENT This presentation contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD), such as the features, functionality, performance, availability, timing and expected benefits of AMD products; AMD being uniquely positioned in AI; AMD’s expected first quarter 2024 financial outlook, including revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP tax rate and diluted share count; expected AMD Instinct™ GPU demand and 2024 product ramp in the AI market; AMD’s large and compelling TAM; AMD’s ability to expand Data Center and AI leadership; and AMD’s ability to drive long-term shareholder returns, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this presentation are based on current beliefs, assumptions and expectations, speak only as of the date of this presentation and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; economic uncertainty; cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; loss of a significant customer; impact of the COVID-19 pandemic on AMD’s business, financial condition and results of operations; competitive markets in which AMD’s products are sold; quarterly and seasonal sales patterns; AMD's ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD's ability to introduce products on a timely basis with expected features and performance levels; AMD's ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyber-attacks; potential difficulties in operating AMD’s newly upgraded enterprise resource planning system; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products in a timely manner; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD's reliance on Microsoft and other software vendors' support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; efficiency of AMD's supply chain; AMD's ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; impact of government actions and regulations such as export regulations, tariffs and trade protection measures; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals-related provisions and other laws or regulations; impact of acquisitions, joint ventures and/or investments on AMD’s business and AMD’s ability to integrate acquired businesses; impact of any impairment of the combined company’s assets; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit facility; AMD's indebtedness; AMD's ability to generate sufficient cash to meet its working capital requirements or generate sufficient revenue and operating cash flow to make all of its planned R&D or strategic investments; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain qualified personnel; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q. NON-GAAP FINANCIAL MEASURES In this presentation, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income and non-GAAP diluted earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal year 2023, AMD used a non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance. The non-GAAP financial measures disclosed in this presentation should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the Appendices at the end of this presentation. This presentation also contains forward-looking non-GAAP measures concerning AMD’s financial outlook such as gross margin and operating expenses. These forward-looking non-GAAP measures are based on current expectations as of January 30, 2024, and assumptions and beliefs that involve numerous risks and uncertainties. AMD undertakes no intent or obligation to publicly update or revise its forward-looking statements made in this presentation except as may be required by law.


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202433 Expanding Customer & Partner Ecosystem Data Center and AI Growth Strong Financial Foundation Leadership Product Portfolio OUR JOURNEY


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202444 OUR LEADERSHIP TECHNOLOGY Software Enablement Open-source software optimized for performance across heterogenous solutions Data Center Leadership Delivering innovation in AI, cloud, enterprise and accelerated computing Advanced Technology Driving leadership process technology and 3D chiplet packaging Broad IP Portfolio Executing leadership CPU, GPU, DPU, FPGA, Adaptive SoC and AI products


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202455 OUR LEADERSHIP PRODUCTS Embedded Leadership FPGAs, Adaptive SoCs and SoMs, and embedded CPUs and GPUs for a broad set of markets Gaming Top-to-bottom desktop and notebook GPUs, game console and semi-custom SoCs Client Powerful and efficient CPUs and APUs for notebook and desktop PCs and commercial workstations Data Center Broad portfolio of data center and AI solutions with server CPUs, GPUs, FPGAs, DPUs and Adaptive SoCs


 
AMD IS UNIQUELY POSITIONED IN AI ADVANCING END-TO-END AI INFRASTRUCTURE 6 AMD Instinct™ MI300X Accelerators Leadership accelerator for generative AI, LLMs and inferencing AMD Instinct MI300 Accelerators 4th Gen AMD EPYC™ Processors Broad ecosystem of OEM and solution partners Cloud Enterprise Embedded Versal™ AI Edge Zynq™ MPSoC Adaptive SoC + AI for Embedded Embedded AMD Instinct MI300A Accelerators World’s first data center APU for HPC and AI HPC AMD Ryzen™ 8040 Mobile Processors with Ryzen AI Technology leadership with upgraded on-die AI neural processing unit (NPU) PC Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 2024


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 2024 AI Software Ecosystem and InnovatorsROCm™ 6 Open Software Ecosystem for AI and HPC Broad AI Solutions Ecosystem MI300X AMD Instinct™ In Volume Production Powering LLNL El Capitan MI300A AMD Instinct™ In Volume Production LEADERSHIP DATA CENTER ACCELERATORS 7


