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Advanced Micro Devices, Inc. stock research

Dec 28, 2024

FY2024 Q4

Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Dec 28, 2024

Revenue and gross profit increased, while cost of revenue also rose, leading to an improved gross margin. The gross margin was higher relative to both the prior quarter and the same quarter a year earlier.

Gross margin takeaway

Quarter ended Dec 28, 2024 · FY2024 Q4

Revenue and gross profit increased, while cost of revenue also rose, leading to an improved gross margin. The gross margin was higher relative to both the prior quarter and the same quarter a year earlier.

  • The strongest observable margin driver is the larger increase in revenue compared to the increase in cost of revenue, which expanded the gross margin.
  • Compared with the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, all three metrics were higher, with gross margin showing a more pronounced improvement.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

50.7%

Gross profit

$3.9B

Revenue

$7.7B

Cost of revenue

$3.8B

Quarter-over-quarter change

+0.6 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.

PeriodRevenueGross profitCost of revenueGross margin
Mar 30, 2024$5.5B$2.6B$2.9B46.8%
Jun 29, 2024$5.8B$2.9B$3.0B49.1%
Sep 28, 2024$6.8B$3.4B$3.4B50.1%
Dec 28, 2024$7.7B$3.9B$3.8B50.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 28, 2024

+0.6 pts

Year-over-year change

Dec 30, 2023

+3.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the larger increase in revenue compared to the increase in cost of revenue, which expanded the gross margin.

Compared with the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, all three metrics were higher, with gross margin showing a more pronounced improvement.

Monitor the company's cash and short-term investments, which decreased from the prior year according to the filing.