Advanced Micro Devices (AMD) Financial History

We have an approved stock repurchase program that authorizes repurchases of up to $14 billion of our common stock (Repurchase Program).

Our stock price has experienced price and volume fluctuations and could be subject to wide fluctuations in the future.

Our success depends upon the continued service of numerous qualified engineering, marketing, sales and executive employees.

Our inability to continue to attract and retain key employees may hinder our business.

Any of the above risks, should they occur, could result in increased costs, shipment delays, general business interruptions, the inability to obtain, or delays in obtaining export licenses for certain technology, pena…

We maintain operations around the world, including in the United States, Canada, Europe, Australia, Latin America and Asia.

We account for certain acquisitions using the acquisition method of accounting under the provisions of ASC 805, Business Combinations, with AMD as the accounting acquirer.

We have acquired and invested in businesses, and may continue to do so, that offer products, services and technologies that we believe will help expand our product offerings and services and grow our business in respo…

We also have an unsecured revolving credit facility in the aggregate principal amount of $3.0 billion (Revolving Credit Agreement).

The indentures governing our 3.924% Senior Notes due 2032, 4.393% Senior Notes due 2052, 4.212% Senior Notes due 2026 and 4.319% Senior Notes due 2028 contain various covenants that limit our ability to, among other t…

For example, we have publicly announced certain corporate responsibility goals spanning multiple topics informed by input from various of our stakeholders, including customers, investors and employees.

New emerging technology trends, such as AI, require us to keep pace with evolving regulations and industry standards.

Our income tax expense is computed based on tax rates enacted at the time of the respective financial period.

The United States and other countries’ export control regulations continue to focus on targeting semiconductors associated with AI, including GPUs and associated products and services, by restricting or prohibiting th…

Government actions and regulations such as export regulations, import tariffs, and trade protection measures may limit our ability to export our products to certain customers.

Our supply chain manufacturing suppliers may incur increased costs of doing business should they be affected by new climate-related expectations such as those affecting abatement equipment, renewable energy, and/or al…

Although we maintain property, casualty, and other insurance, coverage varies by type, availability and cost.

Climate change may adversely affect our business, as well as that of our suppliers and customers.

Climate change may have an impact on our business.

We market and sell our products through a global, multi-tier network of authorized distributors, resellers and OEMs.

We typically sell our products pursuant to individual purchase orders.

Threat actors are also increasingly using tools and techniques that circumvent controls, evade detection, and remove forensic evidence, which means that we and others may be unable to implement adequate preventative m…

Uncertain global or regional economic conditions have and may in the future adversely impact our business.

Delays in developing, qualifying or shipping new products may cause us to miss our customers’ product design windows or, in some cases, breach contractual obligations.

The semiconductor industry is highly cyclical and has experienced significant downturns, often alongside constant and rapid technological change, wide fluctuations in supply and demand, continuous new product introduc…

•Our inability to continue to attract and retain key employees may hinder our business.

•The agreements governing our notes, our guarantee of Xilinx’s notes and the Revolving Credit Agreement.

•Government actions and regulations, including but not limited to export regulations, import tariffs and trade protection measures, may limit our ability to export our products to certain customers.

•Climate change may have an impact on our business.

We intend to seek a strategic partner to acquire ZT Systems' manufacturing business, and we may not realize the anticipated benefits of this transaction.

Our acquisition of ZT Systems (the Acquisition), which is expected to occur in the first half of 2025, is subject to the satisfaction or waiver of a number of customary conditions as specified in the purchase agreemen…

Our ability to complete the acquisition of ZT Systems is subject to closing conditions, including the receipt of consents and approvals from government authorities, which may impose conditions that could adversely aff…

Also, we enter into sale and factoring arrangements from time to time with respect to certain accounts receivables, which arrangements are non-recourse to us in the event that an account debtor fails to pay for credit…

In addition, a significant amount of our deferred tax assets related to net operating losses or tax credits which remain under a valuation allowance could be subject to limitations under Internal Revenue Code Section…

In October 2023, BIS issued new requirements for certain advanced computing items that apply to the export of products classified ECCN 3A090 or 4A090 to a party headquartered in, or with an ultimate parent headquarter…

We have equity interests in two joint ventures (collectively, the THATIC JV) with Higon Information Technology Co., Ltd.