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 20248 REVENUE FY 2023 ▪ Revenue of $22.7 billion decreased 4% y/y ▪ Growth in Embedded and Data Center segment revenue was more than offset by lower Client and Gaming segment revenue $23.6B $22.7B FY 2022 FY 2023


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 20249 REVENUE Q4 2023 ▪ Revenue of $6.2 billion increased 10% y/y ▪ Growth in Data Center and Client segment revenue was partially offset by lower Embedded and Gaming segment revenue $5.6B $6.2B Q4 2022 Q4 2023


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202410 GROSS MARGIN FY 2023 1. See Appendices for GAAP to Non-GAAP reconciliation ▪ Non-GAAP gross margin decrease primarily due to lower Client segment revenue and product mix, partially offset by higher Embedded segment revenue Non-GAAP1 45% 46% FY 2022 FY 2023 GAAP ▪ GAAP gross margin increase primarily driven by higher Embedded segment revenue, lower amortization of acquisition-related intangible assets, partially offset by lower Client segment revenue and product mix 52% 50% FY 2022 FY 2023


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202411 GROSS MARGIN Q4 2023 1. See Appendices for GAAP to Non-GAAP reconciliation ▪ Non-GAAP gross margin flat with higher revenue contribution from Data Center and Client segments offset by lower Embedded segment revenue Non-GAAP1 43% 47% Q4 2022 Q4 2023 GAAP ▪ GAAP gross margin increase driven by higher revenue contribution from Data Center and Client segment revenue, lower amortization of acquisition-related intangible assets, partially offset by lower Embedded segment revenue 51% 51% Q4 2022 Q4 2023


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202412 FY 2022 FY 2023 $1.3B $0.4B OPERATING INCOME FY 2023 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP1 $6.3B $4.9B FY 2022 FY 2023 ▪ GAAP operating income decreased y/y primarily due to lower Client segment performance, increased R&D investments, partially offset by lower amortization of acquisition-related intangible assets ▪ Non-GAAP operating income decreased primarily due to lower Client segment performance and increased R&D investments


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202413 Q4 2022 Q4 2023 $(0.1)B $0.3B OPERATING INCOME (LOSS) Q4 2023 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP1 $1.3B $1.4B Q4 2022 Q4 2023 ▪ GAAP operating income driven by higher Data Center and Client segment revenue and lower amortization of acquisition-related intangible assets, partially offset by increased R&D and marketing investments ▪ Non-GAAP operating income up y/y with higher Data Center and Client segment revenue, partially offset by increased R&D and marketing investments


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202414 $3.50 $2.65 FY 2022 FY 2023 EARNINGS PER SHARE 1 FY 2023 1. Earnings Per Share (EPS) = Diluted earnings per share; see Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP ▪ GAAP net income of $854 million, down 35% y/y ▪ GAAP EPS of $0.53, down 37% y/y, primarily due to lower Client segment performance, increased R&D investments, partially offset by lower amortization of acquisition-related intangible assets $0.84 $0.53 FY 2022 FY 2023 ▪ Non-GAAP net income of $4.3 billion, down 22% y/y ▪ Non-GAAP EPS of $2.65, down 24% y/y, primarily due to lower Client segment performance and increased R&D investments


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202415 $0.69 $0.77 Q4 2022 Q4 2023 EARNINGS PER SHARE 1 Q4 2023 1. Earnings Per Share (EPS) = Diluted earnings per share; see Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP ▪ GAAP net income of $667 million ▪ GAAP EPS of $0.41 driven by higher Data Center and Client segment revenue and lower amortization of acquisition-related intangible assets, partially offset by increased R&D and marketing investments $0.01 $0.41 Q4 2022 Q4 2023 ▪ Non-GAAP net income of $1.2 billion, up 12% y/y ▪ Non-GAAP EPS of $0.77, up 12% y/y, primarily driven by higher Data Center and Client segment revenue, partially offset by increased R&D and marketing investments


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202416 ($ in millions, except per share data) 2023 2022 Y/Y Revenue $22,680 $23,601 Down 4% Gross Profit $10,460 $10,603 Down 1% Gross Margin 46% 45% Up 1 ppt Operating Expenses $10,093 $9,441 Up 7% Operating Expense/Revenue % 45% 40% Up 5 ppts Operating Income $401 $1,264 Down 68% Operating Margin 2% 5% Down 3 ppts Net Income $854 $1,320 Down 35% Earnings Per Share1 $0.53 $0.84 Down 37% FY 2023 SUMMARY P&L | GAAP 1. Earnings Per Share (EPS) = Diluted earnings per share; see Appendices for GAAP to Non-GAAP reconciliation


