Slide 1: AMD Second Quarter 2024 Financial Results
AMD Second Quarter 2024 FINANCIAL RESULTS July 30, 2024
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD), such as the features, functionality, performance, availability, timing and expected benefits of AMD products; AMD being uniquely positioned in AI; AMD’s expected third quarter 20
Slide 3: Our Journey
OUR JOURNEY Leadership Expanding Customer Data Center Strong Product Portfolio & Partner Ecosystem and AI Growth Financial Foundation 33 Q2 2024 FINANCIAL RESULTS – JULY 30, 2024
Slide 4: Technology Leadership
TECHNOLOGY LEADERSHIP Broad IP Portfolio Advanced Technology Data Center Leadership Software Enablement Executing leadership CPU, Accelerating innovation in Delivering innovation in Open, proven software GPU, NPU, DPU, FPGA, silicon architecture, advanced AI, cloud, enterprise and optimized for perf
Slide 5: End-to-End Compute Infrastructure
END-TO-END COMPUTE INFRASTRUCTURE Data Center Client Gaming Embedded Broad portfolio of data center Powerful and efficient CPUs Top-to-bottom desktop and Leadership FPGAs, and AI solutions with server and APUs for notebook and notebook GPUs, game console Adaptive SoCs and SoMs, and CPUs, GPUs, FPGAs
Slide 6: AMD Is Uniquely Positioned in AI
AMD IS UNIQUELY POSITIONED IN AI Cloud HPC Enterprise PC Embedded Leadership accelerator World’s first data center Broad ecosystem of OEM The world’s most powerful Single chip intelligence at the for generative AI, LLMs APU for HPC and AI and solution partners NPU for next-gen AI PC edge for all emb
Slide 7: AI and High-Performance Leadership
Announced at Computex 2024 AI AND HIGH-PERFORMANCE LEADERSHIP AMD Ryzen 9000 Series AMD Ryzen AI 300 Series AMD Instinct Accelerators 5th Gen AMD EPYC Versal AI Edge Gen 2 Powerful desktop processors Industry-leading TOPs for Annual cadence of leadership Leadership performance Highly performant sing
Slide 8: Revenue Q2 2024
REVENUE Q2 2024 $5.8B ▪ Revenue of $5.8 billion increased 9% y/y $5.4B ▪ Revenue growth in Data Center and Client segments partially offset by lower revenue in Gaming and Embedded segments Q2 2023 Q2 2024 8 Q2 2024 FINANCIAL RESULTS – JULY 30, 2024
Slide 9: Gross Margin Q2 2024
GROSS MARGIN Q2 2024 GAAP Non-GAAP1 53% 49% 50% 46% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Increase in both GAAP and non-GAAP gross margin primarily driven by higher Data Center revenue 1. See Appendices for GAAP to Non-GAAP reconciliation 9 Q2 2024 FINANCIAL RESULTS – JULY 30, 2024
Slide 10: Operating Income (Loss) Q2 2024
OPERATING INCOME (LOSS) Q2 2024 GAAP Non-GAAP1 $1.26B $1.07B $0.27B $(0.02)B Q2 2023 Q2 2024 Q2 2023 Q2 2024 ▪ Increase driven by higher revenue and gross margin and ▪ Increase driven by higher revenue and gross margin, lower amortization of acquisition-related intangible partially offset by increas
Slide 11: Earnings Per Share Q2 2024
EARNINGS PER SHARE Q2 2024 GAAP Non-GAAP1 $0.69 $0.58 $0.16 $0.02 Q2 2023 Q2 2024 Q2 2023 Q2 2024 ▪ GAAP net income of $265 million ▪ Non-GAAP net income of $1.1 billion ▪ GAAP EPS of $0.16 primarily driven by higher ▪ Non-GAAP EPS of $0.69, up 19%, primarily driven by revenue and gross margin and l
Slide 12: Q2 2024 Summary P&L | GAAP
Q2 2024 SUMMARY P&L | GAAP $ in millions, except per share data and % Q2’24 Q2’23 Y/Y Q1’24 Q/Q Revenue $5,835 $5,359 Up 9% $5,473 Up 7% Gross Profit $2,864 $2,443 Up 17% $2,560 Up 12% Gross Margin 49% 46% Up 3 ppts 47% Up 2 ppts Operating Expenses $2,605 $2,471 Up 5% $2,537 Up 3% Operating Expense/
Slide 13: Q2 2024 Summary P&L | Non-GAAP
1 Q2 2024 SUMMARY P&L | NON-GAAP $ in millions, except per share data and % Q2’24 Q2’23 Y/Y Q1’24 Q/Q Revenue $5,835 $5,359 Up 9% $5,473 Up 7% Gross Profit $3,101 $2,665 Up 16% $2,861 Up 8% Gross Margin 53% 50% Up 3 ppts 52% Up 1 ppt Operating Expenses $1,847 $1,605 Up 15% $1,741 Up 6% Operating Exp
Slide 14: Q2 2024 Summary Balance Sheet Items
Q2 2024 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q2’24 Q1’24 Q/Q Cash, Cash Equivalents and $5,340 $6,035 Down 12% Short-term Investments Accounts Receivable, Net $5,749 $5,038 Up 14% Inventories $4,991 $4,652 Up 7% Total Debt $1,719 $2,468 Down 30% 14 Q2 2024 FINANCIAL RESULTS – JULY 30, 2024
Slide 15: Q2 2024 Segment Results
Q2 2024 SEGMENT RESULTS ($ in millions) Q2’24 Q2’23 Y/Y Q1’24 Q/Q Data Center Net Revenue $2,834 $1,321 Up 115% $2,337 Up 21% Operating Income $743 $147 Up 405% $541 Up 37% Client Net Revenue $1,492 $998 Up 49% $1,368 Up 9% Operating Income (Loss) $89 $(69) Up 229% $86 Up 3% Gaming Net Revenue $648
