Advanced Micro Devices, Inc. stock research
FY2023 Q4
Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Dec 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose at a similar pace. Gross profit improved year-over-year but remained relatively stable versus the prior quarter, resulting in a gross margin that weakened slightly from the preceding quarter yet strengthened notably from the year-ago period.
Gross margin takeaway
Quarter ended Dec 30, 2023 · FY2023 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose at a similar pace. Gross profit improved year-over-year but remained relatively stable versus the prior quarter, resulting in a gross margin that weakened slightly from the preceding quarter yet strengthened notably from the year-ago period.
- The year-over-year improvement in gross margin, supported by a higher gross profit relative to revenue growth, is the strongest observable driver. Monitoring the evolution of revenue relative to cost of revenue is important, as the sequential gross margin decline suggests a slightly faster proportional cost increase.
- Gross margin was higher than the same quarter one year earlier, indicating improved profitability from revenue. However, it was slightly lower than the immediately preceding quarter, reflecting a mixed near-term trend.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.2%
Gross profit
$2.9B
Revenue
$6.2B
Cost of revenue
$3.3B
Quarter-over-quarter change
-0.2 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% |
| Dec 30, 2023 | $6.2B | $2.9B | $3.3B | 47.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.2 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 year-over-year improvement in gross margin, supported by a higher gross profit relative to revenue growth, is the strongest observable driver. Monitoring the evolution of revenue relative to cost of revenue is important, as the sequential gross margin decline suggests a slightly faster proportional cost increase.
Gross margin was higher than the same quarter one year earlier, indicating improved profitability from revenue. However, it was slightly lower than the immediately preceding quarter, reflecting a mixed near-term trend.
Monitor the trajectory of cost of revenue relative to revenue, as the slight sequential margin compression points to a potential shift in cost efficiency.