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202417 ($ in millions, except per share data) 2023 2022 Y/Y Revenue $22,680 $23,601 Down 4% Gross Profit $11,436 $12,273 Down 7% Gross Margin 50% 52% Down 2 ppts Operating Expenses $6,616 $6,030 Up 10% Operating Expense/Revenue % 29% 26% Up 3 ppts Operating Income $4,854 $6,345 Down 23% Operating Margin 21% 27% Down 6 ppts Net Income $4,302 $5,504 Down 22% Earnings Per Share1 $2.65 $3.50 Down 24% FY 2023 SUMMARY P&L | NON-GAAP 1 1. Earnings Per Share (EPS) = Diluted earnings per share; see Appendices for GAAP to Non-GAAP reconciliation


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202418 ($ in millions, except per share data) Q4’23 Q4’22 Y/Y Q3’23 Q/Q Revenue $6,168 $5,599 Up 10% $5,800 Up 6% Gross Profit $2,911 $2,403 Up 21% $2,747 Up 6% Gross Margin 47% 43% Up 4 ppts 47% Flat Operating Expenses $2,575 $2,557 Flat $2,533 Up 2% Operating Expense/Revenue % 42% 46% Down 4 ppts 44% Down 2 ppts Operating Income (Loss) $342 $(149) Up 330% $224 Up 53% Operating Margin 6% (3)% Up 9 ppts 4% Up 2 ppts Net Income $667 $21 Up 3,076% $299 Up 123% Earnings Per Share1 $0.41 $0.01 Up 4,000% $0.18 Up 128% Q4 2023 SUMMARY P&L | GAAP 1. Earnings Per Share (EPS) = Diluted earnings per share; see Appendices for GAAP to Non-GAAP reconciliation


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202419 ($ in millions, except per share data) Q4’23 Q4’22 Y/Y Q3’23 Q/Q Revenue $6,168 $5,599 Up 10% $5,800 Up 6% Gross Profit $3,133 $2,859 Up 10% $2,963 Up 6% Gross Margin 51% 51% Flat 51% Flat Operating Expenses $1,727 $1,602 Up 8% $1,697 Up 2% Operating Expense/Revenue % 28% 29% Down 1 ppt 29% Down 1 ppt Operating Income $1,412 $1,262 Up 12% $1,276 Up 11% Operating Margin 23% 23% Flat 22% Up 1 ppt Net Income $1,249 $1,113 Up 12% $1,135 Up 10% Earnings Per Share1 $0.77 $0.69 Up 12% $0.70 Up 10% Q4 2023 SUMMARY P&L | NON-GAAP 1 1. Earnings Per Share (EPS) = Diluted earnings per share; see Appendices for GAAP to Non-GAAP reconciliation


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202420 $5.6 $5.4 $5.4 $5.8 $6.2 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 REVENUE ($ in Billions)


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202421 43% 44% 46% 47% 47% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 GROSS MARGIN (GAAP)


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202422 51% 50% 50% 51% 51% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 GROSS MARGIN (Non-GAAP)1 1. See Appendices for GAAP to Non-GAAP reconciliation.


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202423 $0.01 $(0.09) $0.02 $0.18 $0.41 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 EARNINGS (LOSS) PER SHARE 1 (GAAP) 1. Earnings Per Share (EPS) = Diluted earnings per share except for Q1’23 for which basic shares were used


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202424 $0.69 $0.60 $0.58 $0.70 $0.77 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 EARNINGS PER SHARE (Non-GAAP)1 1. See Appendices for GAAP to Non-GAAP reconciliation; Earnings Per Share (EPS) = Diluted earnings per share


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202425 Q4 2023 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q4’23 Q3’23 Q/Q Cash, Cash Equivalents and Short-term Investments $5,773 $5,785 Flat Accounts Receivable, Net $5,376 $5,054 Up 6% Inventories $4,351 $4,445 Down 2% Total Debt $2,468 $2,467 Flat


