Technology · NASDAQ: AMD
AMD: how the business works
AMD designs computer chips for data centers, PCs and game consoles, and had revenue of $34.6 billion in FY2025.
By Hardik Bhandare · Checked against filings:
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Advanced Micro Devices, Inc. · Santa Clara, California · Founded 1969
Last updated
- Revenue, FY2025
- $34.6B
- Operating income, FY2025
- $3.7B
- Net income, FY2025 (incl. tax benefit and investment gains)
- $4.3B
- Data Center share of revenue, Q2 FY2026
- 58.2%
- Employees, Dec 27, 2025
- About 31,000
The short version
AMD in 5 points
1 · What it sells
AMD designs processors and graphics chips for data centers, PCs, game consoles and embedded uses, and had $34.6 billion of revenue in FY2025.
2 · Who pays it
In FY2025, data center customers paid 48.0% of AMD's revenue, PC makers and distributors 30.7%, console and graphics card customers 11.3% and embedded chip buyers 10.0%.
3 · What it keeps from $100
Of every $100 that came in during FY2025, AMD kept $12.2 as net income, including a $103 million net tax benefit with an $853 million one-off release of uncertain tax positions, investment gains and $66 million from discontinued operations, while its operating income, before interest and tax, was $10.7 per $100 of revenue.
4 · Where the operating profit comes from
In FY2025 Data Center earned $3.6 billion of segment operating income, Client and Gaming $2.9 billion and Embedded $1.2 billion, before $4.0 billion of company-wide items.
5 · The one thing to watch
OpenAI and Meta hold warrants for up to 320 million AMD shares at $0.01 each, equal to 19.6% of shares outstanding on Jul 29, 2026, and none had vested on Jun 27, 2026.
Sources: From AMD's FY2025 10-K, Q2 FY2026 10-Q and Q2 FY2026 earnings release · checked
See the full receipt and the management scorecard below
01Where the money goes · FY2025
Where does $100 of AMD's money go?
AMD · FY2025
Receipt for every $100
| Making the chips (cost of sales) | $46.5 |
|---|---|
| Research and development | $22.8 |
| Marketing and administration | $11.7 |
| Amortization of acquired intangibles | $6.4 |
| Interest | $0.4 |
| Kept as net income | $12.2 |
| Total | $100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.
How this is worked out
Cityfort calculation from FY2025 10-K. Of every $100 that came in during FY2025 (revenue plus other income, a tax benefit, equity income and discontinued operations): each line = line ÷ $35.4 billion × 100. There is no tax line because AMD had a net tax benefit of $103 million, which includes an $853 million one-off release of uncertain tax positions.
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02The business in one line
What does AMD do?
Cloud companies, PC makers, game console makers and industrial buyers pay AMD for its chips; about half of that money goes on making them, and most of the rest on research and running costs.
- In FY2025, data center chips were 48.0% of revenue, PC chips 30.7%, gaming chips 11.3% and embedded chips 10.0%.
- AMD designs the chips and other companies make them. TSMC makes all its CPU and GPU wafers at 7 nanometers or smaller.
03Who pays it
Who pays AMD?
Data center customers
48%
of revenue
Very large cloud and data center operators, server makers, system builders and distributors.
PC makers and distributors
31%
of revenue
Companies that build and sell desktop and notebook PCs, and independent distributors.
Console and graphics card customers
11%
of revenue
Console and handheld makers, and makers of graphics cards. AMD chips power the PlayStation 5 and Xbox Series S and X.
Embedded chip buyers
10%
of revenue
Makers of equipment for aerospace and defense, cars, factories, healthcare and communications, directly or through distributors.
- Data center customers48%
- PC makers and distributors31%
- Console and graphics card customers11%
- Embedded chip buyers10%
How spread out the customers are
Shares are by business line; AMD gives no split by type of customer. No customer was 10% or more of net revenue in FY2025 or FY2024; one Client and Gaming customer was 18% in FY2023. AMD does not name them. Sales are usually by individual purchase order, and customers can generally cancel standard products more than 30 days before shipment.
04Why it makes money
Why does AMD make money?
AMD spends first on chip design, then earns it back on each chip it sells.
AMD spent $23.36 on research and development per $100 of FY2025 revenue. Its segments earned $7.7 billion before $4.0 billion of company-wide items, mostly $2.3 billion of amortization and $1.6 billion of stock pay. Those items help explain why operating income per $100 was $10.7, against $22.2 in FY2021, before the Xilinx purchase.
Operating income per $100 of revenue
$22.2$10.7
FY2021 to FY2025
- AMD pays for chip design and software
- Outside factories make the chips
- Cloud firms, PC makers and console makers buy them
- Gross profit pays for the next round of design
- New chip generations go back to the same customers
↺ Step 5 feeds back into step 1.
05Business segments · FY2025
Which businesses make up AMD?
