amd-20240928

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 28, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-07882

ADVANCED MICRO DEVICES, INC.

(Exact name of registrant as specified in its charter)


Delaware									94-1692300
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)

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, former address and former fiscal year, if changed since last report)

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 per share	AMD	The Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the Exchange Act) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of the registrant’s common stock, $0.01 par value per share, as of October 23, 2024: 1,622,807,346

Table of Contents

INDEX


		Page No.
Part I Financial Information
Item 1	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Statements of Operations	3
	Condensed Consolidated Statements of Comprehensive Income	4
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Cash Flows	6
	Condensed Consolidated Statements of Stockholders’ Equity	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3	Quantitative and Qualitative Disclosures about Market Risk	29
Item 4	Controls and Procedures	29
Part II Other Information

Item 1	Legal Proceedings	30
Item 1A	Risk Factors	30
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 5	Other Information	56
Item 6	Exhibits	57
Signature		58

Table of Contents

PART I. FINANCIAL INFORMATION


ITEM 1.			CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
	(In millions, except per share amounts)
Net revenue	$	6,819	$	5,800	$	18,127	$	16,512
Cost of sales	3,167		2,843		8,590		8,236
Amortization of acquisition-related intangibles	233		210		694		727
Total cost of sales	3,400		3,053		9,284		8,963
Gross profit	3,419		2,747		8,843		7,549

Research and development	1,636		1,507		4,744		4,361
Marketing, general and administrative	721		576		1,991		1,708
Amortization of acquisition-related intangibles	352		450		1,116		1,449
Licensing gain	(14)		(10)		(37)		(28)
Operating income	724		224		1,029		59

Interest expense	(23)		(26)		(73)		(79)
Other income (expense), net	36		59		144		148
Income before income taxes and equity income	737		257		1,100		128

Income tax (benefit)	(27)		(39)		(38)		(49)
Equity income in investee	7		3		21		10
Net income	$	771	$	299	$	1,159	$	187

Earnings per share
Basic	$	0.48	$	0.18	$	0.72	$	0.12
Diluted	$	0.47	$	0.18	$	0.71	$	0.11
Shares used in per share calculation
Basic	1,620		1,616		1,619		1,613
Diluted	1,636		1,629		1,638		1,625

See accompanying notes.

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Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
	(In millions)
Net income	$	771	$	299	$	1,159	$	187
Other comprehensive income (loss), net of tax:
Net change in unrealized gains (losses) on cash flow hedges	31		(18)		12		(9)
Total comprehensive income	$	802	$	281	$	1,171	$	178

See accompanying notes.

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Advanced Micro Devices, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)


	September 28, 2024		December 30, 2023
	(In millions, except par value amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	3,897	$	3,933
Short-term investments	647		1,840
Accounts receivable, net	7,241		5,376
Inventories	5,374		4,351
Receivables from related parties	29		9
Prepaid expenses and other current assets	1,547		1,259
Total current assets	18,735		16,768
Property and equipment, net	1,669		1,589
Operating lease right-of-use assets	647		633
Goodwill	24,839		24,262
Acquisition-related intangibles, net	19,572		21,363
Investment: equity method	137		99
Deferred tax assets	1,183		366
Other non-current assets	2,854		2,805
Total assets	$	69,636	$	67,885
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,530	$	2,055
Payables to related parties	461		363
Accrued liabilities	4,120		3,082
Current portion of long-term debt, net	—		751
Other current liabilities	389		438
Total current liabilities	7,500		6,689
Long-term debt, net of current portion	1,720		1,717
Long-term operating lease liabilities	518		535
Deferred tax liabilities	1,162		1,202
Other long-term liabilities	1,751		1,850
Commitments and contingencies (See Note 13)
Stockholders’ equity:
Capital stock:
Common stock, par value $0.01; shares authorized: 2,250; shares issued: 1,678 and 1,663; shares outstanding: 1,623 and 1,616	17		17
Additional paid-in capital	60,896		59,676
Treasury stock, at cost (shares held: 55 and 47)	(5,812)		(4,514)
Retained earnings	1,882		723
Accumulated other comprehensive income (loss)	2		(10)
Total stockholders’ equity	56,985		55,892
Total liabilities and stockholders’ equity	$	69,636	$	67,885

See accompanying notes.

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Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Nine Months Ended
	September 28, 2024		September 30, 2023
	(In millions)
Cash flows from operating activities:
Net income	$	1,159	$	187
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,309		2,654
Stock-based compensation	1,068

SEC Form 10-Q filed by Advanced Micro Devices Inc.