AM

Advanced Micro Devices, Inc. stock research

Apr 1, 2023

FY2023 Q1

Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Apr 1, 2023

Revenue decreased from the prior quarter and the year-ago quarter, while cost of revenue also declined. Gross profit remained stable sequentially, resulting in an improved gross margin, but was lower than the year-ago period, leading to a weakened margin year-over-year.

Gross margin takeaway

Quarter ended Apr 1, 2023 · FY2023 Q1

Revenue decreased from the prior quarter and the year-ago quarter, while cost of revenue also declined. Gross profit remained stable sequentially, resulting in an improved gross margin, but was lower than the year-ago period, leading to a weakened margin year-over-year.

  • The improvement in gross margin from the prior quarter was driven by a reduction in cost of revenue that outpaced the decline in revenue, keeping gross profit unchanged.
  • Compared to the prior quarter, gross margin improved; compared to the same quarter last year, gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

44.1%

Gross profit

$2.4B

Revenue

$5.4B

Cost of revenue

$3.0B

Quarter-over-quarter change

n/a

Year-over-year change

n/a

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 1, 2023$5.4B$2.4B$3.0B44.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Year-ago quarter unavailable

n/a

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The improvement in gross margin from the prior quarter was driven by a reduction in cost of revenue that outpaced the decline in revenue, keeping gross profit unchanged.

Compared to the prior quarter, gross margin improved; compared to the same quarter last year, gross margin weakened.

Monitor the amortization of acquisition-related intangibles included in cost of sales, as it increased notably year-over-year according to the filing.