Data Center
48%Server CPUs, AI GPUs, networking chips and FPGAs for data centers. Segment operating income was $3.6 billion in FY2025. Revenue was $6.7 billion in Q2 FY2026, up 107% from a year earlier.
Revenue $16.6B · Operating profit $3.6B
Client
31%Ryzen chips for PCs. AMD reports Client and Gaming together for profit: they earned $2.9 billion of operating income in FY2025.
Revenue $10.6B
Gaming
11%Console chips and Radeon graphics cards. Revenue was $6.8 billion in FY2022, $2.6 billion in FY2024 and $3.9 billion in FY2025.
Revenue $3.9B
Embedded
10%Chips built into other machines, mostly from the 2022 Xilinx purchase: revenue was $246 million in FY2021 and $4.6 billion in FY2022. Segment operating income was $1.2 billion in FY2025.
Revenue $3.5B · Operating profit $1.2B
How the mix changed
- Data Center
- Client
- Gaming
- Embedded
Revenue by segment, FY2021 to FY2025.
US$
See the numbers
06The numbers · Consolidated · US$
How has AMD done?
Revenue
$34.6BFY2025
Revenue, which excludes the ZT manufacturing business sold in 2025, rose from $16.4 billion in FY2021 to $34.6 billion in FY2025.
US$
See the numbers
Net profit
$4.3BFY2025
Net income was $4.3 billion in FY2025, above operating income of $3.7 billion; stock-based pay exceeded half of net income in FY2022–FY2024.
US$
See the numbers
Profit kept per $100 of revenue
$12.5FY2025
Net income per $100 of revenue was $12.5 in FY2025, while operating income per $100 was $10.7, down from $22.2 in FY2021.
$ of profit per $100 of revenue (net margin)
See the numbers
Free cash flow
$5.5BFY2025
On continuing operations, cash from operations minus purchases of property and equipment rose from $2.4 billion in FY2024 to $5.5 billion in FY2025.
US$ · cash from operations minus spending on plants and equipment
See the numbers
See all yearly numbers
EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Last Saturday of December, a 52- or 53-week year: FY2025 ended Dec 27, 2025, FY2022 had 53 weeks, and Q2 FY2026 ended Jun 27, 2026). Net profit is the share belonging to the company's owners.
Learn: Stock-based compensation and dilution: pay that becomes shares
07Who runs it
Who runs AMD, and did they deliver?
Lisa T. Su
Chair, President and Chief Executive Officer · since 2014
CEO since October 2014 and Chair since February 2022. Total pay was $55.2 million in 2025, up from $31.0 million in 2024. That was 341 times the median employee's $161,780.
Jean Hu
Executive Vice President, Chief Financial Officer and Treasurer · since 2023
In this role since January 2023, per the 2026 proxy.
Mark D. Papermaster
Executive Vice President and Chief Technology Officer · since 2019
In this role since January 2019; joined AMD in October 2011.
Forrest E. Norrod
Executive Vice President and General Manager, Data Center Solutions · since 2023
Jack Huynh
Senior Vice President and General Manager, Computing and Graphics · since 2023
Joined AMD in 1998.
What they said, and what happened
4 delivered · 3 too early to tell
Said on Aug 5, 2025
AMD guided Q3 FY2025 revenue of about $8.7 billion, plus or minus $300 million, excluding MI308 sales to China.
DeliveredWhat happened
Reported revenue of $9.2 billion was above the range, with no MI308 revenue from China.
Said on Nov 4, 2025
AMD guided Q4 FY2025 revenue of about $9.6 billion, plus or minus $300 million, excluding MI308 sales to China.
DeliveredWhat happened
Reported revenue of $10.3 billion was above the range, and included about $390 million of MI308 sales to China that the outlook excluded. Without them it was about $9.88 billion, within the range.
Said on Feb 3, 2026
AMD guided Q1 FY2026 revenue of about $9.8 billion, plus or minus $300 million, including about $100 million of MI308 sales to China.
DeliveredWhat happened
Reported revenue of $10.3 billion was above the range.
Said on May 5, 2026
AMD guided Q2 FY2026 revenue of about $11.2 billion, plus or minus $300 million.
DeliveredWhat happened
Reported revenue of $11,536 million was just above the $11.5 billion top of the range.
Said on Aug 4, 2026
AMD guided Q3 FY2026 revenue of about $13.0 billion, plus or minus $300 million.
Too early to tellWhat happened
AMD announced on Oct 6, 2026 that it will report Q3 FY2026 results on Nov 3, 2026, after the market close.
Said on Oct 6, 2025
AMD and OpenAI said the first 1 gigawatt of OpenAI's deployment would start in the second half of 2026.
Too early to tellWhat happened
At Jun 27, 2026 no warrant tranche had vested; the first vests after the first gigawatt is delivered.
Said on Feb 24, 2026
AMD and Meta said shipments for Meta's first gigawatt were expected to begin in the second half of 2026.