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202426 FY 2023 SEGMENT RESULTS ($ in millions) 2023 2022 Y/Y Data Center Net Revenue $6,496 $6,043 Up 7% Operating Income $1,267 $1,848 Down 31% Client Net Revenue $4,651 $6,201 Down 25% Operating Income (Loss) ($46) $1,190 Down 104% Gaming Net Revenue $6,212 $6,805 Down 9% Operating Income $971 $953 Up 2% Embedded Net Revenue $5,321 $4,552 Up 17% Operating Income $2,628 $2,252 Up 17%


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202427 Q4 2023 SEGMENT RESULTS ($ in millions) Q4’23 Q4’22 Y/Y Q3’23 Q/Q Data Center Net Revenue $2,282 $1,655 Up 38% $1,598 Up 43% Operating Income $666 $444 Up 50% $306 Up 118% Client Net Revenue $1,461 $903 Up 62% $1,453 Flat Operating Income (Loss) $55 ($152) Up 136% $140 Down 61% Gaming Net Revenue $1,368 $1,644 Down 17% $1,506 Down 9% Operating Income $224 $266 Down 16% $208 Up 8% Embedded Net Revenue $1,057 $1,397 Down 24% $1,243 Down 15% Operating Income $461 $699 Down 34% $612 Down 25%


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202428 DATA CENTER SEGMENT Q4 2023 ▪ Announced availability of AMD Instinct MI300X GPU with leadership generative AI performance and AMD Instinct MI300A APU for HPC ▪ Microsoft, Meta, Oracle, and other cloud providers announced MI300X deployments; Dell Technologies, HPE, Lenovo, Supermicro and others announced new AMD Instinct MI300 enterprise and HPC platforms ▪ Unveiled open-source ROCmTM 6 software stack optimized for generative AI ▪ Over 800 AMD EPYC CPU-based public cloud instances now available ▪ AMD processors power 140 supercomputers in Top500 supercomputer list, and 8 of top 10 in Green500 list of most energy-efficient supercomputers Strategic Highlights $1.7B $2.3B Q4 2022 Q4 2023 27% 29% Q4 2022 Q4 2023 Revenue Operating Margin Revenue $2.3 Billion Up 38% y/y Operating Income $666 Million vs. $444 Million a year ago Primarily due to operating leverage driven by higher revenue Strong growth in both AMD Instinct GPUs and 4th Gen AMD EPYC CPU sales


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202429 CLIENT SEGMENT Q4 2023 ▪ Announced Ryzen 8040 Series mobile processors with an AI NPU delivering up to 60% more AI performance than Ryzen 7040 ▪ Millions of Ryzen AI-enabled PCs have shipped from all the leading PC OEMs with Ryzen CPUs now powering more than 90% of AI-enabled PCs currently in market ▪ Launched AMD Ryzen 8000G CPUs, the world’s first desktop PC processors with a dedicated AI NPU ▪ Announced next generation “Strix” processors with second generation XDNA NPU expected to deliver 3x more AI performance than Ryzen 7040 series processors Strategic Highlights $0.9B $1.5B Q4 2022 Q4 2023 (17)% 4% Q4 2022 Q4 2023 Revenue Operating Margin Revenue $1.5 Billion Up 62% y/y Primarily driven by increase in AMD Ryzen 7000 Series CPU sales Operating Income $55 Million vs. $152 Million Loss a year ago Primarily driven by higher revenue


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202430 16% 16% Q4 2022 Q4 2023 GAMING SEGMENT Q4 2023 ▪ Introduced Radeon RX 7600 XT GPU, a high-performance graphics card for immersive 1080P gaming experiences ▪ Launched new open source FidelityFX Super Resolution 3 software that delivers significantly higher gaming frame rates on virtually all modern GPUs and APUs Strategic Highlights $1.6B $1.4B Q4 2022 Q4 2023 Revenue Operating Margin Revenue $1.4 Billion Down 17% y/y Operating Income $224 Million vs. $266 Million a year ago Primarily due to lower revenueLower semi-custom revenue, partially offset by increased Radeon GPU sales


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202431 EMBEDDED SEGMENT Q4 2023 ▪ Launched Versal Prime Adaptive SoCs with industry-first support for DDR5 memory and increased DSP capability compared to prior generation ▪ Launched new Versal SoC solutions bringing industry-leading AI compute capabilities and advanced safety and security features to next generation vehicles ▪ Launched Ryzen embedded processors for industrial automation, machine vision, robotics and edge server applications Strategic Highlights $1.1B Q4 2022 Q4 2023 50% 44% Q4 2022 Q4 2023 Revenue Operating Margin Revenue $1.1 Billion Down 24% y/y Primarily due to customers reducing their inventory levels Operating Income $461 Million vs. $699 Million a year ago $1.4B Primarily due to lower revenue


