AMD financials

Main article: AMD

2024

Revenue growth for the year by 13% to $25.8 billion

• Revenue for 2024 - $25.8 billion, + 13.7% YoY.

• Net profit for 2024 - $1.64 billion, + 92.2% yoy.

• Operating cash flow - for 2024 - $3.04 billion, + 82.4% y/y.

• Net baibek along with dividends - for the entire 2024 - $1.21 billion, compared with 1.26 billion in 2023.

The results are good, the potential is impressive. AMD sees its further development in the creation of "smart" platforms, where AI will become an integral part of the product architecture. The plans include further scaling of RDNA and Zen 5 architectures with an emphasis on parallel computing for AI tasks.

All attention at this time is on the fast-growing and high-margin segment of AI chips, which formed the entire mega success of Nvidia.

The development of artificial intelligence accelerators of the Instinct family is at the center of AMD's strategy for the coming year. The company has unveiled an extended roadmap for AMD Instinct accelerators, which includes the transition to the annual launch cycle of flagship AI accelerators.

In addition to AI accelerators, AMD continues to develop its server line (AMD EPYC 5th generation) with the start of a large-scale implementation from January 2025.

AMD's share of the server CPU market reached 32-33% by the end of 2024 and is expected to grow to 38-39% by the end of 2025, while 10 years ago within zero.

In the client segment, AMD will continue to develop the Ryzen AI line. The company is expanding its AI PC portfolio, with the new Ryzen AI Max and Ryzen AI Max PRO processors, as well as the expanded Ryzen AI 300 and Ryzen AI 300 PRO line.

The Ryzen 9000 Series launched as part of the launch of the new Zen5 architecture, the most powerful consumer processors, and the Ryzen AI 300 Series, the third generation for AI PCs, with performance up to 50 TOPS.

Revenues directly from GPU Instinct in 2024 amounted to more than $5 billion, the company predicts their increase to tens of billions in the coming years.

The company focuses on expanding the AI ecosystem (AMD's initially weak spot compared to Intel and Nvidia), including ROCm software and integration with major customers such as Microsoft, Google, Amazon and Meta.

The company plans to expand cooperation with leading cloud service providers and software developers to optimize AI solutions based on its processors.

Q3 revenue growth from data center processors. AMD top contender to move from Nvidia pedestal

AMD's revenue in the third quarter of 2024 reached a record $6.82 billion, increasing by 17.6% for the year and + 22.5% for two years, interrupting more than two years of stagnation. Compared to 3q19, an increase of 278.6%.

Since the beginning of the year, the indicators are slightly less pronounced, but still strong: $18.1 billion in revenue for 9m24 vs $16.5 billion for 9m23 (+ 9.8% YoY), $18 billion for 9m22 (+ 0.7% over two years) and only $4.6 billion for 9m19 (+ 293% over 5 years).

Operating profit amounted to $0.72 billion (+ 223% for the year, a volatile indicator). For 9m24, operating profit amounted to $1.03 billion vs $0.1 billion for 9m23, $1.44 billion for 9m22 and $0.28 billion for 9m19.

Net profit increased to 0.77 billion (+ 158% YoY), for 9m24 - 1.16 billion, for 9m23 - 0.19 billion, for 9m22 - 1.3 billion, for 9m19 - 0.17 billion.

How does AMD generate revenue? The four divisions are:

• Data Center - generates $3.55 billion for 3Q24, which is 122% higher than last year and accounts for a record 52% in the structure of all revenue vs a share of 27% in 3Q23, 29% in 3Q22 and 26% in 3Q21. Accordingly, it was from 2024 that the acceleration of the date of the centers and AI segment in AMD began.

This is the fastest growing and margin segment of the business. Three years ago, for 9m21, the total revenue was only $2.5 billion, for 9m22 - $4.4 billion, for 9m23 - $4.2 billion, and for 9m24 - $8.7 billion.

This is mainly due to a significant increase in the supply of AMD Instinct GPUs and an increase in sales of AMD EPYC processors.