Too early to tellWhat happened
At Jun 27, 2026 no warrant tranche had vested; the first vests on shipment of the first gigawatt.
08What could go wrong
What could go wrong for AMD?
- Other
Warrants and stock deals could add shares
AMD gave OpenAI and Meta warrants for up to 160 million shares each at $0.01 a share. They vest on GPU purchase milestones, conditions tied to AMD's share price and other conditions. Fully vested, the 320 million shares equal 19.6% of the 1,632.5 million shares outstanding on Jul 29, 2026. None had vested at Jun 27, 2026. The World Labs deal, about $8.2 billion in stock, would also add shares if it closes.
Watch The warrant note in each 10-Q and the diluted share count.
- Demand
Large AI deals are binding only in part
AMD's 10-Q of Aug 5, 2026 says OpenAI and Meta each intend to deploy up to 6 gigawatts of AMD GPUs, but each binding commitment covers the first gigawatt. AMD's 10-K says data center construction delays or customers' lack of capital could delay or reduce demand.
Watch Whether shipments for the first gigawatts have started: AMD said on Oct 6, 2025 and on Feb 24, 2026 that they would in the second half of 2026.
- Concentration
Reliance on one factory partner
TSMC makes all AMD wafers for CPUs and GPUs at 7 nanometers or smaller. Most assembly and testing goes through two joint ventures with Tongfu affiliates. AMD's 10-K says it cannot guarantee that these suppliers will meet its needs.
Watch Supply commitments and any supply limits described in each 10-Q.
- Regulation
US limits on chip exports to China
A US license requirement from April 2025 on MI308 GPUs led to about $800 million of charges in Q2 FY2025. About $360 million was reversed in Q4. AMD's 10-K says US officials expressed an expectation of 15% of licensed MI308 China revenue, with no regulation published at that time. Customers billed in China and Hong Kong were 22.4% of FY2025 revenue; billing location is not where chips end up.
Watch MI308 sales, inventory charges and new export rules in each release and 10-Q.
- Competition
Rivals, and customers building their own chips
AMD's 10-K names Intel and Nvidia as main data center rivals and says some customers are developing their own chips. It also notes that in September 2025 Nvidia announced a partnership with and investment in Intel.
Watch Data Center revenue and segment operating income each quarter.
- Cash and liquidity
Larger commitments for supply and data centers
Unconditional commitments rose from $12.2 billion at Dec 27, 2025 to $30.3 billion at Jun 27, 2026. AMD also had $4.5 billion of leases not yet started, signed $9.5 billion more after that date, and had up to $4.1 billion of lease guarantees. After the quarter it agreed to up to $5.0 billion of investment commitments and sold $4.75 billion of notes.
Watch Commitments, guarantees and debt in the Q3 FY2026 10-Q.
- Demand
Gaming revenue swings with console sales
Gaming revenue went from $6.8 billion in FY2022 to $2.6 billion in FY2024 and $3.9 billion in FY2025. AMD's 10-K says its semi-custom revenue depends on the success of its customers' products.
Watch Gaming revenue and AMD's comments on semi-custom sales each quarter.
- Execution
Rising inventory
Inventories were $8.5 billion at Jun 27, 2026, up from $5.7 billion at Dec 28, 2024. Customers can generally cancel standard products more than 30 days before shipment, and FY2025 included about $440 million of net MI308 inventory and related charges.
Watch Inventories on the balance sheet and any inventory charges.
09Both sides
What do supporters and critics point to?
What supporters point to
- Revenue rose from $25.8 billion in FY2024 to $34.6 billion in FY2025, and was $11.5 billion in Q2 FY2026.
- Data Center revenue grew 107% in Q2 FY2026 to $6.7 billion, 58.2% of the total.
- AMD's 10-Q of Aug 5, 2026 says OpenAI and Meta each intend to deploy up to 6 gigawatts of AMD GPUs.
- AMD held $13.1 billion of cash and short-term investments against $3.2 billion of debt at Jun 27, 2026.
- Reported revenue came in above AMD's guided range in each of the four quarters from Q3 FY2025 to Q2 FY2026. Q4 FY2025 included about $390 million of MI308 sales to China that its outlook excluded; without them revenue was within the range.
What critics point to
- Operating income per $100 of revenue was $10.7 in FY2025, down from $22.2 in FY2021.
- The OpenAI and Meta warrants equal 19.6% of shares outstanding on Jul 29, 2026 if fully vested.
- Unconditional commitments rose from $12.2 billion to $30.3 billion in the six months to Jun 27, 2026.
- Q2 FY2026 net income of $2.3 billion included $483 million of gains on investments, primarily unrealized; operating income was $2.0 billion.
- Stock-based pay was $1.6 billion in FY2025, and exceeded half of net income in FY2022–FY2024.
