d329da2d595f1158108f5d1f345c8e3b1b8fe3589385e0e29cfb1618904b9591

Percentage increase in unit shipments for AMD Ryzen desktop and mobile processors (percent)

Percentage increase in average selling price for AMD Ryzen desktop and mobile processors (percent)

59095f897cbfbbdfcff9cd38bf67b7efc00703fc8db2802a0c0232689b8276fe

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

62d8132ab11e1d577a3071666a0e2b05c58e8bbda5a8c4734b8fee49c6763648

Data Center

Client

Gaming

Embedded

Computing and Graphics

Enterprise, Embedded and Semi-Custom

Xilinx

- Computing Solutions

- Graphics and Visual Solutions

- All Other

Total Revenue

f46d024b690bd23b7283763b9b6b29be2dac074b259bd9f038c9ad881bcbe472

Net revenue (USD, millions)

Cost of sales (USD, millions)

Amortization of acquisition-related intangibles included in cost of sales (USD, millions)

Total cost of sales (USD, millions)

Gross profit (USD, millions)

Research and development (USD, millions)

Marketing, general and administrative (USD, millions)

Amortization of acquisition-related intangibles included in operating expenses (USD, millions)

Restructuring charges (USD, millions)

Licensing gain (USD, millions)

Operating income (USD, millions)

Interest expense (USD, millions)

Other income (expense), net (USD, millions)

Income before income taxes and equity income (USD, millions)

Income tax provision (benefit) (USD, millions)

Equity income in investee (USD, millions)

Net income (USD, millions)

Earnings per share Basic (USD)

Earnings per share Diluted (USD)

45ff51012de07a8cb4a6baf96c7fa937eb3a24195bf7f1c06032faccd3d287dd

89f1966c406a0a2c149f348620a2a3ebc8769c7e01423d8ca05e45353a44dc3d

United States

Japan

China

China (including Hong Kong)

China (including Taiwan)

Singapore

Europe

Taiwan

Other countries

- International Sales

c72069cfb529e381ea59456b8107cff85a1d271564b7a5a62f5c6d5dfd0bf7e9

Cash and cash equivalents (USD, millions)

Short-term investments (USD, millions)

Accounts receivable, net (USD, millions)

Inventories (USD, millions)

Receivables from related parties (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Total current assets (USD, millions)

Property and equipment, net (USD, millions)

Operating lease right-of-use assets (USD, millions)

Goodwill (USD, millions)

Acquisition-related intangibles, net (USD, millions)

Investment: equity method (USD, millions)

Deferred tax assets, net (USD, millions)

Other non-current assets (USD, millions)

Total assets (USD, millions)

Accounts payable (USD, millions)

Payables to related parties (USD, millions)

Accrued liabilities (USD, millions)

Current portion of long-term debt, net (USD, millions)

Other current liabilities (USD, millions)

Total current liabilities (USD, millions)

Long-term debt, net of current portion (USD, millions)

Long-term operating lease liabilities (USD, millions)

Deferred tax liabilities (USD, millions)

Other long-term liabilities (USD, millions)

Common stock (USD, millions)

Additional paid-in capital (USD, millions)

Treasury stock, at cost (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

d4bb79b526f5360440c25293c4dff77a857c4d9e25fdc255e304402bfb663a8c

Net Income (USD, millions)

Depreciation and Amortization (USD, millions)

Amortization of Acquisition-Related Intangibles (USD, millions)

Stock-Based Compensation (USD, millions)

Amortization of Operating Lease Right-of-Use Assets (USD, millions)

Amortization of Inventory Fair Value Adjustment (USD, millions)

Deferred Income Taxes (USD, millions)

Inventory Loss at Contract Manufacturer (USD, millions)

Other, Operating Activities (USD, millions)

Net Cash Provided by Operating Activities (USD, millions)

Purchases of Property and Equipment (USD, millions)

Purchases of Short-Term Investments (USD, millions)

Proceeds from Maturity of Short-Term Investments (USD, millions)

Proceeds from Sale of Short-Term Investments (USD, millions)

Cash Received from Acquisition of Xilinx (USD, millions)

Acquisitions, Net of Cash Acquired (USD, millions)

Related Party Equity Method Investment (USD, millions)

Issuance of Loan to Related Party (USD, millions)

Purchases of Strategic Investments (USD, millions)

Other, Investing Activities (USD, millions)

Net Cash Provided by (Used in) Investing Activities (USD, millions)

Proceeds from Debt, Net of Issuance Costs (USD, millions)

Repayment of Debt (USD, millions)

Proceeds from Sales of Common Stock Through Employee Equity Plans (USD, millions)

