Advanced Micro Devices, Inc. stock research
FY2023 Q2
Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Jul 1, 2023
Revenue and gross profit both held steady compared to the prior quarter, while cost of revenue decreased slightly, leading to a higher gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q2
Revenue and gross profit both held steady compared to the prior quarter, while cost of revenue decreased slightly, leading to a higher gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened.
- The gross margin improvement from the prior quarter was driven by a reduction in cost of revenue relative to revenue, as revenue was unchanged. Compared to the year-ago quarter, revenue declined more sharply than cost of revenue, which dampened the gross margin.
- Current quarter gross margin increased compared to the immediately preceding quarter. However, gross margin decreased compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.6%
Gross profit
$2.4B
Revenue
$5.4B
Cost of revenue
$2.9B
Quarter-over-quarter change
+1.5 pts
Year-over-year change
n/a
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 1, 2023 | $5.4B | $2.4B | $3.0B | 44.1% |
| Jul 1, 2023 | $5.4B | $2.4B | $2.9B | 45.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+1.5 pts
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 gross margin improvement from the prior quarter was driven by a reduction in cost of revenue relative to revenue, as revenue was unchanged. Compared to the year-ago quarter, revenue declined more sharply than cost of revenue, which dampened the gross margin.
Current quarter gross margin increased compared to the immediately preceding quarter. However, gross margin decreased compared to the same quarter one year earlier.
Monitor the trend in cost of revenue relative to revenue, as its movement directly affects gross margin trajectory.