AMD managed to rock AMD Instinct MI300X due to hardware modifications, drivers and infrastructure development ON to NVIDIA H100, and AMD is also deploying integration Llama from 3.2 to. Meta

AMD is expanding strategic partnerships with leading players including Dell, Google Cloud, HPE, Lenovo, Meta, Microsoft, Oracle Cloud Infrastructure, Supermicro and AI leaders Databricks, Essential AI, Fireworks AI, Luma AI and Reka AI, have introduced a wide range of solutions providing scalable enterprise AI based on AMD's latest solutions.

AMD is also expanding and improving its server and AI segment: the new AMD EPYC 9005 series processors with record performance and energy efficiency and the new generation of AMD Instinct MI325X that can compete with the latest developments. Nvidia

• The second division of Client Segment, which includes desktop, laptop processors and chipsets, has revenue of $1.89 billion, an increase of 29.5% YoY, for 9m24 - 4.7 billion vs 3.2 billion for 9m23 and 5.3 billion for 9m22.

Nothing outstanding here, there is a creeping bite of Intel's market share, but this segment itself stagnates after active expansion in 2020-2021 amid the updating of remote work.

• The gaming segment is very bad - $0.92 billion in 3q24, a decrease of 25.4% y/y, for 9m24- 2.6 billion, for 9m23 - 4.3 billion, and for 9m22 - 3.2 billion, that is, since the beginning of the year, revenue has collapsed by 40%, which is due to the crisis in PC gaming due to the lack of high-profile projects and a change in leisure format towards mobile games.

• The fourth segment is embedded and everything is terrible here. Revenue amounted to $0.46 billion, having collapsed more than three times or by 69% YoY, for 9m24 - 2 billion, for 9m23 - 4.8 billion, for 9m22 - 5.2 billion.

Embedded solutions are products designed for specific tasks and systems that are integrated into specialized equipment used in medical equipment, cars, processors for kiosks, ATMs, automation systems, etc.

AMD is bad everywhere except the server side, and specifically the AI segment. If we highlight the date of the centers, all other revenues for 9m24 amounted to 9.4 billion vs 12.3 billion for 9m23 and 13.6 billion for 9m22, i.e. a downward trend.

AI saves, it is AMD that is the main contender for removal from the Nvidia pedestal.

For 34 years of its history, AMD was able to earn only $1 billion in profit

Until 2018, AMD was unprofitable, from 1990 to 2018 the accumulated net loss amounted to $7.6 billion, and from 2018 to the 2nd quarter of 2024, the accumulated profit was only $8.8 billion, i.e. in the entire history of AMD was able to earn a little more than $1 billion!

2022

Share of business revenues in China - 22%

Revenue growth year-on-year in the first quarter - 71% (up to $5.9 billion)

2020: Revenue growth by 45%, to $9.76 billion

At the end of 2020, AMD raised $9.76 billion, which is 45% more than a year earlier. Moreover, both main divisions of the company demonstrated significant growth: AMD Computing and Graphics Business Group (processors for computers) and AMD Enterprise, Embedded and Semi-Custom (solutions for game consoles, servers and embedded systems).

The first of these divisions in 2020 registered sales at $6.43 billion against $4.71 billion a year earlier. In AMD Enterprise, Embedded and Semi-Custom, revenue during this time increased from $2.02 billion to $3.33 billion.

AMD ended 2020 with a net profit of $2.49 billion, while a year earlier profit was measured at $341 million. Profit at AMD Computing and Graphics Business Group more than doubled to $1.27 billion, while profit at AMD Enterprise, Embedded and Semi-Custom rose from $263 million to $391 million.

According to AMD, shipments of the company's desktop and laptop processors increased at a double-digit pace in 2020. Ryzen mobile solutions have been installed in more than 100 new laptop models.

As noted by AMD CEO Lisa Su, the volume of the global PC market in 2020 grew by 13%, exceeding 300 million units for the first time since 2014. This allowed AMD to increase revenue from the sale of processors in the client segment by one and a half times, this figure in absolute terms reached a record value for the year.

