ADVANCED MICRO DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Millions except per share amounts and percentages) (Unaudited)

Quarter Group
Three Months Ended Year Ended
December 28, September 28, December 30, December 28, December 30,
Quarter End Date
2024 2024 2023 2024 2023

Net revenue $ 7,658 $ 6,819 $ 6,168 $ 25,785 $ 22,680

Cost of sales 3,524 3,167 3,042 12,114 11,278

Amortization of acquisition-related intangibles 252 233 215 946 942

Total cost of sales 3,776 3,400 3,257 13,060 12,220

Gross profit 3,882 3,419 2,911 12,725 10,460

Gross margin 51% 50% 47% 49% 46%

Research and development 1,712 1,636 1,511 6,456 5,872

Marketing, general and administrative 792 721 644 2,783 2,352

Amortization of acquisition-related intangibles 332 352 420 1,448 1,869

Licensing gain (11) (14) (6) (48) (34)

Restructuring charges 186 - - 186 -

Operating income 871 724 342 1,900 401

Interest expense (19) (23) (27) (92) (106)

Other income (expense), net 37 36 49 181 197

Income before income taxes and equity income 889 737 364 1,989 492

Income tax provision (benefit) 419 (27) (297) 381 (346)

Equity income in investee 12 7 6 33 16

Net income $ 482 $ 771 $ 667 $ 1,641 $ 854

Earnings per share

Basic $ 0.30 $ 0.48 $ 0.41 $ 1.01 $ 0.53

Diluted $ 0.29 $ 0.47 $ 0.41 $ 1.00 $ 0.53

Shares used in per share calculation

Basic 1,623 1,620 1,616 1,620 1,614

Diluted 1,634 1,636 1,628 1,637 1,625

ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)

December 28, December 30,

2024 2023
(Unaudited) —
ASSETS
Current assets: —
Cash and cash equivalents $ 3,787 $ 3,933
Short-term investments 1,345 1,840
Accounts receivable, net 6,192 4,323
Inventories 5,734 4,351
Receivables from related parties 113 9
Prepaid expenses and other current assets 1,878 2,312
Total current assets 19,049 16,768
Property and equipment, net 1,802 1,589
Operating lease right-of-use assets 623 633
Goodwill 24,839 24,262
Acquisition-related intangibles, net 18,930 21,363
Investment: equity method 149 99
Deferred tax assets 688 366
Other non-current assets 3,146 2,805
Total Assets $ 69,226 $ 67,885

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $ 1,990 $ 2,055
Payables to related parties 476 363
Accrued liabilities 4,260 3,082
Current portion of long-term debt, net - 751
Other current liabilities 555 438
Total current liabilities 7,281 6,689
Long-term debt, net of current portion 1,721 1,717
Long-term operating lease liabilities 491 535
Deferred tax liabilities 349 1,202
Other long-term liabilities 1,816 1,850

Stockholders' equity:
Capital stock:
Common stock, par value 17 17
Additional paid-in capital 61,362 59,676
Treasury stock, at cost (6,106) (4,514)
Retained earnings 2,364 723
Accumulated other comprehensive loss (69) (10)
Total stockholders' equity 57,568 55,892
Total Liabilities and Stockholders' Equity $ 69,226 $ 67,885
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions) (Unaudited)

Quarter Group Three Months Ended Year Ended

December 28, December 30, December 28, December 30,
Quarter End Date
2024 2023 2024 2023
Cash flows from operating activities:
Net income $ 482 $ 667 $ 1,641 $ 854
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 172 164 671 642
Amortization of acquisition-related intangibles 583 635 2,393 2,811
Stock-based compensation 339 374 1,407 1,384
Amortization of operating lease right-of-use assets 31 25 113 98
Deferred income taxes (300) (219) (1,163) (1,019)
Inventory loss at contract manufacturer - - 65 -
Other 62 (23) 12 (54)
Changes in operating assets and liabilities
Accounts receivable, net 96 (379) (1,865) (1,339)
Inventories (362) 94 (1,458) (580)
Prepaid expenses and other assets 494 (34) 343 (383)
Receivables from and payables to related parties, net 30 29 108 (107)
Accounts payable (585) (181) (109) (419)
Accrued and other liabilities 257 (771) 883 (221)
Net cash provided by operating activities 1,299 381 3,041 1,667
Cash flows from investing activities:
Purchases of property and equipment (208) (139) (636) (546)
Purchases of short-term investments (786) (410) (1,493) (3,722)
Proceeds from maturity of short-term investments 65 770 1,416 2,687
Proceeds from sale of short-term investments 25 52 616 300
Acquisitions, net of cash acquired - (117) (548) (131)
Related party equity method investment - - (17) -
Issuance of loan to related party (100) - (100) -
Purchase of strategic investments (210) (6) (341) (11)
Other - - 2 -
Net cash provided by (used in) investing activities (1,214) 150 (1,101) (1,423)
Cash flows from financing activities:
Repayment of debt - - (750) -
Proceeds from sales of common stock through employee equity plans 127 120 279 268
Repurchases of common stock (256) (233) (862) (985)
Common stock repurchases for tax withholding on employee equity plans (42) (45) (728) (427)
Other - (1) (1) (2)
Net cash used in financing activities (171) (159) (2,062) (1,146)
Net increase (decrease) in cash, cash equivalents and restricted cash (86) 372 (122) (902)
Cash, cash equivalents and restricted cash at beginning of period 3,897 3,561 3,933 4,835
Cash, cash equivalents and restricted cash at end of period $ 3,811 $ 3,933 $ 3,811 $ 3,933
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions) (Unaudited)

