Advanced Micro Devices Inc. (AMD) has released its financial results for the first quarter of 2024, showcasing resilience and growth in key areas. The company reported net revenue of $5.5 billion, marking a 2% increase from the same period last year. This growth has been fueled by strong performances in the Data Center and Client segments, despite challenges in the Gaming and Embedded sectors.

1. Financial Highlights

The results for Q1 2024 demonstrate AMD's ability to adapt and thrive in a competitive semiconductor landscape. Here are the key highlights:

Net Revenue: $5.5 billion, up from $5.35 billion in Q1 2023.

Net Income: $123 million compared to a loss of $139 million in the prior year.

Gross Margin: Improved to 47% from 44% year-on-year.

Operating Income: $36 million, a significant turnaround from an operating loss of $145 million in Q1 2023.

Income Statement of Advanced Micro Devices Inc

	May 2023	May 2024
Net Income	395M	1.11B
Profit	383M	1.09B
Net Income Continuing	383M	1.09B
Income Tax Expense	-222M	-411M
Pretax Income	161M	683M
Non-operating Income	-7M	101M
Operating Income	168M	582M
Revenue	23.06B	22.8B
Costs and Expenses	22.63B	22.21B
Cost of Revenue	12.92B	12.13B
Operating Expenses	9.70B	10.07B
Depreciation, Depletion & Amortization	-479M	0
Research & Development	5.35B	5.98B
Selling, General & Administrative	2.32B	2.38B
Other Operating Expenses	2.50B	1.70B

Segment Performance

Data Center

The Data Center segment has been a standout performer, achieving net revenue of $2.3 billion—an impressive 80% increase from the prior year. This growth is largely attributed to the success of AMD Instinct GPUs and the 4th Gen AMD EPYC CPUs. Operating income for this segment soared to $541 million, up from $148 million a year earlier.

Client

The Client segment also showed a robust performance with net revenue reaching $1.4 billion, an 85% increase year-on-year. The rise was driven by a 58% increase in unit shipments and a 16% increase in the average selling price of Ryzen processors. The segment returned to profitability with an operating income of $86 million, compared to an operating loss of $172 million in Q1 2023.

Gaming

Conversely, the Gaming segment faced challenges, reporting revenue of $922 million—a decrease of 48% compared to the previous year, attributed to lower Radeon GPU sales and semi-custom revenue. Operating income for this segment fell to $151 million from $314 million.

Embedded

The Embedded segment also experienced a decline, with net revenue of $846 million, down 46% year-over-year. The decrease was linked to customers managing their inventory levels, resulting in an operating income of $342 million, down from $798 million.

2. Geographic Insights

International sales accounted for 60% of AMD's net revenue during Q1 2024, a slight decline from 68% in the previous year. This trend highlights the continued significance of international markets for AMD's growth strategy.

3. Cash Flow and Liquidity

AMD's cash position improved, with cash, cash equivalents, and short-term investments totaling $6.0 billion as of March 30, 2024, up from $5.8 billion at the end of 2023. The company generated $521 million in cash from operating activities, underscoring its improved operational efficiency.

Cash Flow Statement of Advanced Micro Devices Inc

	May 2023	May 2024
Net Change in Cash	-915M	365M
Net Cash from Operating Activities	3.05B	1.70B
Operating Profit	395M	1.11B
Adjustment to Operating Profit	2.66B	586M
Net Cash from Investing Activities	-2.39B	-321M
Business & Interest in Affiliates	1.54B	131M
Investments	306M	-360M
Productive Assets	537M	530M
Other Investing Activities	-9M	-20M
Net Cash from Financing Activities	-1.57B	-1.01B
Debt	679M	0
Equity Issuance/Repurchase	-1.86B	-478M
Other Financing Activities	-393M	-538M

4. Balance Sheet Overview

As of March 30, 2024, AMD's total assets stood at $67.89 billion, compared to $67.63 billion a year earlier. The company's total liabilities decreased to $9.39 billion from $10.68 billion, while total equity rose to $56.19 billion from $54.69 billion.

Balance Sheet of Advanced Micro Devices Inc

	May 2023	May 2024
Total Assets	67.63B	67.89B
Total Current Assets	15.65B	17.08B
Cash and Equivalents	3.82B	4.19B
Short-term Investments	2.11B	1.84B
Net Inventories	4.23B	4.65B
Accounts Receivable	4.04B	5.03B
Prepaid Expenses	1.44B	1.32B
Other Current Assets	2M	0
Total Non-current Assets	51.97B	50.81B
Intangible Assets	47.46B	45.00B
Long-term Investments	84M	106M
Non-current Deferred Tax Assets	67M	433M
Net PP&E	1.5B	1.62B
Lease Assets	447M	632M
Other Non-current Assets	2.41B	3.01B
Total Liabilities and Equity	67.63B	67.89B
Other Equity and Liabilities	2.25B	2.30B
Total Liabilities	10.68B	9.39B
Total Current Liabilities	6.57B	6.47B
Accounts Payable and Accrued Liabilities	5.68B	4.86B
Current Debt	0	750M
Other Current Liabilities	892M	862M
Total Non-current Liabilities	4.10B	2.91B
Long-term Debt	2.46B	1.71B
Non-current Deferred Tax Liabilities	1.64B	1.19B
Total Equity and Non-controlling Interests	54.69B	56.19B
Total Equity	54.69B	56.19B

5. Conclusion

AMD's Q1 2024 results reflect a strong recovery and growth trajectory, particularly in its Data Center and Client segments. The company's ability to innovate—evident through the release of the Ryzen 8000 Series processors—combined with improved operational metrics, positions AMD favorably in the competitive semiconductor market. As the company navigates the challenges in Gaming and Embedded segments, its focus on high-performance computing and visualization solutions continues to drive its success in a rapidly evolving industry landscape.

Original filing: sec.gov