The average cost of AMD processors has decreased due to an increase in the share of cheaper Ryzen mobile solutions. In the graphics market, the average price tag, on the contrary, has grown.

AMD capital expenditures in 2020 amounted to $294 million against $217 million a year earlier. The company's total debts decreased from $486 million to $330 million.^[1]

2019: Record revenue thanks to PC and server processors

In 2019, AMD's revenue reached a record $6.73 billion, an increase of 4% compared to the previous year. This rise was facilitated by the growing sales of Ryzen and Epyc processors. But the US company's revenues could have been higher had it not been for the decline in demand for chips for game consoles.

AMD Computing and Graphics Business Group, which, in particular, is responsible for the production and sale of chips for PCs and tablets, recorded a turnover of $4.71 billion in 2019, which is 14% higher than a year ago. In the structure of Enterprise, Embedded and Semi-Custom, which develops chips for servers, embedded systems and game consoles, annual revenue sank by the same 14% and amounted to $2 billion.

The decline of the division is due to the fact that gamers stop buying game consoles Xbox One from Microsoft and PlayStation 4 from, Sony since both are considered outdated. The new generation consoles are expected to be released in 2020 and will be equipped with AMD chips.

According to AMD CEO Lisa Su, if you exclude components for consoles from the factors affecting revenue growth in 2019, then in all other areas it increased by about 20%.

AMD's net profit in 2019 was $341 million, slightly increasing compared to the previous year ($337 million).

Profit at AMD Computing and Graphics Business Group was $577 million, up 23% from 2018. In Enterprise, Embedded and Semi-Custom, profit increased by 61% to $263 million.

In its financial statements, AMD noted that by the end of 2019, the company had accumulated $1.5 billion in cash - this result was the highest since the third quarter of 2006.^[2]

2018: Revenue growth 23% to $6.48 billion

AMD finished 2018 with sales of $6.48 billion, which is 23% more than the previous year.

At AMD Computing and Graphics Business Group, which is responsible for the development and sale of computer central and GPUs , annual sales reached $4.13 billion against $2.98 billion a year earlier. The rise was due to high demand for Ryzen processors and graphics solutions for data center equipment.

AMD Enterprise, Embedded and Semi-Custom Business Group, which oversees the release of chips for servers, embedded systems and game consoles, had revenue of $2.35 billion in 2018. In 2017, it was measured at $2.28 billion.

If 2017 turned out to be unprofitable for AMD (in the report for 2018 the financial year includes losses of $33 million, although at the beginning of 2018 it was reported about $43 million in profit in 2017), then a year later the American microprocessor manufacturer made a profit of $337 million.

Profit at AMD Computing and Graphics Business Group in 2018 amounted to $470 million, a significant increase compared to a year ago at $92 million (also profit). Profit at AMD Enterprise, Embedded and Semi-Custom Business Group for the year increased from $132 million to $163 million.

Judging by the financial results, sales of EPYC server processors do not yet generate large revenues for the company, only compensating for the drop in demand for hybrid chips for game consoles.

By December 31, 2018, AMD's own cash and cash equivalents amounted to $1.16 billion, down slightly from the previous year ($1.18 billion). The flow of free cash in 2018 turned out to be negative (- $129 million) due to large stocks of unsold chips^[3]

On the day of publication of the financial statements - January 29, 2019 - AMD quotes jumped by more than 9% in electronic trading after the exchange closed. In 2018, the chipmaker's securities rose 73%, one of the best results in the S&P 500 index.

2017:25% revenue growth and return to profit

In 2017, AMD's revenue jumped 25%, reaching $5.33 billion, largely due to strong sales of GPUs for computers and data center equipment.

The American chipmaker ended 2017 with a net profit, recording it at $43 million, while in 2016 there were equal $497 million losses. AMD incurred one-time expenses of $18 million in connection with the tax reform in the United States, which is a fairly small amount compared to the costs of other technology companies.