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202432 ($ in millions) Q1’24 Revenue ~$5.4 Billion, +/- $300 Million Gross Margin ~52% Operating Expenses ~$1.73 Billion Effective Tax Rate ~13% of pre-tax income Diluted Share Count² ~1.63 Billion shares FINANCIAL OUTLOOK – NON-GAAP1 1. 1. See Cautionary Statement on Slide 2. These forward-looking outlook statements and non-GAAP measures are based on current expectations as of January 30, 2024, and assumptions and beliefs that involve numerous risks and uncertainties. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law. All items, except revenue, are on a non-GAAP basis. Adjustments to arrive at the GAAP financial outlook typically include stock-based compensation, amortization of acquired intangible assets, income tax provision, and other non-recurring items such as impairment charges and acquisition-related costs. The timing and impact of such adjustments are dependent on future events that are typically uncertain or outside of AMD's control, therefore, a reconciliation to equivalent GAAP measures is not practicable at this time. 2. 2. Refer to Diluted Share Count overview in the Appendices


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 2024333 Data Center Segment Revenue Up 7% y/y, Embedded Up 17% y/y Gross Margin 46% Non-GAAP Gross Margin 50% EPS $0.53 Non-GAAP EPS $2.65 Revenue $22.7B Down 4% y/y FY 2023 SUMMARY 1 RECORD 2023 DATA CENTER AND EMBEDDED SEGMENT REVENUE 1. See Appendices for GAAP to Non-GAAP reconciliation; Earnings Per Share (EPS) = Diluted earnings per share


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 20243434 Data Center Segment Revenue $2.3B Up 38% y/y Gross Margin 47% Non-GAAP Gross Margin 51% EPS $0.41 Non-GAAP EPS $0.77 Revenue $6.2B Up 10% y/y Q4 2023 SUMMARY 1 LAUNCHED AMD INSTINCT GPUS POSITIONED FOR STRONG 2024 RAMP IN THE AI MARKET 1. See Appendices for GAAP to Non-GAAP reconciliation; Earnings Per Share (EPS) = Diluted earnings per share


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 20243535 AMD COMMITMENT TO ESG Governance Integrating corporate responsibility and governance across product design, supply chain, operations and external engagement Social Fostering a culture of diversity, belonging and inclusion, partnering with suppliers and positively impacting our communities Environmental Advancing environmental solutions in our products, supply chain and operations, while accelerating energy efficiency for IT users TOGETHER WE ADVANCE_CORPORATE RESPONSIBILITY


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 20243636 Large and Compelling TAM World-Class Execution and Focus Technology Leadership Expanding Data Center and AI Leadership Strong Balance Sheet OUR MOMENTUM DRIVING LONG-TERM SHAREHOLDER RETURNS


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202437 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND GROSS MARGIN (Millions) (Unaudited) Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 2023 2022 GAAP gross profit $ 2,403 $ 2,359 $ 2,443 $ 2,747 $ 2,911 $ 10,460 $ 10,603 GAAP gross margin 43% 44% 46% 47% 47% 46% 45% Stock-based compensation 9 8 10 6 6 30 29 Amortization of acquisition-related intangibles 443 305 212 210 215 942 1,448 Acquisition-related and other costs (1) 4 3 - - 1 4 193 Non-GAAP gross profit $ 2,859 $ 2,675 $ 2,665 $ 2,963 $ 3,133 $ 11,436 $ 12,273 Non-GAAP gross margin 51% 50% 50% 51% 51% 50% 52% RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES (Millions) (Unaudited) Q4’23 Q4’22 Q3’23 2023 2022 GAAP operating expenses $ 2,575 $ 2,557 $ 2,533 $ 10,093 $ 9,441 GAAP operating expenses/revenue % 42% 46% 44% 45% 40% Stock-based compensation 368 301 347 1,350 983 Amortization of acquisition-related intangibles 420 601 450 1,869 2,100 Acquisition-related and other costs (1) 60 53 39 258 328 Non-GAAP operating expenses $ 1,727 $ 1,602 $ 1,697 $ 6,616 $ 6,030 Non-GAAP operating expenses/revenue % 28% 29% 29% 29% 26% APPENDICES (1) Acquisition-related and other costs primarily comprised of transaction costs, purchase price adjustments for inventory, certain compensation charges, contract termination and workforce rebalancing charges.


