Advanced Micro Devices, Inc. stock research
FY2024 Q1
Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Mar 30, 2024
Revenue decreased from the preceding quarter but increased from the same quarter a year earlier, while cost of revenue declined in both comparisons. Gross profit followed a similar pattern, resulting in gross margin that weakened slightly sequentially but improved year over year.
Gross margin takeaway
Quarter ended Mar 30, 2024 · FY2024 Q1
Revenue decreased from the preceding quarter but increased from the same quarter a year earlier, while cost of revenue declined in both comparisons. Gross profit followed a similar pattern, resulting in gross margin that weakened slightly sequentially but improved year over year.
- The strongest observable margin driver is the reduction in amortization of acquisition-related intangibles included in cost of sales, as disclosed in the filing. This non-cash cost decrease supported gross profit improvement compared to the prior year.
- Compared to the preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Compared to the same quarter a year earlier, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.8%
Gross profit
$2.6B
Revenue
$5.5B
Cost of revenue
$2.9B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+2.7 pts
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 |
|---|---|---|---|---|
| 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% |
| Mar 30, 2024 | $5.5B | $2.6B | $2.9B | 46.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 30, 2023
-0.4 pts
Year-over-year change
Apr 1, 2023
+2.7 pts
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 included in cost of sales, as disclosed in the filing. This non-cash cost decrease supported gross profit improvement compared to the prior year.
Compared to the preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Compared to the same quarter a year earlier, revenue and gross profit were higher, and gross margin improved.
Monitor the trend of amortization of acquisition-related intangibles and total cost of sales, as changes in these items can directly influence gross margin.