AMD Computing and Graphics Business Group, responsible for the development and sale of computer central and GPUs , received annual revenue of more than $3 billion against $2 billion in 2016. Losses of $238 million recorded in this structure in 2016 were replaced by a profit of $147 million a year later.

The financial rise of AMD Computing and Graphics Business Group has been helped by a cryptocurrency boom that is spurring graphics sales. In addition, the company noted strong demand for Ryzen desktop processors. At the same time, in 2017, the global PC market again showed a decline.

In 2017, the turnover of AMD Enterprise, Embedded and Semi-Custom Business Group, which oversees the production of chips for servers, embedded systems and game consoles, remained practically unchanged at $2.3 billion. At the same time, profit almost halved - from 283 to 154 million dollars.

As part of the financial report, AMD warned that measures to address critical vulnerabilities in the company's processors could be costly or even ineffective. The company acknowledged the existence of a vulnerability called Spectre in its own processors and announced plans to release updates that eliminate these bugs. What costs AMD will cost this incident is not specified.^[4]

2016: Losses of $497 million at the end of the year

On January 31, 2017, AMD released its annual financial statement. The company's losses decreased by 25% due to the stabilization of the computer market and strong sales of graphics solutions.

In 2016, AMD raised $4.27 billion, up 7% from a year earlier. Net losses during this time decreased to $497 million from $660 million.

AMD's financial position has improved due to the gradual recovery of the computer industry. According to IDC analysts, in October-December 2016, global shipments of desktops, laptops and workstations decreased by only 1.5%, while three months earlier there was a 3.9% decline. Experts say the market is stabilizing.

Earlier, Intel reported earnings above Wall Street expectations and linked strong results to the stabilization of the computer industry.

In 2016, AMD Computing and Graphics Business Group, responsible for the development and sale of computer central and GPUs, received revenue of almost $2 billion against $1.8 billion a year earlier. Operating losses in this business more than halved, from $502 million to $238 million.

AMD Enterprise, Embedded and Semi-Custom Business Group, which oversees the release of chips for servers, embedded systems and game consoles, recorded revenue of $2.3 billion in 2016. In 2015, the indicator was measured at $2.2 billion. Operating profit in this group increased to $283 million from $215 million.

According to AMD's forecast, in the first quarter of 2017, the company's revenue will fall by about 11% plus or minus 3 percentage points compared to the previous three months, amounting to $954.6 million to $1.02 billion. Analysts polled by Thomson Reuters expect sales at $964 million.

On the day of the publication of the annual report, AMD quotes rose 4.5%. Over the previous 12 months, the company's shares have risen in price by more than 370%.^[5]

2015:28% drop in revenue

On January 19, 2016, AMD released its annual financial statement. The American semiconductor company's revenue fell 28% due to weak sales of computer processors.

In 2015, AMD sales amounted to $3.99 billion against $5.51 billion a year earlier. The net loss during this time increased to $660 million from $430 million. The company's financial downturn is largely due to the fall in the desktop and laptop chip market.

AMD Computing and Graphics, which is responsible for the release of these products, recorded revenue of $1.8 billion in 2015, while in 2014 it was measured at $3.1 billion. Operating loss in this business increased by more than 6.5 times - to $502 million.

The annual revenue of the Enterprise, Embedded and Semi-Custom division, specializing in the production of server processors, single-chip custom systems and chips for embedded solutions, turned out to be $2.2 billion against $2.4 billion in 2014. Operating profit decreased from $399 million to $215 million.

AMD closed 2015 with strong results, thanks to double-digit revenue growth in the Computing and Graphics segment and record annual shipments of custom chips, reports CEO and President Lisa Su. - Although 2015 was a financially troubled year, key R&D investments and an increased focus on innovation will allow us to produce excellent products, improve financial results and increase market shares in 2016.