In addition, our GPU revenue in the past has been affected in part by the volatility of the cryptocurrency mining market.

Industry-wide fluctuations in the computer marketplace have materially adversely affected us in the past and may materially adversely affect us in the future.

From time to time, governments provide incentives or make other investments that could benefit and give a competitive advantage to our competitors.

We believe that the main factors that determine our product competitiveness are total cost of ownership, timely product introductions, product quality, product features and capabilities (including accelerations for ke…

In addition, we are entering markets with current and new competitors who may be able to adapt more quickly to customer requirements and emerging technologies.

The markets in which our products are sold are highly competitive and rapidly evolving.

Nvidia’s Data Center GPU market share position, significant financial resources, introduction of competitive new products and proprietary software ecosystem have enabled it to market and price its products in a manner…

Nvidia’s dominance in the graphics processing unit market and its aggressive business practices may limit our ability to compete effectively on a level playing field.

Intel’s microprocessor market share position, significant financial resources, introduction of competitive new products, and existing relationships with top-tier OEMs have enabled it to market and price its products a…

Intel Corporation’s dominance of the microprocessor market and its aggressive business practices may limit our ability to compete effectively on a level playing field.

◦Our ability to complete the acquisition of ZT Systems is subject to closing conditions.

◦Nvidia’s dominance in the graphics processing unit market and its aggressive business practices may limit our ability to compete effectively on a level playing field.

◦Intel Corporation’s dominance of the microprocessor market and its aggressive business practices may limit our ability to compete effectively on a level playing field.

From time to time, we enter into commercial arrangements such as long-term capacity purchase agreements, financial guarantees and leases to support customers’ or commercial partners’ infrastructure development.

We may be required to satisfy financial obligations under guarantees and other commercial commitments.

Simultaneously, there are efforts by some stakeholders to reduce companies’ efforts on certain environmental, social and governance matters.

We have equity interests in two joint ventures (collectively, the THATIC JV) with Higon Information Technology Co., Ltd.

The implementation or increase of any tariffs, trade protection measures or restrictions, or retaliatory actions from foreign governments could result in lost sales and adversely impact our reputation and business.

In January 2025, BIS issued a final rule, commonly referred to as the “AI Diffusion Rule,” that would have imposed new restrictions on the export, reexport and in-country transfer of certain advanced semiconductor dev…

Additional export restrictions imposed in the future may not only impact our ability to serve China but could also impact our ability to serve other markets.

Evolving U.S.

We are subject to U.S.

Our business and the business of our suppliers and customers may also be subject to current and future climate-related regulations, contract terms and lawsuits.

Product transition risks may increase as the computing industry shifts toward shorter launch cycles and a broader range of accelerated computing platforms.

Our Embedded segment primarily includes embedded CPUs, APUs, FPGAs, System on Modules (SOMs) and adaptive SoC products some of which are subject to macroeconomic trends and volatile business conditions.

Our Client and Gaming segment revenue is focused on the consumer desktop and notebook PC segments and will depend in part on the market’s adoption of AI PCs.

Industry-wide fluctuations in the computer marketplace have materially adversely affected us in the past and may materially adversely affect us in the future.

The growth of our business is also dependent on continued demand for our products from high-growth adjacent emerging global markets.

In addition, strategic partnerships, acquisitions and business collaborations by and between our competitors may increase competition and adversely affect our business.

Our competitors may use their market position and financial resources to market and price their products in a way to dissuade customers from purchasing from us.

Competition is expected to remain intense, driven by rapid technological change, evolving standards, shifting customer preferences, product obsolescence, and frequent product launches from both established and new com…

Delivering the latest and best products to market on time is critical to revenue growth.

•We may be required to satisfy financial obligations under guarantees and other commercial commitments.