10What to watch next
What should you watch next at AMD?
Next event
Q3 FY2026 results
Nov 3, 2026
Date confirmed by the company
Revenue against AMD's own outlook
AMD said on Aug 4, 2026 that it expected Q3 FY2026 revenue of about $13.0 billion, plus or minus $300 million. It announced on Oct 6, 2026 that results come on Nov 3, 2026, after the market close.
First gigawatt shipments
AMD said on Oct 6, 2025 that OpenAI's first gigawatt starts in the second half of 2026, and on Feb 24, 2026 that Meta's shipments are expected to begin then. No warrant tranche had vested at Jun 27, 2026.
Debt and commitments in the Q3 10-Q
The $4.75 billion of notes from August 2026 are not in the Jun 27 figures. Unconditional commitments were $30.3 billion at that date.
11Key facts
Key facts about AMD
- What does AMD do?
- AMD (Advanced Micro Devices) designs processors and graphics chips for data centers, PCs, game consoles and embedded uses such as cars and factories. AMD had revenue of $34.6 billion in FY2025, the year ended Dec 27, 2025.
- How does AMD make money?
- AMD makes money by selling chips to companies that build servers, PCs and consoles, and from some design fees. Data center chips were the largest source, at 48.0% of AMD's $34.6 billion of revenue in FY2025.
- What is AMD's business model?
- AMD's business model is to design chips and pay other companies to make them. AMD spent $8.1 billion on research and development in FY2025, or 23.4% of revenue. Its customers include very large data center operators, PC makers and console makers, and no customer was 10% or more of FY2025 net revenue.
- Is AMD profitable?
- Yes. AMD had operating income of $3.7 billion and net income of $4.3 billion in FY2025. That net income included a $103 million net tax benefit, $341 million of investment gains and $66 million from discontinued operations. The tax benefit includes an $853 million one-off release of uncertain tax positions. In Q2 FY2026, the quarter ended Jun 27, 2026, AMD had operating income of $2.0 billion and net income of $2.3 billion. That net income included $483 million of investment gains.
- What is AMD's revenue by segment?
- AMD's FY2025 revenue of $34.6 billion was split into Data Center $16.6 billion (48.0%), Client $10.6 billion (30.7%), Gaming $3.9 billion (11.3%) and Embedded $3.5 billion (10.0%). AMD reports Client and Gaming as one segment for operating income, with revenue still split.
- Who owns AMD?
- AMD has one class of common stock with one vote per share, and 1,632.5 million shares on Jul 29, 2026. Vanguard Capital Management reported 7.48% as of Mar 31, 2026. BlackRock is listed at 7.7% in AMD's 2026 proxy, from a February 2024 filing. AMD's 16 directors and executive officers together held under 1% on Mar 19, 2026.
- How big is AMD's Data Center business?
- AMD's Data Center segment, which sells EPYC server CPUs and Instinct AI GPUs, had revenue of $16.6 billion in FY2025. In Q2 FY2026 it had revenue of $6.7 billion, 58.2% of AMD's total. The filings used for this page do not split that revenue between CPUs and GPUs.
- How much does AMD earn from PC chips?
- AMD's Client business, mainly Ryzen processors for desktop and notebook PCs, had revenue of $10.6 billion in FY2025, up 51% from $7.1 billion in FY2024. AMD said processor unit shipments rose 15% and average selling price rose 31%.
- How much does AMD earn from gaming chips?
- AMD's Gaming business sells custom chips for the PlayStation 5 and Xbox Series S and X, plus Radeon graphics cards. AMD's Gaming revenue was $3.9 billion in FY2025, up from $2.6 billion in FY2024 and below $6.8 billion in FY2022.
- What is AMD's Embedded segment?
- AMD's Embedded segment sells processors and FPGAs (chips whose hardware can be reconfigured) for uses such as aerospace, cars, factories and healthcare. AMD's Embedded revenue was $3.5 billion in FY2025, down from $5.3 billion in FY2023.
Go deeper
More detail from the same filings. Open any section.
12What it sells
12What it sells
What does AMD sell?
Data Center chips ($16.6B in FY2025)
EPYC CPUs (the general-purpose processors in a server), Instinct GPUs (chips that do many calculations at once, used for AI), plus networking chips and FPGAs.
Client: PC chips ($10.6B)
Ryzen processors for desktop and notebook PCs, sold mainly through PC makers and distributors.
Gaming: console and graphics chips ($3.9B)
Custom chips for the PlayStation 5 and Xbox Series S and X, plus Radeon graphics cards for PCs.
Embedded: chips built into other machines ($3.5B)
Processors and FPGAs (chips whose hardware can be reconfigured) for aerospace, cars, factories, healthcare and communications gear.
Helios server racks (revenue not stated separately)
Whole racks of AMD chips for AI data centers. AMD said in its Aug 4, 2026 release that it had launched them.