Repurchases of Common Stock (USD, millions)

Stock Repurchases for Tax Withholding on Employee Equity Plans (USD, millions)

Other, Financing Activities (USD, millions)

Net Cash Used in Financing Activities (USD, millions)

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash (USD, millions)

Accounts Receivable, Net (USD, millions)

Prepaid Expenses and Other Assets (USD, millions)

Receivables from and Payable to Related Parties, Net (USD, millions)

Accounts Payable (USD, millions)

Accrued and Other Liabilities (USD, millions)

Cash, Cash Equivalents and Restricted Cash at Beginning of Year (USD, millions)

Cash, Cash Equivalents and Restricted Cash at End of Year (USD, millions)

720c5802278c219d8ff1db70a686562284bb545c8f9b97b6b791ba929a10df79

The **operating cash flow** was so high in Q4 2024 because several factors significantly boosted the net cash provided by operating activities. Despite a **decrease in net income** from **$667 million** in Q4 2023 to **$482 million** in Q4 2024, key non-cash adjustments—such as **depreciation and amortization ($172 million)** and **stock‑based compensation ($339 million)**—helped increase cash flow. Additionally, favorable changes in working capital, including a **positive change in accounts receivable ($96 million)** and improvements in other operating assets and liabilities, combined to raise the operating cash flow to **$1,299 million** in Q4 2024.  **[0000002488-25-000009_q42024991.htm:13]** 

Why was Operating Cash Flow so high in Q4 2024?

The adverse (negative) Depreciation and Amortization in Q4 2024 is driven by the unusually large amortization charge for acquisition‐related intangibles. In Q4, a significant portion of the expense—**$584 million**—was attributable to this amortization, which overwhelmed the regular depreciation and amortization amounts and resulted in a net negative figure for the period.  **[0000002488-25-000012_amd-20241228.htm:85]** **[0000002488-25-000009_q42024991.htm:15]** 

What caused the negative Depreciation and Amortization in Q4 2024?

The amortization continued to appear in FY 2024 because AMD still recorded expenses for remaining acquisition-related intangibles—even though the amount decreased. The reduction was primarily due to **certain acquisition-related intangibles being fully amortized in FY 2023**, which resulted in a lower expense of **$2,394 million in FY 2024** compared to **$2,811 million in FY 2023** (a decrease of **$417 million or 15%**).  **[0000002488-25-000012_amd-20241228.htm:75]** 

Why did Amortization of Acquisition-Related Intangibles appear in FY 2024?

728d51d545b3e1c00a6b5e93440c057630158c449a0c30c399b01ba78d51b659

The high Operating Income in Q3 2024 was driven by **multiple factors**. AMD experienced **strong revenue growth** (up **18% year-over-year**), with the Data Center segment showing a **122% increase** in revenue and robust sales performance in AMD EPYC CPUs. Improvements in **gross margin**, which rose from **47% to 50% on a GAAP basis** (and from **51% to 54% on a non-GAAP basis**), further boosted profitability. Additionally, **operating leverage** helped mitigate the impact of a **7% increase** in operating expenses, allowing higher operating income. The enhanced performance was also supported by significant contributions from key segments, including a more than tripled operating income in the Data Center segment and a **97% increase** in the Client segment's operating income.  **[0000002488-24-000161_q32024991.htm:0]** **[0000002488-24-000161_amdq324earningsslides.htm:5]** **[AMD_3404421_6]** 

Why was Operating Income so high in Q3 2024?

The significant **increase in Net Revenue for Q4 2024** was primarily driven by the **strong performance in the Data Center and Client segments**. The **Data Center segment** saw revenue grow by **69% year-over-year** to **$3,859 million**, fueled by higher sales of AMD Instinct GPUs and AMD EPYC CPUs. Additionally, the **Client segment** experienced a **58% year-over-year rise** to **$2,313 million** due to robust demand for AMD Ryzen processors. These strong results in high-margin segments offset the declines observed in the Gaming (down **59%**) and Embedded (down **13%**) segments, resulting in an overall net revenue increase of **24%** year-over-year to **$7,658 million**.  **[0000002488-25-000009_q42024991.htm:0]** **[0000002488-25-000009_amdq424earningsslidesfin.htm:5]** **[0000002488-25-000009_amdq424earningsslidesfin.htm:6]** **[AMD_3414313_6]** 

What drove the significant increase in Net Revenue in Q4 2024?

