Advanced Micro Devices, Inc. (AMD)

Sector: Technology|Industry: Semiconductors|Market Cap: $211.21B|Employees: 26K


Advanced Micro Devices (AMD) is a global semiconductor company that designs and produces a wide range of high-performance computing and visualization products. Their core business model revolves around designing and selling microprocessors, graphics processing units (GPUs), and other related technologies to various markets, including data centers, personal computers, gaming, and embedded systems. AMD competes with Intel and Nvidia in the CPU and GPU markets and has a significant global presence.

  1. Filings
  2. Company Profile

Business Summary

Advanced Micro Devices, Inc. (AMD) is a global semiconductor company that designs and develops high-performance and adaptive computing products. Their offerings cater to diverse markets, including data centers, client computing, gaming, and embedded systems. AMD's strategy focuses on technological innovation, software development, and strategic partnerships to deliver leading-edge solutions. They emphasize a customer-centric approach and leverage their core technologies across various platforms.

Key Statistics

  • Employees: Approximately 26,000 (as of December 30, 2023)
  • Geographic Footprint: Operations in various countries across North America, Europe, Asia, and Australia
  • Headquarters: Santa Clara, California
  • Founded: 1969
  • Number of locations/facilities: Information not available in the provided text. Number of square feet of space is available.
  • Revenue: $22.7 billion (FY2023)
  • Market Capitalization: $182.9 Billion (as of June 30, 2023)
  • Key Subsidiaries/Brands: Xilinx, Pensando

Leadership

  • CEO: Dr. Lisa Su
  • CFO: Jean Hu
  • Board Chair: Information not available in the document.
  • Other Key Executives: Mark Papermaster (Executive Vice President, Chief Technology Officer)

Key Financial Metrics

  • Annual Revenue: $22.7 billion (FY2023)
  • Net Income: $854 million (FY2023)
  • Market Cap: $182.9 billion (as of June 30, 2023)
  • Total Assets: $67.9 billion (FY2023)
  • Key Financial Highlights: Revenue decreased by 4% YoY. Gross margin increased to 46% from 45%. Operating income decreased significantly to $401 million from $1.3 billion.

Products and Services

AMD offers a wide range of semiconductor products and services, categorized by target market:

  • Data Center: Server CPUs (EPYC series), GPUs (Instinct, Radeon PRO V-series), DPUs (Pensando), FPGAs, SmartNICs, AI accelerators, and Adaptive SoCs.
  • Client: CPUs (Ryzen, Athlon, Ryzen PRO, Threadripper PRO), APUs (Ryzen, Athlon), and chipsets.
  • Gaming: Discrete GPUs (Radeon), Semi-Custom SoCs (for game consoles), and game development services.
  • Embedded: Embedded CPUs (EPYC Embedded, Ryzen Embedded, Athlon), GPUs, APUs, FPGAs, Adaptive SoCs, development boards, kits, and design services.

Key Business Segments

AMD reports its financial results under four operating segments:

  • Data Center: $6.5 billion in revenue (FY2023)
  • Client: $4.7 billion in revenue (FY2023)
  • Gaming: $6.2 billion in revenue (FY2023)
  • Embedded: $5.3 billion in revenue (FY2023)

Business Strategy

AMD's business strategy revolves around driving innovation in high-performance and adaptive computing. This is achieved through five key pillars: advancing foundational technology and IP, providing competitive software and tools, re-using core technology across platforms, building ecosystems through partnerships, and implementing a customer-centric go-to-market approach. AMD aims to deliver leading products across data center, client, gaming, and embedded markets by focusing on AI capabilities, high-performance product portfolios, and world-class software platforms.

Industry Context

AMD operates in the highly competitive semiconductor industry. Key competitors include Intel Corporation and NVIDIA Corporation in various segments, including CPUs, GPUs, and the data center market. The industry is characterized by rapid technological advancements, fluctuating supply and demand, and frequent new product introductions. AMD also faces competition from smaller fabless silicon companies and internal development efforts by some customers.

Risk Factors

  • Competition: Intense competition from established players like Intel and NVIDIA, as well as emerging companies and in-house customer development, poses a significant threat to market share and profitability.
  • Market Dependence: Fluctuations in demand across the PC, gaming, and data center markets directly impact AMD's revenue streams.
  • Manufacturing Reliance: Dependence on third-party manufacturers for wafer fabrication and other production processes creates supply chain vulnerabilities and potential disruptions.
  • Security Vulnerabilities: Product security vulnerabilities could damage reputation, lead to financial losses, and impact customer relationships.
  • Intellectual Property Protection: Protecting intellectual property is crucial, and failure to do so could lead to loss of competitive advantage and legal challenges.

Last Updated

2023-12-30

(Generated from latest 10-K filing)