What it does
- Does: Designs CPUs, GPUs, FPGAs and networking chips
- Does: Builds software such as ROCm so developers can use its AI chips
- Does: Makes custom chips for console makers and charges some customers design fees
What it does not do
- Does not: Does not make its own silicon wafers: outside factories such as TSMC do
- Does not: Does not split Data Center revenue between CPUs and GPUs in the filings used for this page
- Does not: Shows no dividend payment in its cash flow statements from FY2021 to FY2025
13How the money flows
13How the money flows · FY2025
How does money flow through AMD?
Money in
- Net revenue$34.6B
- Other income, tax benefit, equity income and discontinued operations$772M
The company
AMD
$35.4B came in
Money out
- Cost of sales (making the chips)$16.5B
- Research and development$8.1B
- Marketing, general and administrative$4.1B
- Amortization of acquired intangibles, such as Xilinx technology$2.3B
- Interest expense$131M
- Net income$4.3B
- Customers paid AMD $34.6 billion for chips and related services in FY2025.
- The chips cost $16.5 billion to make, before amortization of acquired technology.
- Research and development took $8.1 billion; marketing and administration took $4.1 billion.
- Amortization, a non-cash cost from past acquisitions, took $2.3 billion, leaving operating income of $3.7 billion.
- After $131 million of interest expense, $772 million of other items lifted net income to $4.3 billion. They include a $103 million net tax benefit, with an $853 million one-off release of uncertain tax positions, and $66 million from discontinued operations.
14What it needs to run
14What it needs to run
What does AMD need to run?
Outside chip factories
Third-party factories make the silicon wafers for all AMD products. TSMC makes all CPU and GPU wafers at 7 nanometers or smaller.
Assembly and test partners
Two joint ventures with Tongfu affiliates, in which AMD holds 15%, do most assembly and testing. AMD bought $1.2 billion from them in the first half of FY2026.
Engineers and staff
About 31,000 employees at Dec 27, 2025, up from about 15,500 at the end of FY2021.
Supply and cloud commitments
$30.3 billion of unconditional commitments at Jun 27, 2026, mainly for wafers, substrates, components and multi-year cloud services.
Data center and other leases
Leases not yet started came to $4.5 billion at Jun 27, 2026. After that date AMD signed $9.5 billion more, for up to 16 years.
15Where it sells
15Where it sells · FY2025
Where does AMD sell?
- United States (by customer billing location)33%
- China incl. Hong Kong (by customer billing location)22%
- Taiwan (by customer billing location)15%
- Singapore (by customer billing location)12%
- Other regions (by customer billing location)18%
16Competitors and what protects it
16Competitors and what protects it
Who does AMD compete with?
Intel
AMD's main rival for PC CPUs and embedded CPUs, and a main rival for server chips. It also sells discrete GPUs for gaming.
Nvidia
Competes with AMD's data center GPUs and networking products. AMD calls it the discrete GPU market share leader.
Altera
Named as a competitor for FPGAs and adaptive chips, in data centers and embedded uses.
Broadcom
Named among makers of application-specific chips that compete with AMD's Embedded products.
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Research spending4 of 5
AMD spent $8.1 billion on research and development in FY2025, up from $2.8 billion in FY2021.
- Range of chip types4 of 5
AMD sells CPUs, GPUs, FPGAs and networking chips. FY2025 revenue came from four businesses, the largest at 48.0%.
- Console relationships3 of 5
AMD custom chips power the PlayStation 5 and Xbox Series S and X. Gaming revenue ranged from $2.6 billion to $6.8 billion between FY2022 and FY2025.
- Large AI customer contracts3 of 5
AMD's 10-Q of Aug 5, 2026 says OpenAI and Meta each intend to deploy up to 6 gigawatts of AMD GPUs, but each binding commitment covers the first gigawatt.
Weak spot
One factory partner for advanced chips
AMD relies on TSMC for all CPU and GPU wafers at 7 nanometers or smaller. Its 10-K says it cannot guarantee that suppliers will meet its needs.
17Where growth could come from
17Where growth could come from
Where could AMD's growth come from?
AMD said on Aug 4, 2026 that it expected Q3 FY2026 revenue of about $13.0 billion, plus or minus $300 million. CFO Jean Hu said in the same release: "We expect Data Center sales to accelerate in the second half of 2026".
Data Center chips
Working+107% in Q2 FY2026
Data Center revenue was $6.7 billion in Q2 FY2026, up from $3.2 billion a year earlier. AMD cited demand for EPYC processors and Instinct GPUs.
Status: Working, on track against what the company said.
Gigawatt GPU deals
EarlyUp to 6 GW each: OpenAI, Meta
A gigawatt measures the power capacity of the data centers using the chips. AMD said on Oct 6, 2025 that OpenAI's first gigawatt starts in the second half of 2026, and on Feb 24, 2026 that Meta shipments are expected to begin then. No warrant tranche had vested at Jun 27, 2026.
