AMDNasdaqSemiconductors & Related DevicesUS GAAP · USD

Advanced Micro Devices, Inc

Advanced Micro Devices, Inc. (AMD) designs high-performance computing and graphics semiconductors used in servers, PCs, gaming systems, and embedded applications. The company’s portfolio spans x86 CPUs and APUs, data center GPUs and networking accelerators (DPUs/AI NICs), and programmable logic (FPGAs/adaptive SoCs) that came from acquisitions such as Xilinx and Pensando. AMD is fabless and relies on third-party manufacturing and a broad ecosystem of OEMs, ODMs, distributors, and hyperscale cloud customers to bring products to market. Its business is organized around Data Center, Client and Gaming, and Embedded, with additional acquisition-related amortization and stock-based compensation reported in “All Other.”

Revenue34.6bn USD
+34.3 %y/y
Operating profit (EBIT)3,694m USD
+94.4 %y/y
EBIT margin10.7%
+3.3 ppy/y
Net income4,335m USD
+164.2 %y/y
Free cash flow6,735m USD
+180.0 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

010203040bn USD2020: 9.8 bn USD2020: EBIT 1.4 bn USD20202021: 16.4 bn USD2021: EBIT 3.6 bn USD20212022: 23.6 bn USD2022: EBIT 1.3 bn USD20222023: 22.7 bn USD2023: EBIT 0.40 bn USD20232024: 25.8 bn USD2024: EBIT 1.9 bn USD20242025: 34.6 bn USD2025: EBIT 3.7 bn USD202534.63.7
RevenueOperating profit (EBIT)

Business

Share of revenue
Data Center45 %

Server CPUs plus GPU accelerators, DPUs/AI NICs, and FPGA/adaptive SoC products sold into cloud, enterprise, and HPC.

Client and Gaming40 %

PC CPUs/APUs and discrete graphics plus semi-custom SoCs used in game consoles and related gaming devices.

Embedded15 %

Embedded CPUs/GPUs/APUs and Xilinx-derived FPGAs, SOMs, and adaptive SoCs for industrial, automotive, aerospace/defense, and communications infrastructure.

Customers

AMD sells primarily through OEM partners (multi-nationals, regional accounts, and system integrators) that build servers, workstations, desktops, notebooks, motherboards, and game consoles incorporating AMD silicon. A substantial portion of data center products is purchased directly or indirectly by hyperscale public cloud providers and hyperscale private data centers, often via OEMs/ODMs and contract manufacturers. In Client and Gaming, demand is driven by PC OEM build plans, distributor/channel inventory dynamics, and add-in-board partners for graphics cards, alongside semi-custom wins tied to console platforms. Embedded products are sold across many end markets (e.g., aerospace and defense, automotive, industrial, healthcare, communications infrastructure) via direct sales and distributors, with design-in support and long product lifecycles shaping purchasing decisions. Some customers also engage AMD for design and development services and pay non-recurring engineering fees for differentiated solutions.

Hyperscale and cloud service providers

Purchase server CPUs and accelerators (EPYC, Instinct, DPUs/AI NICs) to run cloud services and AI workloads, often via OEM/ODM supply chains.

OEMs/ODMs and system integrators

Integrate AMD silicon into servers, PCs, workstations, and appliances; value roadmap timing, platform compatibility, and design support.

Channel partners (distributors, VARs, AIBs)

Buy CPUs/GPUs and related components to serve retail, SMB, and enthusiast markets and to build add-in graphics boards.

Embedded and industrial customers

Buy embedded CPUs/GPUs/APUs and FPGAs/adaptive SoCs for specialized systems requiring reliability, longevity, and workload-specific acceleration.

Game console and gaming device manufacturers

Source semi-custom SoCs where AMD silicon is designed into a platform and volumes depend on the success and lifecycle of the end product.

Strategy

AMD’s strategy centers on delivering timely CPU and accelerator roadmaps for data center and AI workloads while maintaining competitiveness in client PCs and gaming platforms. The company is also broadening its platform offerings beyond CPUs and GPUs into DPUs/AI NICs and programmable logic (FPGAs/adaptive SoCs) to address more of the data center system bill of materials and workload acceleration needs. Following the announced ZT Systems acquisition, AMD disclosed an intent to divest the ZT data center infrastructure manufacturing business while retaining certain IP and employees (the design business), reflecting a preference for IP- and design-led value capture rather than running a manufacturing services operation. Across segments, AMD emphasizes close co-development with customers, design support, and differentiated solutions that combine multiple AMD technologies (CPU, GPU, APU, DPU, AI NIC, FPGA).