Quarter Group Three Months Ended Year Ended

(1) December 28, September 28, December 30, December 28, December 30,
Segment and Category Information
2024 2024 2023 2024 2023

Data Center
Net revenue $ 3,859 $ 3,549 $ 2,282 $ 12,579 $ 6,496
Operating income $ 1,157 $ 1,041 $ 666 $ 3,482 $ 1,267
Client
Net revenue $ 2,313 $ 1,881 $ 1,461 $ 7,054 $ 4,651
Operating income (loss) $ 446 $ 276 $ 55 $ 897 $ (46)
Gaming
Net revenue $ 563 $ 462 $ 1,368 $ 2,595 $ 6,212
Operating income $ 50 $ 12 $ 224 $ 290 $ 971
Embedded
Net revenue $ 923 $ 927 $ 1,057 $ 3,557 $ 5,321
Operating income $ 362 $ 372 $ 461 $ 1,421 $ 2,628
All Other
Net revenue $ - $ - $ - $ - $ -
Operating loss $ (1,144) $ (977) $ (1,064) $ (4,190) $ (4,419)
Total
Net revenue $ 7,658 $ 6,819 $ 6,168 $ 25,785 $ 22,680
Operating income $ 871 $ 724 $ 342 $ 1,900 $ 401

Other Data
Capital expenditures $ 208 $ 132 $ 139 $ 636 $ 546
(2)
Adjusted EBITDA $ 2,212 $ 1,887 $ 1,576 $ 6,824 $ 5,496
Cash, cash equivalents and short-term investments $ 5,132 $ 4,544 $ 5,773 $ 5,132 $ 5,773
(3)
Free cash flow $ 1,091 $ 496 $ 242 $ 2,405 $ 1,121
Total assets $ 69,226 $ 69,636 $ 67,885 $ 69,226 $ 67,885
Total debt $ 1,721 $ 1,720 $ 2,468 $ 1,721 $ 2,468

See footnotes on the next page

(1) The Data Center segment primarily includes Artificial Intelligence (AI) accelerators, server microprocessors (CPUs), graphics processing units (GPUs), accelerated
processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs) and Adaptive System-on-
Chip (SoC) products for data centers.
The Client segment primarily includes CPUs, APUs, and chipsets for desktops and notebooks.
The Gaming segment primarily includes discrete GPUs, and semi-custom SoC products and development services.
The Embedded segment primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products.
From time to time, the Company may also sell or license portions of its IP portfolio.
All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments, such as amortization of acquisition-related
intangible asset, employee stock-based compensation expense, acquisition-related and other costs, inventory loss at contract manufacturer, restructuring charges and
licensing gain.

(2)
Reconciliation of GAAP Net Income to Adjusted EBITDA

Quarter Group Three Months Ended Year Ended

December 28, September 28, December 30, December 28, December 30,
(Millions) (Unaudited)
2024 2024 2023 2024 2023
GAAP net income $ 482 $ 771 $ 667 $ 1,641 $ 854
Interest expense 19 23 27 92 106
Other (income) expense, net (37) (36) (49) (181) (197)
Income tax provision (benefit) 419 (27) (297) 381 (346)
Equity income in investee (12) (7) (6) (33) (16)
Stock-based compensation 339 351 374 1,407 1,380
Depreciation and amortization 186 171 164 685 642
Amortization of acquisition-related intangibles 584 585 635 2,394 2,811
Inventory loss at contract manufacturer - - - 65 -
Acquisition-related and other costs 46 56 61 187 262
Restructuring charges 186 - - 186 -
Adjusted EBITDA $ 2,212 $ 1,887 $ 1,576 $ 6,824 $ 5,496

The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income
for interest expense, other (income) expense, net, income tax provision (benefit), equity income in investee, stock-based compensation, depreciation and amortization
expense, amortization of acquisition-related intangibles, inventory loss at contract manufacturer, acquisition-related and other costs, and restructuring charges. The Company
calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to
borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across
reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of
Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as
an alternative to the GAAP operating measure of income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted
EBITDA does not take into account changes in certain assets and liabilities that can affect cash flows.