Status: Early, too early to judge.
Helios server racks
NewUp to 2 GW: Anthropic
AMD's Aug 4, 2026 release says Helios is being deployed by customers including Anthropic, Meta, Microsoft, OpenAI and Oracle. The release gives no revenue figure for these deals.
Status: New, recently announced.
PC chips
Working+23% in Q2 FY2026
Client revenue was $3.1 billion in Q2 FY2026, up from $2.5 billion a year earlier. AMD cited demand for Ryzen processors.
Status: Working, on track against what the company said.
Gaming chips
MixedDown 31% in Q2 FY2026
Gaming revenue was $779 million in Q2 FY2026, down from $1.1 billion a year earlier, on lower semi-custom revenue (chips made for consoles).
Status: Mixed, partly on track.
World Labs purchase
NewAbout $8.2B, paid in stock
AMD agreed on Sep 26, 2026 to buy World Labs. The number of shares is not yet known. A closing has not been reported in the filings used for this page.
Status: New, recently announced.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
18The company's own measures (non-GAAP)
18The company's own measures · FY2025 and Q2 FY2026
What do AMD's own measures show?
Official (GAAP): Operating income, FY2025
$3.7B
Company's own measure: Non-GAAP operating income, FY2025
$7.8B
AMD leaves out stock-based payPay given as shares instead of cash, which spreads ownership more thinly. Learn more, amortization of acquired intangibles and acquisition-related costs.
Official (GAAP): Net income, FY2025
$4.3B
Company's own measure: Non-GAAP net income, FY2025
$6.8B
AMD also leaves out investment gains and discontinued operations, and uses a normalized tax rate.
Official (GAAP): Diluted EPS, FY2025
$2.65
Company's own measure: Non-GAAP diluted EPS, FY2025
$4.17
Same adjustments as non-GAAPThe company's own "adjusted" numbers, not the official (GAAP) ones. Always read them next to the official figure. Learn more net income, per diluted share.
Official (GAAP): Gross margin, FY2025 (as AMD states it)
50.0%
Company's own measure: Non-GAAP gross margin, FY2025
52.0%
AMD leaves out amortization of acquired intangibles and stock-based pay, among other items.
Official (GAAP): Operating income, FY2025
$3.7B
Company's own measure: Adjusted EBITDA, FY2025
$8.5B
AMD adds back depreciation, amortization, stock-based pay and acquisition-related costs. EBITDAOperating profit before wear-and-tear charges (depreciation and amortization). As a margin: per $100 of sales. in "The numbers" adds back only depreciation and amortization ($6.7 billion).
Official (GAAP): Net cash from operating activities, continuing operations, FY2025
$6.5B
Company's own measure: Free cash flow, FY2025 (AMD's definition)
$5.5B
AMD subtracts purchases of property and equipment. This matches "The numbers", which also use continuing operations.
Official (GAAP): Operating income, Q2 FY2026
$2.0B
Company's own measure: Non-GAAP operating income, Q2 FY2026
$3.1B
AMD adds back $503 million of stock-based pay, $544 million of amortization, $40 million of acquisition-related costs and a $17 million legal contingency.
These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.
Sources
Earnings release, Q4 and full year FY2025 (Form 8-K, Ex. 99.1); Form 10-K, fiscal year 2025 (ended Dec 27, 2025); Earnings release, Q2 FY2026 (Form 8-K, Ex. 99.1)
Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out · Stock-based compensation and dilution: pay that becomes shares
19Financial strength and debt
19Financial strength · Jun 27, 2026
How much debt does AMD have?
- Total debt$3.2B
- Cash and investments$13.1B
- Net cash (cash minus debt)$9.9B
- Net worth (shareholders' money)$67.2B
- Debt to equity
- 0.05×
- $ of debt for every $1 of shareholders' money
- Debt is shown net of issuance costs; the principal was $3.25 billion, including $875 million of notes due in 2026. Net cash is a Cityfort calculation from Q2 FY2026 earnings release.
- These figures are from before the $4.75 billion of senior notes that closed on Aug 17, 2026. Debt after that date will first appear in the Q3 FY2026 10-Q.
- Unconditional commitments were $30.3 billion at Jun 27, 2026, of which $17.4 billion falls in the rest of FY2026. They were $12.2 billion at Dec 27, 2025.
- AMD's maximum gross exposure on guarantees of partners' data center leases was $4.1 billion at Jun 27, 2026.
- A $5.0 billion revolving credit line and a $5.5 billion commercial paper program had nothing outstanding at Jun 27, 2026.
20Who owns it
20Who owns it · ownership as of Mar 19, 2026
Who owns AMD?
- Officers and directors (as a group), shares
- 0.5%
Share classes
Holders of 5% or more
From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.
