amd-20240629

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 June 29, 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 July 24, 2024: 1,618,481,845

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 (Loss)	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	19
Item 3	Quantitative and Qualitative Disclosures about Market Risk	26
Item 4	Controls and Procedures	26
Part II Other Information

Item 1	Legal Proceedings	27
Item 1A	Risk Factors	27
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 5	Other Information	53
Item 6	Exhibits	54
Signature		55

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PART I. FINANCIAL INFORMATION


ITEM 1.			CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended				Six Months Ended
	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
	(In millions, except per share amounts)
Net revenue	$	5,835	$	5,359	$	11,308	$	10,712
Cost of sales	2,740		2,704		5,423		5,393
Amortization of acquisition-related intangibles	231		212		461		517
Total cost of sales	2,971		2,916		5,884		5,910
Gross profit	2,864		2,443		5,424		4,802

Research and development	1,583		1,443		3,108		2,854
Marketing, general and administrative	650		547		1,270		1,132
Amortization of acquisition-related intangibles	372		481		764		999
Licensing gain	(10)		(8)		(23)		(18)
Operating income (loss)	269		(20)		305		(165)

Interest expense	(25)		(28)		(50)		(53)
Other income (expense), net	55		46		108		89
Income (loss) before income taxes and equity income	299		(2)		363		(129)

Income tax provision (benefit)	41		(23)		(11)		(10)
Equity income in investee	7		6		14		7
Net income (loss)	$	265	$	27	$	388	$	(112)

Earnings (loss) per share
Basic	$	0.16	$	0.02	$	0.24	$	(0.07)
Diluted	$	0.16	$	0.02	$	0.24	$	(0.07)
Shares used in per share calculation
Basic	1,618		1,612		1,617		1,612
Diluted	1,637		1,627		1,638		1,612

See accompanying notes.

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Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)


	Three Months Ended				Six Months Ended
	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
	(In millions)
Net income (loss)	$	265	$	27	$	388	$	(112)
Other comprehensive income (loss), net of tax:
Net change in unrealized gains (losses) on cash flow hedges	(1)		(11)		(19)		9
Total comprehensive income (loss)	$	264	$	16	$	369	$	(103)

See accompanying notes.

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Advanced Micro Devices, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)


	June 29, 2024		December 30, 2023
	(In millions, except par value amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	4,113	$	3,933
Short-term investments	1,227		1,840
Accounts receivable, net	5,749		5,376
Inventories	4,991		4,351
Receivables from related parties	24		9
Prepaid expenses and other current assets	1,361		1,259
Total current assets	17,465		16,768
Property and equipment, net	1,666		1,589
Operating lease right-of-use assets	635		633
Goodwill	24,262		24,262
Acquisition-related intangibles, net	20,138		21,363
Investment: equity method	113		99
Deferred tax assets	617		366
Other non-current assets	2,990		2,805
Total assets	$	67,886	$	67,885
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,699	$	2,055
Payables to related parties	420		363
Accrued liabilities	3,629		3,082
Current portion of long-term debt, net	—		751
Other current liabilities	447		438
Total current liabilities	6,195		6,689
Long-term debt, net of current portion	1,719		1,717
Long-term operating lease liabilities	526		535
Deferred tax liabilities	1,192		1,202
Other long-term liabilities	1,716		1,850
Commitments and contingencies (See Note 12)
Stockholders’ equity:
Capital stock:
Common stock, par value $0.01; shares authorized: 2,250; shares issued: 1,668 and 1,663; shares outstanding: 1,618 and 1,616	17		17
Additional paid-in capital	60,542		59,676
Treasury stock, at cost (shares held: 50 and 47)	(5,103)		(4,514)
Retained earnings	1,111		723
Accumulated other comprehensive loss	(29)		(10)
Total stockholders’ equity	56,538		55,892
Total liabilities and stockholders’ equity	$	67,886	$	67,885

See accompanying notes.

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Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
	June 29, 2024		July 1, 2023
	(In millions)
Cash flows from operating activities:
Net income (loss)	$	388	$	(112)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,553		1,831
Stock-based compensation	717		657
Amortization of operating lease right-of-use assets	52		48
Deferred income taxes	(256)		(582)
Inventory loss at contract manufacturer	65		—
Other	(37)		(8)
Changes in operating assets and liabilities
Accounts receivable, net	(373)		(186)
Inventories	(710)		(796)
Prepaid expenses and other assets	(234)		(237)
Receivables from and payables to related parties, net	42		(150)
Accounts payable	(356)		309
Accrued and other liabilities	263		91
Net cash provided by operating activities	1,114		865
Cash flows from investing activities:
Purchases of property and equipment	(296)		(283)
Purchases of short-term investments	(565)		(2,816)
Proceeds from maturity of short-term investments	1,202		1,171
Proceeds from sale of short-term investments	2		248
Other	(92)		5
Net cash provided by (used in) investing activities	251		(1,675)
Cash flows from financing activities:
Repayment of debt	(750)		—
Proceeds from sales of common stock through employee equity plans	148		144
Repurchases of common stock	(356)		(241)
Common stock repurchases for tax withholding on employee equity plans	(226)		(87)
Other	(1)		—
Net cash used in financing activities	(1,185)		(184)
Net increase (decrease) in cash and cash equivalents	180		(994)
Cash and cash equivalents at beginning of period	3,933		4,835
Cash and cash equivalents at end of period	$	4,113	$	3,841

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Advanced Micro Devices, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited)
	Six Months Ended
	June 29, 2024		July 1, 2023
	(In millions)
Supplemental cash flow information:
Cash paid for taxes, net of refunds	$	311	$	46
Non-cash investing and financing activities:
Purchases of property and equipment, accrued but not paid	$	110	$	99
Non-cash activities for leases:
Operating lease right-of-use assets acquired by assuming related liabilities	$	53	$	50

See accompanying notes.

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