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	5	+= Summary =
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7		-Advanced Micro Devices (AMD) is a global semiconductor company with facilities around the world. Within the global semiconductor industry, we offer primarily:
	7	+* Advanced Micro Devices is a global semiconductor company
	8	+* AMD offers the industry’s broadest portfolio of leadership high-performance and adaptive processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs.
	9	+* AMD recently acquired Xilinx
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9		-* x86 microprocessors, as standalone devices or as incorporated as an accelerated processing unit (APU), chipsets, discrete graphics processing units (GPUs) and professional graphics processors; and
10		-* server and embedded processors, semi-custom System-on-Chip (SoC) products and technology for game consoles. We also license portions of our intellectual property portfolio.
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12		-In this section, we will describe the general financial condition and the results of operations of Advanced Micro Devices, Inc. and its wholly-owned subsidiaries (collectively, “us,” “our” or “AMD”), including a discussion of our results of operations for the quarter and six months ended July 1, 2017 compared to the quarter and six months ended June 25, 2016 , an analysis of changes in our financial condition and a discussion of our contractual obligations.
	12	+[[image:AMD0.png]]
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14		-We believe our financial results for the second quarter of 2017 reflect our continued financial growth and focus on executing our engineering milestones. Net revenue in the second quarter of 2017 was $1.22 billion, a 19% increase compared to the second quarter of 2016. The year-over-year increase was primarily due to a 51% increase in Computing and Graphics net revenue, partially offset by a 5% decrease in Enterprise, Embedded and Semi-Custom net revenue. The increase in Computing and Graphics segment net revenue was primarily due to higher sales from our graphics processors and our AMD Ryzen™ desktop processors. The decrease in Enterprise, Embedded and Semi-Custom segment net revenue was primarily driven by lower sales of our semi-custom SoCs. Our operating income for the second quarter of 2017 was $25 million compared to operating loss of $8 million in the second quarter of 2016. Gross margin, as a percentage of net revenue, for the second quarter of 2017 was 33% compared to 31% in the second quarter of 2016 due to a higher proportion of revenue from the Computing and Graphics segment as well as a richer product mix within the Computing and Graphics segment.
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16		-During the second quarter of 2017, we delivered a number of new products. We launched our AMD Ryzen™ 5 desktop processors targeting the mainstream desktop market and our AMD Ryzen PRO desktop processors for the commercial desktop market. We launched the Radeon™ 500 series graphics cards based on our 2nd generation "Polaris" architecture. Apple introduced their newest iMac, featuring our Radeon Pro 500 Series graphics processors that enables ultra-smooth gaming, fluid content creation, and support for GPU acceleration across a broad range of applications. We also announced the world's first professional dual-GPU card, the Radeon Pro Duo, and our first graphics card based on the next-generation "Vega" architecture for machine learning development and advanced visualization, the Radeon Vega Frontier Edition. We launched our AMD EPYC™ 7000 series high-performance datacenter processors, previously codenamed "Naples”, with ecosystem support from leading server members like Hewlett Packard Enterprise and Dell. This full family of high-performance processors for cloud-based and traditional enterprise servers is based on our "Zen" x86 processor core and offers a combination of processor core count, memory footprint, and I/O bandwidth.
	15	+Advanced Micro Devices is a global semiconductor company. AMD offers the industry’s broadest portfolio of leadership high-performance and adaptive processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs and deep software expertise to enable leadership computing platforms for cloud, edge and end devices.
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18		-With respect to our balance sheet, cash, cash equivalents and marketable securities as of the end of the second quarter of 2017 were $844 million, compared to $1.26 billion at end of 2016, primarily due to changes in working capital, largely driven by wafer purchases in support of anticipated sales in the third quarter of 2017.
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20		-We intend the discussion of our financial condition and results of operations that follows to provide information that will assist you in understanding our financial statements, the changes in certain key items in those financial statements from year to year and quarter to quarter, the primary factors that resulted in those changes, and how certain accounting principles, policies and estimates affect our financial statements.
