Advanced Micro Devices Inc · NASDAQ:AMD
Advanced Micro Devices — Q1 2025 Earnings Presentation
28 slides from Advanced Micro Devices's earnings presentation, May 6, 2025
Slide 1: AMD Financial Results First Quarter 2025
AMD Financial Results First Quarter 2025 May 6, 2025 1 | | Q1 2025 FINANCIAL RESULTS – May 6, 2025
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 future AMD products; AMD's large growth opportunities across diverse set of market
Slide 3: Our Journey
Leadership Product Portfolio Expanding Customer & Partner Ecosystem Our Journey Data Center and AI Growth Strong Financial Foundation 3 | | Q1 2025 FINANCIAL RESULTS – May 6, 2025
Slide 4: High Performance & Adaptive Computing Leadership
High Performance & Adaptive Computing Leadership Leadership Breadth and Depth Open, Proven Deep, Collaborative Foundational IP of Portfolio Software Ecosystem Partnerships Accelerating innovation in Scaling compute engines Computing partner of Delivering flexibility, silicon architecture, from Cloud
Slide 5: Large Growth Opportunities
Large Growth Opportunities Across a Diverse Set of Markets Data Center Client and Gaming Embedded Leadership performance High performance, energy Industry’s broadest portfolio and TCO across cloud, efficient and AI-enabled of adaptive and embedded enterprise and AI workloads premium PC and gaming co
Slide 6: Announced Completion of Acquisition of ZT Systems
Announced Completion of Acquisition of ZT Systems on March 31, 2025 BRINGING TOGETHER WORLD-CLASS SILICON, SOFTWARE AND SYSTEMS DESIGN TO DELIVER RACK-SCALE AI SOLUTIONS Enabling new class of Addressing significant Leadership systems Manufacturing divestiture end-to-end AMD AI data center AI acceler
Slide 7: Revenue Q1 2025
Revenue Q1 2025 Record first quarter revenue of $7.4B $7.4 billion increased 36% y/y $5.5B Revenue growth in both Data Center and Client and Gaming segments Q1 2024 Q1 2025 7 | | Q1 2025 FINANCIAL RESULTS – May 6, 2025
Slide 8: Gross Margin Q1 2025
Gross Margin Q1 2025 1 GAAP Non-GAAP 52% 54% 50% 47% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Increase in gross margin primarily driven by higher Data Center segment revenue and a richer Ryzen processor mix 1. See Appendices for GAAP to Non-GAAP reconciliation 8 | | Q1 2025 FINANCIAL RESULTS – May 6, 2025
Slide 9: Operating Income Q1 2025
Operating Income Q1 2025 1 GAAP Non-GAAP $1.8B $1.1B $0.8B $0.04B Q1 2024 Q1 2025 Q1 2024 Q1 2025 Increase in operating income driven by higher revenue in the Data Center segment and the Client and Gaming segment 1. See Appendices for GAAP to Non-GAAP reconciliation 9 | | Q1 2025 FINANCIAL RESULTS –
Slide 10: Diluted Earnings Per Share Q1 2025
Diluted Earnings Per Share Q1 2025 1 GAAP Non-GAAP $0.96 $0.62 $0.44 $0.07 Q1 2024 Q1 2025 Q1 2024 Q1 2025 • GAAP net income of $0.7 billion • Non-GAAP net income of $1.6 billion • GAAP EPS up significantly y/y, primarily driven by higher revenue and • Non-GAAP EPS up 55% y/y, primarily driven by hi
Slide 11: Q1 2025 Summary P&L | GAAP
Q1 2025 Summary P&L | GAAP $ in millions, except per share data and % Q1'25 Q1'24 Y/Y Q4'24 Q/Q Revenue $7,438 $5,473 Up 36% $7,658 Down 3% Gross Profit $3,736 $2,560 Up 46% $3,882 Down 4% Gross Margin 50% 47% Up 3 ppts 51% Down 1 ppt Operating Expenses $2,930 $2,524 Up 16% $3,011 Down 3% Operating
Slide 12: Q1 2025 Summary P&L | NON-GAAP
Q1 2025 Summary P&L | NON-GAAP1 $ in millions, except per share data and % Q1'25 Q1'24 Y/Y Q4'24 Q/Q Revenue $7,438 $5,473 Up 36% $7,658 Down 3% Gross Profit $3,992 $2,861 Up 40% $4,140 Down 4% Gross Margin 54% 52% Up 2 ppts 54% Flat Operating Expenses $2,213 $1,728 Up 28% $2,114 Up 5% Operating Exp
Slide 13: Q1 2025 Segment Results
Q1 2025 Segment Results $ in millions Q1’25 Q1’24 Y/Y Q4’24 Q/Q Data Center Net Revenue $3,674 $2,337 Up 57% $3,859 Down 5% Operating Income $932 $541 Up 72% $1,157 Down 19% Client & Gaming Net Revenue $2,941 $2,290 Up 28% $2,876 Up 2% Operating Income $496 $237 Up 109% $496 Flat Embedded Net Revenu
Slide 14: Q1 2025 Summary Balance Sheet Items
Q1 2025 Summary Balance Sheet Items $ in millions Q1’25 Q4’24 Q/Q Cash, Cash Equivalents and $7,310 $5,132 Up 42% Short-term Investments1 Accounts Receivable, Net $5,443 $6,192 Down 12% Inventories $6,416 $5,734 Up 12% Total Debt1 $4,164 $1,721 Up 142% Cash from operations $939 million; free cash fl
