Advanced Micro Devices, Inc. stock research
FY2023 Q3
Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Sep 30, 2023
Revenue, gross profit, and gross margin all improved compared to both the prior quarter and the same quarter last year. Cost of revenue increased relative to the prior quarter but declined compared to the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue, gross profit, and gross margin all improved compared to both the prior quarter and the same quarter last year. Cost of revenue increased relative to the prior quarter but declined compared to the year-ago period.
- The strongest observable margin driver is the reduction in amortization of acquisition-related intangibles within cost of sales, as this line item was notably lower than both the preceding quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin strengthened. Versus the same quarter one year earlier, revenue and gross profit were also higher, and gross margin improved meaningfully.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.4%
Gross profit
$2.7B
Revenue
$5.8B
Cost of revenue
$3.1B
Quarter-over-quarter change
+1.8 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% |
| Sep 30, 2023 | $5.8B | $2.7B | $3.1B | 47.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 1, 2023
+1.8 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 strongest observable margin driver is the reduction in amortization of acquisition-related intangibles within cost of sales, as this line item was notably lower than both the preceding quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin strengthened. Versus the same quarter one year earlier, revenue and gross profit were also higher, and gross margin improved meaningfully.
Monitor the trend of cost of sales, particularly any changes in amortization of acquisition-related intangibles, as it has been a volatile component.