The **EPS Basic** was lower in **Q4 2024** primarily due to a **28% decrease** in **net income**—dropping from **$667 million** in Q4 2023 to **$482 million** in Q4 2024—which significantly impacted the earnings per share despite a **24% rise** in revenue and a **155% increase** in operating income. Additionally, higher **operating expenses** (up by **17%** to **$3,022 million**) also contributed to the lower net income and, by extension, the reduced EPS.  **[0000002488-25-000009_q42024991.htm:0]** **[0000002488-25-000009_amdq424earningsslidesfin.htm:5]** 

Why was Earnings per Share Basic lower in Q4 2024?

AMD's net income was lower in Q4 2024 because **despite strong revenue growth in certain segments**, the overall profitability was impacted by several factors. **Increased operating expenses by 17%** and a decline in performance in segments such as Gaming and Embedded contributed to reducing the net income to **$482 million in Q4 2024**, down from **$667 million in Q4 2023**. Additionally, the discrepancy between the significant increase in operating income and the net income suggests that other non-operational factors—such as taxes, interest, and adjustments for stock-based compensation and acquisition-related intangibles—also played a role in the decline.  **[0000002488-25-000009_q42024991.htm:0]** **[0000002488-25-000009_amdq424earningsslidesfin.htm:5]** **[0000002488-25-000009_amdq424earningsslidesfin.htm:9]** 

Why was Net Income lower in Q4 2024?

c8941cbe61d63944827a58d446f74b14da8288e43749e6b99a67082c4956a9c2

The increase in AMD's total assets in Q3 2024 was driven primarily by a **significant increase in accounts receivable** (rising from **$5,376 million** to **$7,241 million**), which indicates higher sales and revenue recognition, along with a **growth in inventories** (increasing from **$4,351 million** to **$5,374 million**), suggesting a ramp-up in production to support growing demand. There was also a **slight increase in goodwill** (from **$24,262 million** to **$24,839 million**), which may be due to acquisitions or adjustments in the valuation of existing acquisitions.  **[0000002488-24-000163_amd-20240928.htm:2]** 

What drove the jump in Total assets in Q3 2024?

Accounts receivable, net surged in Q3 2024 primarily because AMD experienced **higher revenue in Q3 2024**—a 17% sequential increase driven by strong growth in both the Data Center and Client segments. In particular, the **Data Center segment** grew by **25% sequentially**, accounting for **52% of total revenue**, which led to a higher volume of credit sales and consequently higher receivables. In addition, the timing of billing and collections also played a role, as revenue recognized during the quarter had not yet been fully collected.  **[0000002488-24-000161_q32024991.htm:0]** **[0000002488-24-000161_amdq324earningsslides.htm:5]** **[AMD_3404421_6]** 

Why did Accounts receivable, net surge in Q3 2024?

The spike in **Deferred Tax Assets** in **Q3 2024** resulted mainly from **two factors**. First, there was a notable **increase in Capitalized R&D**, which saw the deferred tax assets related to R&D rise significantly (from **$1,753 million in 2023** to **$2,892 million in 2024**).  **[0000002488-25-000012_amd-20241228.htm:113]**  Second, an **intercompany integration transaction** during 2024 led to the remeasurement of associated deferred taxes. This transaction increased the deferred tax asset for capitalized R&D, with partial offsets from adjustments to other deferred tax liabilities, such as **GILTI**.  **[0000002488-25-000012_amd-20241228.htm:113]** 

What factors caused Deferred tax assets to spike in Q3 2024?

The documents show that **Receivables from related parties** increased dramatically from **$9 million as of December 30, 2023** to **$113 million as of December 28, 2024**; however, they do not provide specific reasons for this rise. It is suggested that the increase may be related to higher volumes of transactions or new agreements with related parties, but no concrete details are provided in the documents.  **[0000002488-25-000012_amd-20241228.htm:83]** **[0000002488-25-000009_q42024991.htm:12]** 

What explains the dramatic rise in Receivables from related parties in Q4 2024?

The **sharp decrease in short-term investments in Q3 2024** was due to several cash flow activities. AMD invested **$707 million** in purchasing new short-term investments, while at the same time it received **$1,351 million** from maturing investments and generated **$591 million** from selling them. Additionally, AMD allocated **$548 million** in cash for the acquisition of Silo AI, which further reduced available short-term investments.  **[0000002488-24-000163_amd-20240928.htm:2]** **[0000002488-24-000163_amd-20240928.htm:23]** **[0000002488-24-000163_amd-20240928.htm:3]** 

Why did Short-term investments drop sharply in Q3 2024?

e5186cb771e58e557450d5606d5efeaff567642a99245e7d67258aa4ec17baf6

Advanced Micro Devices Inc (AMD)

Financials