Slide 15: Data Center Segment Q1 2025
Data Center Segment Q1 2025 Revenue Operating Margin Strategic Highlights $3.7B 25% 23% • Partnering with Oracle to deploy a large-scale cluster $2.3B powered by MI355X accelerators and 5th Gen EPYC processors • Released ROCm 6.4 with performance and feature updates; now delivering ready to deploy i
Slide 16: Client and Gaming Segment Q1 2025
Client and Gaming Segment Q1 2025 Revenue Operating Margin Strategic Highlights $2.9B 17% Gaming $2.3B $0.6B • Launched 16-core Ryzen 9950X3D processor expanding Gaming 10% AMD leadership desktop CPU portfolio $0.9B • PC OEMs launched first notebooks powered by new Client high-end Ryzen AI Max+ and
Slide 17: Embedded Segment Q1 2025
Embedded Segment Q1 2025 Revenue Operating Margin Strategic Highlights $0.8B $0.8B 41% 40% • AWS launched new FPGA-accelerated instances powered by EPYC processors with AMD Virtex FPGAs optimized for data and compute-intensive workloads Q1 2024 Q1 2025 Q1 2024 Q1 2025 • Completed initial shipments o
Slide 18: Financial Outlook – NON-GAAP
Financial Outlook – NON-GAAP1 Q2’25 ~$7.4 Billion, Revenue +/- $300 Million ~43%, including $800M inventory charge; Gross Margin2 ~54%, excluding this one-time charge Operating Expenses ~$2.3 Billion Interest Expense/Other Income (Expense), net ~$(5) Million Effective Tax Rate ~13% of pre-tax income
Slide 19: Q1 2025 Summary
Q1 2025 Summary1 Data Center Revenue Gross Margin 50% Diluted EPS $0.44 Segment $7.4B Non-GAAP Non-GAAP Diluted Revenue $3.7B Up 36% y/y Gross Margin 54% EPS $0.96 Up 57% y/y Significant y/y Revenue and EPS Growth Driven by Higher AMD Instinct, EPYC and Ryzen Processor Sales 1. See Appendices for GA
Slide 20: Corporate Responsibility at AMD
Corporate Responsibility at AMD Environmental Social Governance Integrating corporate Advancing environmental Fostering a culture of responsibility and solutions in our products, diversity, belonging and governance across product supply chain and operations, inclusion, partnering with design, supply
Slide 21: Our Momentum
Our Momentum Expanding Data World-Class Large and Technology Strong Balance Center and AI Execution and Compelling TAM Leadership Sheet Leadership Focus DRIVING LONG-TERM SHAREHOLDER RETURNS 21 | | Q1 2025 FINANCIAL RESULTS – May 6, 2025
Slide 22: Appendices
Appendices Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin $ in millions, except % (Unaudited) Q1’25 Q1’24 Q4’24 GAAP gross profit $3,736 $2,560 $3,882 GAAP gross margin 50% 47% 51% Stock-based compensation 5 6 6 Amortization of acquisition-related intangibles 251 230 252 Inventory
Slide 23: Appendices
Appendices Reconciliation of GAAP Operating Income to Non-GAAP Operating Income $ in millions, except % (Unaudited) Q1’25 Q1’24 Q4’24 GAAP operating income $806 $36 $871 GAAP operating margin 11% 1% 11% Stock-based compensation 364 371 339 Amortization of acquisition-related intangibles 567 622 584
Slide 24: Appendices
Appendices Reconciliation of GAAP to Non-GAAP Net Income / Diluted Earnings Per Share $ in Millions, except per share data (Unaudited) Q1’25 Q1’24 Q4’24 GAAP net income / diluted earnings per share $709 $0.44 $123 $0.07 $482 $0.29 (Gains) losses on equity investments, net 2 - 3 - - - Stock-based com
Slide 25: Appendices
Appendices Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow $ in millions, except % (Unaudited) Q1’25 GAAP net cash provided by operating activities $939 Operating cash flow margin % 13% Purchases of property and equipment (212) Free cash flow $727 Free cash flow ma
Slide 26: Appendices: Share Count Overview
Appendices Share Count Overview (1) Q1’25 Q2’25 Shares (millions) Actual Estimate Basic shares 1,620 1,627 Dilutive impact from employee equity grants (2) 6 8 Diluted shares (3) 1,626 1,635 The table above provides actual share count for Q1’25 and an estimate of share count to use when calculating G
Slide 27: Endnotes
Endnotes STX-04: Based on AMD product specifications and competitive products announced as of May 2024. AMD RyzenTM 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: RyzenTM AI is de
Slide 28: | Q1 2025 FINANCIAL RESULTS – May 6, 2025
28 | | Q1 2025 FINANCIAL RESULTS – May 6, 2025
Advanced Micro Devices — Q1 2025 Earnings Presentation on 6ix