Slide 16: Data Center Segment Q2 2024
DATA CENTER SEGMENT Q2 2024 Revenue Operating Margin $2.8B 26% Strategic Highlights ▪ Unveiled expanded AMD Instinct accelerator roadmap bringing an annual cadence of AI $1.3B 11% leadership performance and memory capabilities. ▪ Microsoft announced general availability of Azure ND MI300X V5 instanc
Slide 17: Client Segment Q2 2024
CLIENT SEGMENT Q2 2024 Revenue Operating Margin $1.5B Strategic Highlights $1.0B 6% ▪ Announced AMD Ryzen AI 300 Series processors, the 3rd Gen AMD processor for AI PCs, with (7)% industry-leading 50 TOPs of AI processing power for Windows Copilot+ PCs. ▪ Announced AMD Ryzen 9000 Series processors Q
Slide 18: Gaming Segment Q2 2024
GAMING SEGMENT Q2 2024 Revenue Operating Margin 14% $1.6B Strategic Highlights 12% ▪ Launched Radeon PRO W7900 Dual Slot GPU for high-performance AI workstations. $0.6B ▪ Expanded AMD ROCm 6.1.3 software support to enhance AI development and deployment with select AMD Radeon desktop GPUs. Q2 2023 Q2
Slide 19: Embedded Segment Q2 2024
EMBEDDED SEGMENT Q2 2024 Revenue Operating Margin $1.5B 52% Strategic Highlights 40% ▪ Announced AlveoTM V80 accelerators delivering $0.9B leadership capabilities in memory intensive workloads. ▪ Entered early access on next generation edge AI solutions with more than 30 key partners on second Gen V
Slide 20: Financial Outlook – Non-GAAP
FINANCIAL OUTLOOK – NON-GAAP 1 ($ in millions) Q3’24 ~$6.7 Billion, Revenue +/- $300 Million Gross Margin ~53.5% Operating Expenses ~$1.9 Billion Effective Tax Rate ~13% of pre-tax income Diluted Share Count² ~1.64 Billion shares 1. 1. See Cautionary Statement on Slide 2. These forward-looking outlo
Slide 21: Q2 2024 Summary
1 Q2 2024 SUMMARY Revenue Data Center Segment Gross Margin 49% EPS $0.16 $5.8B Revenue $2.8B Non-GAAP Non-GAAP EPS $0.69 Up 9% y/y Up 115% y/y Gross Margin 53% RECORD DATA CENTER SEGMENT REVENUE DRIVEN BY AMD INSTINCT GPUS AND 4TH GEN AMD EPYC CPUS 21 21 Q2 2024 FINANCIAL RESULTS – JULY 30, 2024 1.
Slide 22: Corporate Responsibility at AMD
CORPORATE RESPONSIBILITY AT AMD Environmental Social Governance Advancing environmental solutions in our Fostering a culture of diversity, belonging Integrating corporate responsibility and products, supply chain and operations, while and inclusion, partnering with suppliers and governance across pr
Slide 23: Our Momentum
OUR MOMENTUM Large and Expanding World-Class Technology Strong Compelling Data Center and Execution Leadership Balance Sheet TAM AI Leadership and Focus DRIVING LONG-TERM SHAREHOLDER RETURNS 23 23 Q2 2024 FINANCIAL RESULTS – JULY 30, 2024
Slide 24: Appendices: Reconciliation of Gross Profit and Operating Expenses
APPENDICES RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND GROSS MARGIN ($ in millions, except %) (Unaudited) Q2’24 Q2’23 Q1’24 GAAP gross profit $2,864 $2,443 $2,560 GAAP gross margin 49% 46% 47% Stock-based compensation 5 10 6 Amortization of acquisition-related intangibles 231 212 230 Acquisi
Slide 25: Appendices: Reconciliation of Operating Income
APPENDICES RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME ($ in millions, except %) (Unaudited) Q2’24 Q2’23 Q1’24 GAAP operating income (loss) $ 269 $ (20) $ 36 GAAP operating margin 5% 0% 1% Stock-based compensation 346 348 371 Amortization of acquisition-related intang
Slide 26: Appendices: Reconciliation of Net Income / EPS
APPENDICES RECONCILIATION OF GAAP TO NON-GAAP NET INCOME / EARNINGS PER SHARE (Millions, except per share data) (Unaudited) Q2’24 Q2’23 Q1’24 GAAP net income / earnings per share $ 265 $ 0.16 $ 27 $ 0.02 $ 123 $ 0.07 (Gains) losses on equity investments, net – – 3 – 3 – Stock-based compensation 346
Slide 27: Appendices: Share Count Overview
APPENDICES SHARE COUNT OVERVIEW (1) Q2’24 Q3’24 Shares (millions) Actual Estimate Basic shares 1,618 1,622 Dilutive impact from employee equity grants (2) 19 16 Diluted shares 1,637 1,638 The table above provides actual share count for Q2’24 and an estimate of share count to use when calculating GAA
Slide 28: Endnotes
ENDNOTES STX-04: Based on AMD product specifications and competitive products announced as of May 2024. AMD Ryzen AI 300 Series processors’ NPU offer up to 50 peak TOPS. AI PC is defined as a laptop PC with a processor that includes a neural processing unit (NPU). STX-04. GD-220c: Ryzen AI is define
Slide 29: AMD together we advance_
AMD«¢\ together we advance_