Advanced Micro Devices, Inc. stock research
FY2024 Q2
Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Jun 29, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose more slowly, leading to higher gross profit and gross margin. The gross margin improved sequentially and year-over-year, reflecting stronger gross profit generation relative to revenue.
Gross margin takeaway
Quarter ended Jun 29, 2024 · FY2024 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose more slowly, leading to higher gross profit and gross margin. The gross margin improved sequentially and year-over-year, reflecting stronger gross profit generation relative to revenue.
- The improvement in gross margin was primarily driven by revenue growing at a faster pace than cost of revenue. This allowed gross profit to increase at a higher rate than revenue, expanding the margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Relative to the same quarter one year earlier, the same metrics showed improvement, with revenue, gross profit, and gross margin all higher and cost of revenue little changed.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.1%
Gross profit
$2.9B
Revenue
$5.8B
Cost of revenue
$3.0B
Quarter-over-quarter change
+2.3 pts
Year-over-year change
+3.5 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 |
|---|---|---|---|---|
| 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% |
| Jun 29, 2024 | $5.8B | $2.9B | $3.0B | 49.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2024
+2.3 pts
Year-over-year change
Jul 1, 2023
+3.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was primarily driven by revenue growing at a faster pace than cost of revenue. This allowed gross profit to increase at a higher rate than revenue, expanding the margin.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Relative to the same quarter one year earlier, the same metrics showed improvement, with revenue, gross profit, and gross margin all higher and cost of revenue little changed.
Monitor the trajectory of amortization of acquisition-related intangibles within cost of sales, as it directly impacts gross margin.