(3)
Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow

Three Months Ended Year Ended

December 28, September 28, December 30, December 28, December 30,
(Millions except percentages) (Unaudited)
2024 2024 2023 2024 2023
GAAP net cash provided by operating activities $ 1,299 $ 628 $ 381 $ 3,041 $ 1,667
Operating cash flow margin % 17% 9% 6% 12% 7%
Purchases of property and equipment (208) (132) (139) (636) (546)
Free cash flow $ 1,091 $ 496 $ 242 $ 2,405 $ 1,121
Free cash flow margin % 14% 7% 4% 9% 5%

The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by
operating activities for capital expenditures, and free cash flow margin % is free cash flow expressed as a percentage of the Company's net revenue. The Company
calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of
these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry.
Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities.

The Company has provided reconciliations within the earnings press release of these Non-GAAP financial measures to the most directly comparable GAAP financial
measures.
 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share data) (Unaudited)
Quarter Group Three Months Ended Year Ended
December 28, September 28, December 30, December 28, December 30,
Quarter End Date
2024 2024 2023 2024 2023
GAAP gross profit $ 3,882 $ 3,419 $ 2,911 $ 12,725 $ 10,460
GAAP gross margin 51% 50% 47% 49% 46%
Stock-based compensation 6 5 6 22 30
Amortization of acquisition-related intangibles 252 233 215 946 942
Acquisition-related and other costs (1)
- - 1 1 4
Inventory loss at contract manufacturer (2)
- - - 65 -
Non-GAAP gross profit $ 4,140 $ 3,657 $ 3,133 $ 13,759 $ 11,436
Non-GAAP gross margin 54% 54% 51% 53% 50%

GAAP operating expenses $ 3,022 $ 2,709 $ 2,575 $ 10,873 $ 10,093

GAAP operating expenses/revenue % 39% 40% 42% 42% 45%
Stock-based compensation 333 346 368 1,385 1,350
Amortization of acquisition-related intangibles 332 352 420 1,448 1,869
Acquisition-related and other costs (1)
46 55 60 185 258
Restructuring charges (3)
186 - - 186 -
Non-GAAP operating expenses $ 2,125 $ 1,956 $ 1,727 $ 7,669 $ 6,616
Non-GAAP operating expenses/revenue % 28% 29% 28% 30% 29%

GAAP operating income $ 871 $ 724 $ 342 $ 1,900 $ 401

GAAP operating margin 11% 11% 6% 7% 2%
Stock-based compensation 339 351 374 1,407 1,380
Amortization of acquisition-related intangibles 584 585 635 2,394 2,811
Acquisition-related and other costs (1)
46 55 61 186 262
Inventory loss at contract manufacturer (2)
- - - 65 -
Restructuring charges (3)
186 - - 186 -
Non-GAAP operating income $ 2,026 $ 1,715 $ 1,412 $ 6,138 $ 4,854
Non-GAAP operating margin 26% 25% 23% 24% 21%

Quarter Group Three Months Ended Year Ended

December 28, September 28, December 30, December 28, December 30,
Quarter End Date
2024 2024 2023 2024 2023
GAAP net income / earnings per share $ 482 $ 0.29 $ 771 $ 0.47 $ 667 $ 0.41 $ 1,641 $ 1.00 $ 854 $ 0.53
(Gains) losses on equity investments, net - - (1) - 1 - 2 - (1) -
Stock-based compensation 339 0.21 351 0.21 374 0.23 1,407 0.86 1,380 0.85
Equity income in investee (12) (0.01) (7) - (6) - (33) (0.02) (16) (0.01)
Amortization of acquisition-related intangibles 584 0.36 585 0.36 635 0.39 2,394 1.46 2,811 1.73
Acquisition-related and other costs (1)
46 0.03 56 0.03 61 0.04 187 0.11 262 0.16
Inventory loss at contract manufacturer (2)
- - - - - - 65 0.04 - -
Restructuring charges (3)
186 0.11 - - - - 186 0.11 - -
Income tax provision 152 0.10 (251) (0.15) (483) (0.30) (429) (0.25) (988) (0.61)
Non-GAAP net income / earnings per share $ 1,777 $ 1.09 $ 1,504 $ 0.92 $ 1,249 $ 0.77 $ 5,420 $ 3.31 $ 4,302 $ 2.65

(1) Acquisition-related and other costs primarily include transaction costs, purchase price fair value adjustments for inventory, certain compensation charges, contract termination costs
and workforce rebalancing charges.
(2)
Inventory loss at contract manufacturer is related to an incident at a third-party contract manufacturing facility.
(3)
Restructuring charges are related to the 2024 Restructuring Plan which comprised of employee severance charges and non-cash asset impairments.