AMD(US:AMD)2024-10-29 20:16Financial Performance - AMD reported Q3 2024 revenue of $6.8 billion, with a gross margin of 50% and net income of $771 million[2] - Non-GAAP Q3 2024 revenue was $6.8 billion, with a gross margin of 54% and net income of $1.5 billion[2] - AMD's Q3 2024 net revenue reached $6.819 billion, a 17% increase from Q2 2024[23] - AMD's Q3 2024 gross margin improved to 50%, up from 49% in Q2 2024[23] - AMD's Q3 2024 operating income surged to $724 million, a 169% increase from Q2 2024[23] - AMD's Q3 2024 net income was $771 million, a 191% increase from Q2 2024[23] - AMD's nine-month net revenue for 2024 totaled $18.127 billion, a 10% increase from the same period in 2023[23] - AMD's nine-month gross margin for 2024 improved to 49%, up from 46% in the same period in 2023[23] - AMD's nine-month operating income for 2024 was $1.029 billion, a significant increase from $59 million in the same period in 2023[23] - AMD's nine-month net income for 2024 was $1.159 billion, a substantial increase from $187 million in the same period in 2023[23] - Net income for the nine months ended September 28, 2024, was $1.159 billion, a significant increase from $187 million in the same period last year[25] - Adjusted EBITDA rose to $1,887 million in September 2024, up from $1,430 million in June 2024 and $1,439 million in September 2023[28] - Free cash flow increased to $496 million in September 2024, compared to $439 million in June 2024 and $297 million in September 2023[29] - Free cash flow margin improved to 7% in September 2024, compared to 8% in June 2024 and 5% in September 2023[29] Segment Performance - Data Center segment revenue reached a record $3.5 billion, up 122% year-over-year and 25% sequentially[6] - Client segment revenue was $1.9 billion, up 29% year-over-year and 26% sequentially[6] - Data Center segment net revenue increased to $3,549 million in September 2024, up from $2,834 million in June 2024 and $1,598 million in September 2023[26] - Client segment operating income improved to $276 million in September 2024, compared to $89 million in June 2024 and $140 million in September 2023[26] - Gaming segment net revenue declined to $462 million in September 2024, down from $648 million in June 2024 and $1,506 million in September 2023[26] Future Outlook - AMD expects Q4 2024 revenue to be approximately $7.5 billion, representing year-over-year growth of 22% and sequential growth of 10%[16] - AMD expects record annual revenue growth for 2024 driven by significant growth in Data Center and Client segments[20] - AMD anticipates Q4 2024 revenue and non-GAAP gross margin to align with financial outlook[20] Acquisitions and Strategic Investments - AMD announced the acquisition of ZT Systems to expand data center AI systems capabilities, expected to close in the first half of 2025[12] - AMD completed the acquisition of Silo AI to accelerate development and deployment of AI models on AMD hardware[13] - Acquisitions, net of cash acquired, amounted to $548 million, indicating ongoing strategic investments[25] Product Announcements - AMD unveiled new AMD EPYC 9005 Series processors and AMD Instinct MI325X accelerators for enterprise AI solutions[7][8] - AMD announced new Ryzen AI PRO 300 Series mobile processors with 50+ AI TOPS for next-gen AI PCs[9] Partnerships and Collaborations - AMD and Intel announced the creation of an x86 ecosystem advisory group to collaborate on architectural interoperability[14] Balance Sheet and Cash Flow - Total assets increased to $69.636 billion from $67.885 billion, reflecting growth in current and non-current assets[24] - Cash and cash equivalents decreased slightly to $3.897 billion from $3.933 billion, with a net decrease of $36 million over the nine-month period[25] - Accounts receivable increased to $7.241 billion from $5.376 billion, indicating higher sales activity[24] - Inventories rose to $5.374 billion from $4.351 billion, reflecting increased production or procurement[24] - Net cash provided by operating activities for the nine months ended September 28, 2024, was $1.742 billion, up from $1.286 billion in the same period last year[25] - Total current liabilities increased to $7.500 billion from $6.689 billion, driven by higher accounts payable and accrued liabilities[24] - Stockholders' equity grew to $56.985 billion from $55.892 billion, supported by retained earnings and additional paid-in capital[24] - Net cash used in financing activities was $1.891 billion, primarily due to common stock repurchases and tax withholding on employee equity plans[25] - Total assets grew to $69,636 million in September 2024, up from $67,886 million in June 2024 and $67,626 million in September 2023[26] - Stock-based compensation expense was $351 million in September 2024, slightly higher than $346 million in June 2024 and $353 million in September 2023[28] - Capital expenditures decreased to $132 million in September 2024, down from $154 million in June 2024 and $124 million in September 2023[26]