Sources
Form 10-Q, Q2 FY2026 (quarter ended Jun 27, 2026); Schedule 13G, Vanguard Capital Management, event date Mar 31, 2026; Proxy statement (DEF 14A) for the May 13, 2026 annual meeting and 1 more
Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes
21What it does with profit
21What it does with profit
What does AMD do with its profit?
Buyback · Dec 28, 2024
Share repurchases in FY2024.
$862M
Buyback · Dec 27, 2025
Repurchased 12.4 million shares in FY2025.
$1.3B
Buyback · Jun 27, 2026
Repurchased 1.1 million shares in the first half of FY2026, none in Q2; $9.2 billion of the program remained.
$221M
Money raised · Mar 24, 2025
Sold $1.5 billion of senior notes.
$1.5B
Money raised · Aug 17, 2026
Closed $4.75 billion of senior notes due 2029 to 2036.
$4.8B
22Governance signals
22Governance signals
What do AMD's governance filings show?
- Auditor
- Ernst & Young LLP, since 1970
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- AMD holds 15% of the joint ventures that do most of its assembly and testing. It bought $594 million from them in Q2 FY2026 and $1.2 billion in the first half. It owed them $569 million at Jun 27, 2026.
- Credit rating
- No public credit rating found
Flags to know about
disclosure · Feb 4, 2026
10-K corrected the same day
AMD's original FY2025 10-K swapped two Client sales drivers. A 10-K/A filed Feb 4, 2026 corrected them to 15% unit shipments and 31% average selling price. The financial statements did not change.
disclosure
No product split inside Data Center
The filings used for this page give no revenue split between Instinct GPUs and EPYC CPUs, and no names for large customers.
shares as collateral
Shares used as collateral
AMD's 2026 proxy says no named executive officer or director has used shares as collateral for loans. Doing so needs committee preapproval, which has not been granted to date.
other
Pre-arranged share sale plans
Four insiders adopted Rule 10b5-1 plansAn insider's trading plan, set up in advance, that buys or sells shares on a schedule. Learn more in Q2 FY2026. Lisa Su's plan covers 450,000 shares through Jun 16, 2027. Forrest Norrod's covers 116,784, Jean Hu's 30,000 and director Joseph Householder's 135,000.
other
Accounting and board changes
Chief accounting officer Philip Carter resigned effective Sep 5, 2025, and Emily Ellis took the role on Dec 15, 2025. Director Joe Householder retired on Aug 19, 2026; Tim Ryan joined the board and KC McClure became audit committee chair.
23What the market paid
23What the market paid · price as of Oct 30, 2026
What did the market pay for AMD on Oct 30, 2026?
Price as of Oct 30, 2026 (shown for education; prices change daily).
Price as of Oct 30, 2026: AMD closed at $504.80 on Nasdaq. Times 1,632.5 million shares (Jul 29, 2026) that is a market value of about $824.1 billion (Cityfort calculation from the Oct 30, 2026 Nasdaq closing price and the Q2 FY2026 10-Q cover). P/E is price ÷ earnings per share: 129.8 on diluted EPS of $3.89, the sum of the four quarters to Jun 27, 2026. P/B is market value ÷ stockholders' equity: 12.3 on $67.2 billion at Jun 27, 2026. EV/EBITDA is market value plus debt minus cash, ÷ EBITDA: 85.6 on $9.5 billion for those four quarters. Debt and cash are from Jun 27, 2026, before the August 2026 notes.
- Share price
- $504.80
- Market value (market cap)
- $824.1B
- P/E
- 129.8×
- P/B
- 12.3×
- EV/EBITDA
- 85.6×
Source: AMD historical daily prices, October 2026 (close of Oct 30, 2026: $504.80); Form 10-Q, Q2 FY2026 (quarter ended Jun 27, 2026); Earnings release, Q2 FY2026 (Form 8-K, Ex. 99.1) and 2 more
24How it got here
24How it got here
How did AMD get here?
1969
Milestone
Founded
AMD was incorporated in Delaware on May 1, 1969, and became a public company in 1972.
2014
Milestone
Lisa Su becomes CEO
Dr. Lisa Su became President and CEO in October 2014, and Chair in February 2022.
2022
Business-model change
Xilinx purchase
AMD completed its purchase of Xilinx on Feb 14, 2022, for $48.8 billion. It added FPGAs and billions of dollars a year of amortization.
2022
Milestone
Pensando purchase
AMD bought Pensando, a maker of data center networking chips, on May 26, 2022, for about $1.9 billion.
2025
Business-model change
ZT Systems bought, its factories sold
AMD bought ZT Systems in March 2025 for $4.4 billion to add server design. It sold the manufacturing part to Sanmina on Oct 27, 2025, for $2.4 billion in cash, subject to adjustments, plus shares.
2025
Crisis
China export license
A US license requirement from April 2025 on MI308 GPUs led to about $800 million of charges in Q2 FY2025. AMD had an operating loss of $134 million that quarter.