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202438 APPENDICES RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME (Millions) (Unaudited) Q4’23 Q4’22 Q3’23 2023 2022 GAAP operating income (loss) $ 342 $ (149) $ 224 $ 401 $ 1,264 GAAP operating margin 6% (3%) 4% 2% 5% Stock-based compensation 374 310 353 1,380 1,012 Amortization of acquisition-related intangibles 635 1,044 660 2,811 3,548 Acquisition-related and other costs (1) 61 57 39 262 521 Non-GAAP operating income $ 1,412 $ 1,262 $ 1,276 $ 4,854 $ 6,345 Non-GAAP operating margin 23% 23% 22% 21% 27% (1) Acquisition-related and other costs primarily comprised of transaction costs, purchase price adjustments for inventory, certain compensation charges, contract termination and workforce rebalancing charges.


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202439 RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) / EARNINGS (LOSS) PER SHARE(2) (1) Acquisition-related and other costs primarily comprised of transaction costs, purchase price adjustments for inventory, certain compensation charges, contract termination and workforce rebalancing charges. (2) Earnings Per Share (EPS) = Diluted earnings per share except for Q1’23 for which basic shares were used. APPENDICES (Millions, except per share data) (Unaudited) Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 2023 2022 GAAP net income (loss) / earnings (loss) per share (2) $ 21 $ 0.01 $ (139) $ (0.09) $ 27 $ 0.02 $ 299 $ 0.18 $ 667 $ 0.41 $854 $ 0.53 $ 1,320 $ 0.84 (Gains) losses on equity investments, net 5 – (1) – 3 – (4) – 1 – (1) – 62 0.04 Stock-based compensation 310 0.19 305 0.19 348 0.21 353 0.22 374 0.23 1,380 0.85 1,012 0.64 Equity income in investee (3) – (1) – (6) – (3) – (6) – (16) (0.01) (14) (0.01) Amortization of acquisition-related intangibles 1,044 0.65 823 0.51 693 0.42 660 0.41 635 0.39 2,811 1.73 3,548 2.26 Acquisition-related and other costs (1) 57 0.04 115 0.07 47 0.03 39 0.02 61 0.04 262 0.16 521 0.33 Income tax provision (321) (0.20) (132) (0.08) (164) (0.10) (209) (0.13) (483) (0.30) (988) (0.61) (945) (0.60) Non-GAAP net income / earnings per share (2) $1,113 $ 0.69 $970 $ 0.60 $948 $ 0.58 $1,135 $ 0.70 $1,249 $ 0.77 $4,302 $ 2.65 $5,504 $ 3.50 Shares used in earnings per share calculation Shares used in per share calculation (GAAP) 1,618 1,611 1,627 1,629 1,628 1,625 1,571 Shares used in per share calculation (Non-GAAP) 1,618 1,618 1,627 1,629 1,628 1,625 1,571


 
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202440 Shares (millions) (1) Q4’23 Q1’24 Actual Estimate Basic shares 1,616 1,617 Dilutive impact from employee equity grants (2) 12 14 Diluted shares 1,628 1,631 APPENDICES SHARE COUNT OVERVIEW The table above provides actual share count for Q4’23 and an estimate of share count to use when calculating GAAP and non-GAAP diluted earnings per share for Q1’24. (1) Share counts are weighted average shares. (2) The dilutive impact of employee equity grants is based on the Treasury Stock method and is dependent upon the average stock price during the period. The Q4’23 average stock price was $117.86. The Q4’23 average stock price of $117.86 was assumed for Q1’24 average stock price estimates.


 


 
v3.24.0.1
Cover Page
Jan. 30, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 30, 2024
Entity Registrant Name ADVANCED MICRO DEVICES, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-07882
Entity Tax Identification Number 94-1692300
Entity Address, Address Line One 2485 Augustine Drive
Entity Address, City or Town Santa Clara
Entity Address, State or Province CA
Entity Address, Postal Zip Code 95054
City Area Code 408
Local Phone Number 749-4000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol AMD
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000002488
Amendment Flag false

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