Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: impact of government actions and regulations such as export regulations, tariffs and trade protection measures, and licensing requirements; Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; Nvidia’s dominance in the graphics processing unit market and its aggressive business practices; competitive markets in which AMD’s products are sold; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; AMD's ability to introduce products on a timely basis with expected features and performance levels; loss of a significant customer; economic and market uncertainty; 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 generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; 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; long-term impact of climate change on AMD’s business; 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; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes, the revolving credit agreement and the ZT Systems credit agreement; impact of acquisitions, joint ventures and/or strategic investments on AMD’s business and AMD’s ability to integrate acquired businesses, including ZT Systems; AMD’s ability to sell the ZT Systems manufacturing business; impact of any impairment of the combined company’s assets; 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.
AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(in millions, except per share data) (Unaudited) Three Months Ended March 29,2025 December 28,2024 March 30,2024GAAP gross profit $3,736 $3,882 $2,560 GAAP gross margin 50% 51% 47%Stock-based compensation 5 6 6 Amortization of acquisition-related intangibles 251 252 230 Inventory loss at contract manufacturer (2) — — 65 Non-GAAP gross profit $3,992 $4,140 $2,861 Non-GAAP gross margin 54% 54% 52% GAAP operating expenses (4) $2,930 $3,011 $2,524 GAAP operating expenses/revenue % 39% 39% 46%Stock-based compensation 359 333 365 Amortization of acquisition-related intangibles 316 332 392 Acquisition-related and other costs (1) 42 46 39 Restructuring charges (3) — 186 — Non-GAAP operating expenses (4) $2,213 $2,114 $1,728 Non-GAAP operating expenses/revenue % 30% 28% 32% GAAP operating income $806 $871 $36 GAAP operating margin 11% 11% 1%Stock-based compensation 364 339 371 Amortization of acquisition-related intangibles 567 584 622 Acquisition-related and other costs (1) 42 46 39 Inventory loss at contract manufacturer (2) — — 65 Restructuring charges (3) — 186 — Non-GAAP operating income $1,779 $2,026 $1,133 Non-GAAP operating margin 24% 26% 21% Three Months Ended March 29,2025 December 28,2024 March 30,2024GAAP net income / earnings per share $709 $0.44 $482 $0.29 $123 $0.07 (Gains) losses on equity investments, net 2 — — — 3 — Stock-based compensation 364 0.22 339 0.21 371 0.23 Equity income in investee (7) — (12) (0.01) (7) — Amortization of acquisition-related intangibles 567 0.35 584 0.36 622 0.38 Acquisition-related and other costs (1) 42 0.03 46 0.03 39 0.02 Inventory loss at contract manufacturer (2) — — — — 65 0.04 Restructuring charges (3) — — 186 0.11 — — Income tax provision (111) (0.08) 152 0.10 (203) (0.12)Non-GAAP net income / earnings per share $1,566 $0.96 $1,777 $1.09 $1,013 $0.62 (1) Acquisition-related and other costs primarily include transaction costs, purchase price fair value adjustments, certain compensation charges, contract termination costs and workforce rebalancing charges.(2) Inventory loss at contract manufacturer is related to an incident at a third-party contract manufacturing facility.(3) Restructuring charges are related to the 2024 Restructuring Plan which comprised of employee severance charges and non-cash asset impairments.(4) Effective first quarter of 2025, licensing gain amounts were reclassified against Marketing, general and administrative expenses as the amounts were immaterial.
Cautionary StatementThis press release contains forward-looking statements concerning Advanced Micro Devices, Inc.(AMD) such as, the features, functionality, performance, availability, timing and expected benefits of future AMD products; AMD’s ability to deliver strong growth in 2025 based on AMD’s differentiated product portfolio and consistent execution; AMD’s ability to position itself for long-term growth and value creation; potential benefits of the acquisition of ZT Systems, including the data center AI accelerator opportunity in 2028; AMD’s expected second quarter 2025 financial outlook, including revenue and non-GAAP gross margin; and the expected impact of the new export licensing requirement on AMD, including on its revenues, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
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