Advanced Micro Devices, Inc. stock research
FY2024 Q3
Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Sep 28, 2024
Revenue and gross profit increased, while cost of revenue was stable compared to the prior quarter. Gross margin improved relative to both the previous quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2024 Q3
Revenue and gross profit increased, while cost of revenue was stable compared to the prior quarter. Gross margin improved relative to both the previous quarter and the same quarter last year.
- Gross profit increased more than proportionally relative to revenue, leading to margin expansion. The relationship indicates that cost of revenue grew at a slower pace than revenue.
- Compared to the preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher year-over-year but essentially flat sequentially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.1%
Gross profit
$3.4B
Revenue
$6.8B
Cost of revenue
$3.4B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+2.8 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 |
|---|---|---|---|---|
| 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% |
| Sep 28, 2024 | $6.8B | $3.4B | $3.4B | 50.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
+1.1 pts
Year-over-year change
Sep 30, 2023
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased more than proportionally relative to revenue, leading to margin expansion. The relationship indicates that cost of revenue grew at a slower pace than revenue.
Compared to the preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher year-over-year but essentially flat sequentially.
Monitor the trajectory of cost of revenue, as it remained unchanged sequentially while revenue grew.