Divest ZT Systems’ manufacturing business and retain design/IPShort term

Keeps AMD focused on semiconductor/IP value creation while reducing exposure to manufacturing services economics and execution risk.

Scale data center compute and AI accelerator portfolioMedium term

Hyperscale and enterprise AI workloads drive demand for server CPUs and accelerators; platform breadth can increase attach and wallet share.

Sustain client and gaming roadmap executionMedium term

PC and semi-custom cycles remain large revenue pools and influence ecosystem mindshare and developer support.

Geography

2025

AMD reports that international sales represented 67% of net revenue in 2025 (66% in 2024), indicating a customer base and shipment footprint that is predominantly outside the United States even though transactions are substantially denominated in U.S. dollars. The company’s end demand is tied to global PC, cloud/data center, gaming, and industrial cycles, and it sells through multinational OEMs, distributors, and hyperscale customers with worldwide deployments. As a fabless semiconductor company, AMD’s operational exposure is heavily influenced by where third-party manufacturing, substrates, and critical equipment are available, and by cross-border logistics for finished goods. Geopolitical and trade policy (e.g., U.S. export controls affecting certain data center GPU products) can directly constrain what can be shipped to specific destinations and can create inventory-related charges.

United States33 %
China22 %
Other countries (US filing)17 %
Taiwan15 %
Singapore12 %

Share of the revenue the company reports by geography.

Risks

AMD operates in markets characterized by rapid product cycles and intense competition, where delays in product introductions or inferior performance/total cost of ownership can quickly shift demand. The company identifies competitive pressure from Intel in CPUs and from Nvidia in data center GPUs, including aggressive pricing, incentives, and ecosystem effects that can compress margins and limit customer choice. As a fabless semiconductor designer, AMD is exposed to third-party manufacturing capacity, yields, and availability of essential equipment/materials/substrates, as well as to ordering and shipment uncertainties across a global supply chain. Demand is cyclical across PCs, gaming, and data center spending, and quarterly/seasonal patterns can amplify volatility in revenue and inventory. Trade restrictions and export controls can directly impact product shipments and have already led to significant inventory-related charges for certain data center GPU products.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →U.S. export controls affecting certain data center GPU products1Aggressive competitive practices by Intel in microprocessors2Nvidia dominance and proprietary software ecosystem in data center GPUs3Reliance on third-party manufacturing and supply chain availability4Semiconductor cyclicality and end-market demand swings5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. U.S. export controls affecting certain data center GPU productsImpact: CriticalLikelihood: High

    Restrictions can prevent shipments to certain destinations and can create inventory and related charges when products cannot be sold as planned.

    Exposure: Instinct MI308 data center GPU products (as disclosed)

  2. Aggressive competitive practices by Intel in microprocessorsImpact: HighLikelihood: High

    Intel’s market position enables aggressive pricing and incentives that can reduce AMD unit sales and average selling prices.

    Exposure: Client CPUs/APUs and server CPUs sold via OEMs and channel partners

  3. Nvidia dominance and proprietary software ecosystem in data center GPUsImpact: HighLikelihood: High

    Customer preference and ecosystem lock-in can limit AMD accelerator adoption and pressure margins.

    Exposure: Data center GPU accelerators and AI platforms

  4. Reliance on third-party manufacturing and supply chain availabilityImpact: HighLikelihood: High

    If partners cannot deliver sufficient quantities on competitive nodes, or if materials/substrates are constrained, AMD may miss demand windows.

    Exposure: All product lines; especially advanced-node client and data center ramps

  5. Semiconductor cyclicality and end-market demand swingsImpact: HighLikelihood: High

    PC, gaming, and data center capex cycles can cause rapid changes in orders, channel inventory, and pricing.

    Exposure: Company-wide revenue and inventory management

Accounting

Judgemental items
Business combinations (ASC 805) and intangible asset amortization

Acquisitions create identifiable intangibles and goodwill; amortization and purchase accounting can materially affect operating income and comparability.

Impact: Large amortization of acquisition-related intangibles reported in All Other

Goodwill and indefinite-lived intangible impairment testing

Fair value estimates and future cash flow assumptions can drive material non-cash impairment charges if outlook deteriorates.

Impact: Potential impairment of goodwill/intangibles from Xilinx/Pensando/Silo AI/ZT Systems

Inventory valuation and inventory-related charges

Discrete charges (e.g., from export controls) can reduce gross margin and indicate obsolescence/unsellable inventory risk.

Impact: Inventory and related charges associated with export controls on certain Instinct products

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026