	18	+= Recent Developments =
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	20	+**AMD with The Energy Sciences Network Launch of its Next-Generation, High-Performance Network**{{footnote}}https://www.amd.com/en/press-releases/2022-10-11-amd-collaborates-the-energy-sciences-network-launch-its-next-generation{{/footnote}}
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	22	+10/11/2022; AMD announced its collaboration with the Energy Sciences Network (ESnet) on the launch of ESnet6, the newest generation of the U.S. Department of Energy’s (DOE’s) high-performance network dedicated to science.
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	25	+AMD worked closely with ESnet since 2018 to integrate powerful adaptive computing for the smart and programmable network nodes of ESnet6. ESnet6’s extreme scale packet monitoring system uses AMD Alveo™ U280 FPGA-based network-attached accelerator cards at the core network switching nodes. This will enable high-touch packet processing and help improve the accuracy of network monitoring and management to enhance performance. The programmable hardware allows for new capabilities to be added for continuous innovation in the network.
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	28	+**AMD Launches Ryzen Embedded V3000 Series Processors**{{footnote}}https://www.amd.com/en/press-releases/2022-09-27-amd-launches-ryzen-embedded-v3000-series-processors-delivering-new-levels{{/footnote}}
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	30	+9/27/2022; AMD Launches Ryzen Embedded V3000 Series Processors Delivering New Levels of Performance and Power Efficiency for “Always-On” Storage and Networking
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	33	+AMD introduced the Ryzen™ Embedded V3000 Series processors, adding the high-performance “Zen 3” core to the V-Series portfolio to deliver reliable, scalable processing performance for a wide range of storage and networking system applications. With greater CPU performance1, DRAM memory transfer rate2, CPU core count3 and I/O connectivity when compared to the AMD Ryzen Embedded V1000 series, the new AMD Ryzen Embedded V3000 Series processors deliver the performance and low-power options required for some of the most demanding 24x7 operating environments and workloads.
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	35	+
	36	+**Acquisition of Xilinx**{{footnote}}https://www.amd.com/en/press-releases/2022-02-14-amd-completes-acquisition-xilinx{{/footnote}}
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	38	+02/14/2022; AMD today announced the completion of its acquisition of Xilinx in an all-stock transaction. The acquisition, originally announced on October 27, 2020, creates the industry’s high-performance and adaptive computing leader with significantly expanded scale and the strongest portfolio of leadership computing, graphics and adaptive SoC products. AMD expects the acquisition to be accretive to non-GAAP margins, non-GAAP EPS and free cash flow generation in the first year.
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	41	+[[image:AMD1.jpg]]
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	44	+= Financial Highlights =
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	46	+**AMD Reports Third Quarter 2022 Financial Results**{{footnote}}https://ir.amd.com/news-events/press-releases/detail/1098/amd-reports-third-quarter-2022-financial-results{{/footnote}}
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	48	+Nov. 01, 2022; AMD announced revenue for the third quarter of 2022 of $5.6 billion, gross margin of 42%, operating loss of $64 million, net income of $66 million and diluted earnings per share of $0.04. On a non-GAAP basis, gross margin was 50%, operating income was $1.3 billion, net income was $1.1 billion and diluted earnings per share was $0.67.
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	51	+Revenue of $5.6 billion increased 29% year-over-year driven by growth across the Data Center, Gaming and Embedded segments. Data Center segment revenue was $1.6 billion, up 45% year-over-year driven by strong sales of EPYC™ server processors.
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	54	+AMD launched the Ryzen 7000 Series processors for desktop, delivering dominant performance and leadership energy efficiency. Powered by the new “Zen 4” architecture, the Ryzen 7000 Series processors feature up to 16 cores and 32 threads and are built on an optimized, high-performance 5nm process node. AMD also announced the new Socket AM5 motherboard. AMD announced the Ryzen 7020 Series processors for mobile applications, bringing high-end performance and battery life to everyday users.
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	57	+For the full year 2022, AMD expects revenue to be approximately $23.5 billion, plus or minus $300 million, an increase of approximately 43% over 2021 led by growth in the Embedded and Data Center segments. AMD expects non-GAAP gross margin to be approximately 52% for 2022.