At the same time, in the first quarter of 2016, AMD predicts a decrease in revenue by 14% plus or minus 3% compared to the previous three months. Wall Street predicts a 3 percent decline in turnover to $899 million. On the day the financial results and forecast were published, the company's shares fell in price by 6%.^[6]

2014: 5x loss growth

On January 21, 2015, AMD released its 2014 financial statement. It follows from it that the company's losses increased almost 5 times, and sales increased by 4%.^[7]

According to the released data, in 2014, AMD's net loss amounted to $403 million, or 53 cents per security of the company, against cash losses of $83 million, or 11 cents per share, a year earlier. The microprocessor manufacturer's revenue grew from $5.3 billion in 2013 to $5.51 billion a year later.

AMD losses rise 5 times due to PC chips

Operating profit of $103 million, received by AMD in 2013, was replaced by an operating loss of $155 million in 2014. The year-on-year profit rate fell 4 percentage points to 33%.

"Despite the challenges in the computer market in 2014, we made progress in diversifying the business, improving our development and balance sheet," said Lisa Su, President and CEO of AMD.

AMD's report also presents performance indicators of the company's divisions - Computing and Graphics and Enterprise, Embedded and Semi-Custom. The first of them is responsible for the development and sale of graphics solutions for consumer and professional PCs, as well as chips for computers and tablets. Another structure oversees activities related to microcircuits for servers, embedded systems and game consoles.

AMD Computing and Graphics ended 2014 with revenue of $3.1 billion versus $3.7 billion a year earlier. Operating loss slightly decreased - from $101 million to $76 million. According to Lisa Su, the company will do everything possible to return the Computing and Graphics business to growth in the second quarter of 2015.

AMD Enterprise, Embedded and Semi-Custom is already experiencing a tangible financial boost due to strong consumer demand for products using the company's high-performance graphics solutions (primarily gaming consoles). Annual revenue in this division jumped more than 50% to $2.4 billion, and operating profit - from $295 million to $399 million.

2012: Loss - $1.18 billion

AMD's loss in 2012 amounted to $1.18 billion compared to a profit of $491 million in 2011, according to the company's report. The volume of annual revenue decreased by 17% to $5.42 billion.

Revenue for the IV quarter of 2012 decreased by 32% compared to the same period in 2011 to $1.16 billion, the loss amounted to $102 million (against a profit of $138 million a year earlier).

2010: Revenue + 20%, profit + 55%

AMD's revenue in 2010 amounted to $6.49 billion. Compared to 2009, the indicator increased by 20%. Net profit increased by 55% to $471 million, profit from core activities - by 28% to $848 million. Recall that since the first quarter of 2010, the activities of Globalfoundries have not been taken into account in AMD reports. The company was established in March 2009 and included AMD production assets.

AMD revenue in the IV quarter of 2010 remained at the level of the same period in 2009 and amounted to $1.65 billion. Net profit fell more than 3 times to $375 million against $1.18 billion a year ago. Operating profit (profit from core activities) also decreased by more than 3 times - to $413 million against $1.29 billion in the IV quarter of 2009. According to IDG News Service, AMD's profit was mainly formed by royalties during this period.

AMD's Non-GAAP (non-generally accepted accounting rules) earnings per share in the 4th quarter of 2010 were 14 cents. Analysts polled by Thomson Reuters expected to see 11 cents. Revenue was also above independent forecasts, but slightly (expected value - $1.63 billion).

AMD's graphics business grew by 9% in Q4 compared to Q3, but did not show significant changes year-on-year. Revenue growth of 9% is attributed to an increase in the average selling cost of processors and an increase in seasonal demand for gaming systems.

2008: Loss of $3 billion

The share of AMD products in the global processor market in 2008 is 12%. AMD's sales are falling as demand for computer technology has declined as a result of the financial crisis. In this situation, the company is forced to take measures to optimize its costs.

AMD's net loss in 2008 was $3.098 billion versus a net loss of $3.379 billion in 2007. Revenue in 2008 was $5.808 billion versus $5.858 billion in 2007. The fourth quarter of 2008 was the ninth in a row that AMD ended in the red. The losses are mainly due to debt obligations for the acquisition of ATI Technologies in 2006.

2007: Loss of $3.4 billion

In 2007, the company lost $3.4 billion, while revenue amounted to $5.86 billion.

Notes