2025
Business-model change
OpenAI deal
In October 2025 AMD and OpenAI signed a purchase agreement, and AMD gave OpenAI a warrant for up to 160 million shares. AMD's 10-Q of Aug 5, 2026 says OpenAI intends to deploy up to 6 gigawatts of AMD GPUs; the binding commitment covers the first gigawatt only.
2026
Business-model change
Meta deal
In February 2026 AMD and Meta amended their purchase agreement, and AMD gave Meta a warrant for up to 160 million shares. AMD's 10-Q of Aug 5, 2026 says Meta intends to deploy up to 6 gigawatts of AMD GPUs; the binding commitment covers the first gigawatt only.
2026
Milestone
World Labs agreement and new notes
AMD closed $4.75 billion of senior notes on Aug 17, 2026. On Sep 26, 2026 it agreed to buy World Labs for about $8.2 billion in stock.
25Sources and changes
Where every number on this page comes from
Sources (29 documents)
- S1Form 10-K, fiscal year 2025 (ended Dec 27, 2025) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 4, 2026
- S2Form 10-K/A (Amendment No. 1), fiscal year 2025: corrects Client unit and price wording in MD&A · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 4, 2026
- S4Form 10-K, fiscal year 2023 (ended Dec 30, 2023) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jan 31, 2024
- S5Form 10-K, fiscal year 2022 (ended Dec 31, 2022) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 27, 2023
- S6Form 10-K, fiscal year 2021 (ended Dec 25, 2021) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 3, 2022
- S7Form 10-Q, Q2 FY2026 (quarter ended Jun 27, 2026) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 5, 2026
- S13Earnings release, Q2 FY2026 (Form 8-K, Ex. 99.1) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 4, 2026
- S14Earnings release, Q1 FY2026 (Form 8-K, Ex. 99.1) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 5, 2026
- S15Earnings release, Q4 and full year FY2025 (Form 8-K, Ex. 99.1) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 3, 2026
- S16Earnings release, Q3 FY2025 (Form 8-K, Ex. 99.1) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 4, 2025
- S17Earnings release, Q2 FY2025 (Form 8-K, Ex. 99.1) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 5, 2025
- S23Proxy statement (DEF 14A) for the May 13, 2026 annual meeting · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
- S24Schedule 13G/A (Amendment 13), The Vanguard Group, event date Mar 13, 2026 · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 26, 2026
- S25Schedule 13G, Vanguard Capital Management, event date Mar 31, 2026 · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 29, 2026
- S26Form 8-K, Sep 28, 2026: agreement to acquire World Labs (Item 3.02) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 28, 2026
- S27Form 8-K, Aug 19, 2026: director retirement and appointment (Item 5.02) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 19, 2026
- S28Form 8-K, Aug 17, 2026: $4.75 billion senior notes (Items 1.01, 2.03) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 17, 2026
- S30Form 8-K, Feb 24, 2026: Meta warrant and purchase arrangement (Items 1.01, 3.02) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 24, 2026
- S31Form 8-K Ex. 99.1, Feb 24, 2026: AMD and Meta joint press release · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 24, 2026
- S33Form 8-K, Dec 15, 2025: chief accounting officer appointed (Item 5.02) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Dec 15, 2025
- S34Form 8-K, Oct 27, 2025: ZT manufacturing business sale to Sanmina completed (Item 2.01) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 27, 2025
- S35Form 8-K, Oct 6, 2025: OpenAI warrant and purchase agreement (Items 1.01, 3.02) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 6, 2025
- S36Form 8-K Ex. 99.1, Oct 6, 2025: AMD and OpenAI joint press release · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 6, 2025
- S37Form 8-K, Aug 25, 2025: chief accounting officer departure (Item 5.02) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 25, 2025
- S39Form 8-K, Apr 16, 2025: export license requirement on MI308, up to about $800 million of charges (Item 8.01) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 16, 2025
- S40Form 8-K, Mar 31, 2025: ZT Systems acquisition completed (Item 2.01) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 31, 2025
- S41Form 8-K, Mar 24, 2025: $1.5 billion senior notes (Items 1.01, 2.03) · Advanced Micro Devices, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 24, 2025
- S43AMD historical daily prices, October 2026 (close of Oct 30, 2026: $504.80) · Nasdaq, Inc. · Tier 1: company or exchange filing · Oct 30, 2026
- S44AMD to Report Fiscal Third Quarter 2026 Financial Results (date of the results only) · Advanced Micro Devices, Inc. (ir.amd.com) · Tier 3: context only · Oct 6, 2026
Changes to this page (v2 · Nov 1, 2026)
- v2 · Nov 1, 2026Standardized calculation labels to name the filing they come from; no figures changed. (editorial update, Q2 FY2026)
- v1 · Nov 1, 2026First version. (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
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