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	59	+
	60	+**AMD announced selected preliminary financial results for the third quarter of 2022.**{{footnote}}https://ir.amd.com/news-events/press-releases/detail/1093/amd-announces-preliminary-third-quarter-2022-financial{{/footnote}}
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	62	+Oct. 06, 2022; Third quarter revenue is expected to be approximately $5.6 billion, an increase of 29% year-over-year. AMD previously expected revenue to increase approximately 55% year-over-year at the mid-point of guidance. Preliminary results reflect lower than expected Client segment revenue resulting from reduced processor shipments due to a weaker than expected PC market and significant inventory correction actions across the PC supply chain.
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	65	+Third quarter operating expenses are expected to be approximately $2.4 billion and non-GAAP operating expenses are expected to be approximately $1.5 billion. Non-GAAP operating expenses are lower than previous expectations of $1.6 billion driven by lower variable compensation expenses in the quarter.
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	68	+**Full Year 2021 Results**
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	70	+Net revenue for 2021 was $16.4 billion, an increase of 68% compared to 2020 net revenue of $9.8 billion. Gross margin, as a percentage of net revenue for 2021, was 48%, compared to 45% in 2020. The company's operating income for 2021 improved to $3.6 billion compared to operating income of $1.4 billion for 2020. The company's net income for 2021 improved to $3.2 billion compared to $2.5 billion in the prior year. Cash, cash equivalents and short-term investments as of December 25, 2021 were $3.6 billion, compared to $2.3 billion at the end of 2020. The aggregate principal amount of total debt as of December 25, 2021 was $313 million, compared to $338 million as of December 26, 2020.{{footnote}}https://ir.amd.com/sec-filings/filter/annual-filings/content/0000002488-22-000016/0000002488-22-000016.pdf{{/footnote}}
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	73	+Computing and Graphics net revenue of $9.3 billion in 2021 increased by 45%, compared to $6.4 billion in 2020, primarily as a result of a 57% increase in average selling price, partially offset by an 8% decrease in unit shipments. The increase in average selling price was primarily driven by a richer mix of Ryzen, Radeon and AMD Instinct products. The lower unit shipments were primarily driven by a strategic focus on premium and higher end products in a tight supply environment. Computing and Graphics operating income was $2.1 billion in 2021 compared to $1.3 billion in 2020.
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	76	+Research and development expenses of $2.8 billion in 2021 increased by $862 million, or 43%, compared to $2.0 billion in 2020. The increase was primarily driven by an increase in product development costs due to an increase in headcount and higher annual employee incentives driven by improved financial performance.
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	78	+Marketing, general and administrative expenses of $1.4 billion in 2021 increased by $453 million, or 46%, compared to $995 million in 2020. The increase was primarily due to an increase in go-to-market activities in both the Computing and Graphics and Enterprise, Embedded and Semi-Custom segments, as well as an increase in headcount and higher annual employee incentives driven by improved financial performance.
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	81	+= Company Overview =
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	83	+The company's Computing and Graphics products address the need for computational and visual data processing in computing devices that include personal computers, laptops / notebooks, and workstations. In the PC market, the company design CPUs, APUs and GPUs for consumer and commercial desktops, notebooks and workstations. The company's CPUs and APUs are designed to bring performance, efficiency and modern security features to gamers, creators, consumers and commercial enterprises. The company's GPUs address the need for improved visual and data processing in various computing devices.
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	86	+[[image:AMD2.png]]
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	88	+
	89	+== Locations ==
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	91	+As of December 25, 2021, the company leased approximately 2.7 million square feet of space for research and development, engineering, administrative and warehouse use throughout the world.
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	93	+The company's headquarters is located in Santa Clara, California, and AMD has significant operations in Austin, Texas; Shanghai, China; Markham, Ontario, Canada; and Bangalore and Hyderabad, India.
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	95	+The company also have a number of regional sales offices located in commercial centers near customers, principally in the United States, Europe, Asia and Latin America.
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	98	+= References =
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	100	+{{putFootnotes/}}