Where does AMD make its money?
Revenue From Business Segments
AMD's performance as a company
In Q1 2024, revenue of just under $5.5 billion rose by only 2% compared with the previous year. Still, AMD reported a $123 million profit in Q1, up from a $139 million loss one year prior.
Advanced Micro Devices (AMD) is a semiconductor company, known for designing and developing computer processors and graphics technologies.
Taiwan Semiconductor Manufacturing Co. (TSMC) makes all of AMD's most advanced chips in, you guessed it, Taiwan. While not a household name, the company is one of the world's top ten most valuable companies, manufacturing components for the advanced F-35 and NASA's Perseverance Rover mission to Mars.
See how Advanced Micro Devices compares to similar products. Advanced Micro Devices's top competitors include Arm, Xilinx, and Broadcom (acquired by Avago Technologies). Arm designs and manufactures semiconductor products for Artificial Intelligence, security, 5G network infrastructure, cloud computing, and many more.
Revenue From Business Segments
AMD has four reportable business segments: Data Center, Client, Gaming, and Embedded. The company also has an All Other category, which is not a reportable segment and primarily includes employee-stock-based compensation expenses and acquisition-related costs.
Computing and Graphics
The company serves this segment with its CPU, GPU, APU, system-on-chip and chipset product offerings. The Computing and Graphics segment is the major source of revenue for AMD Inc during Q1 2021 and contributes $2.10 billion, making up about 61% of the total earnings.
| Name | Equities | % |
|---|---|---|
| Vanguard Fiduciary Trust Co. 8.958 % | 144,794,666 | 8.958 % |
| BlackRock Advisors LLC 5.901 % | 95,384,539 | 5.901 % |
| STATE STREET CORPORATION 4.194 % | 67,780,610 | 4.194 % |
| JPMorgan Investment Management, Inc. 2.404 % | 38,850,008 | 2.404 % |
Looking closely at institutions (Mutual Funds and Other Institutional Investors), Vanguard owns the most significant stake in AMD stock. This is followed by Vanguard Index Funds, which holds an 8.04% stake in the company.
AMD has announced three major customers for its AI chips—Microsoft, Meta Platforms, and Oracle.
Does AMD rely on Taiwan?
STRONG PARTNERSHIP: Taiwan is very important to the semiconductor ecosystem and AMD does a lot of manufacturing here with key suppliers, CEO Lisa Su said.
US-made processors from Intel and AMD will be phased out of government PCs and servers under new guidelines from the Chinese government and replaced with hardware made in China.
In the comparison of AMD vs. Intel, both companies offer a wide range of processors that cater to different needs and budgets. Intel currently holds the lead in overall performance and value, while AMD excels in power efficiency and specialized gaming CPUs.
Sony became AMD's largest customer in 2022 – the PlayStation maker brought $3.776 billion to AMD, or 16% of AMD's revenue as PlayStation 5 outperformed its competitors last year.
AMD's Client segment, which generated $4.7 billion in revenue in 2023, includes AMD Ryzen chips, components found in desktop and notebook PCs. The Gaming segment, generating $6.2 billion in revenue, includes AMD Radeon chips and semi-custom game console products.
Share of Intel and AMD x86 computer CPUs worldwide 2012-2024, by quarter. In the second quarter of 2024, 64 percent of x86 computer processor or CPU tests recorded were from Intel processors, while 33 percent were AMD processors.
What Is Advanced Micro Devices's Net Debt? As you can see below, Advanced Micro Devices had US$2.47b of debt, at December 2023, which is about the same as the year before. You can click the chart for greater detail. But it also has US$5.77b in cash to offset that, meaning it has US$3.31b net cash.
The company sells these products for both desktops and notebooks. Enterprise, Embedded & Semi-Custom : includes revenue from the sale of embedded processors, semi-custom System-on-Chip (SoC) products, development services and technology for game consoles, and server microprocessors.
Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Jpmorgan Chase & Co, Fmr Llc, Austin Private Wealth, LLC, Geode Capital Management, Llc, and Invesco Qqq Trust, Series 1 .
How much of AMD revenue is from China?
China Is A Huge Market For Intel, AMD
China, specifically, accounted for 27 percent of Intel's total $54.2 billion in revenue last year. Looking at AMD, approximately 15 percent of AMD's total revenue of $22.7 billion in 2023 came via China.
AMD vs Nvidia: Fundamentals
Meanwhile, Nvidia boasts a net profit margin in excess of 26% and a return on equity (ROE) of 34.2% in Q2 of 2017. AMD saw its revenue decline by 40% from the year 2011 – 2015, while Nvidia's sales increased by more than one-third during the same period.
Advanced Micro Devices is not owned by hedge funds. The Vanguard Group, Inc. is currently the largest shareholder, with 8.8% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 7.7% of common stock, and State Street Global Advisors, Inc. holds about 4.1% of the company stock.
Total debt on the balance sheet as of March 2024 : $2.99 B
According to AMD's latest financial reports the company's total debt is $2.99 B. A company's total debt is the sum of all current and non-current debts.
Advanced Micro Devices, Inc.
(AMD) is an American multinational corporation and semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets.
