Advanced Micro Devices (AMD) reported a net revenue of $22.7 billion for the year 2023, marking a 4% decrease from the previous year's $23.6 billion. The decline was attributed to a 25% drop in Client segment revenue due to lower processor sales and a 9% decrease in Gaming segment revenue, primarily from reduced semi-custom product sales. However, this was partially offset by a 17% increase in Embedded segment revenue, largely from the full-year inclusion of Xilinx product revenue, and a 7% rise in Data Center segment revenue, driven by higher sales of AMD Instinct GPUs and 4th Gen AMD EPYC CPUs. Gross margin improved slightly to 46% in 2023 from 45% in 2022, while operating income fell to $401 million from $1.3 billion in the prior year, mainly due to lower Client...Show More

Advanced Micro Devices (AMD) reported a net revenue of $22.7 billion for the year 2023, marking a 4% decrease from the previous year's $23.6 billion. The decline was attributed to a 25% drop in Client segment revenue due to lower processor sales and a 9% decrease in Gaming segment revenue, primarily from reduced semi-custom product sales. However, this was partially offset by a 17% increase in Embedded segment revenue, largely from the full-year inclusion of Xilinx product revenue, and a 7% rise in Data Center segment revenue, driven by higher sales of AMD Instinct GPUs and 4th Gen AMD EPYC CPUs. Gross margin improved slightly to 46% in 2023 from 45% in 2022, while operating income fell to $401 million from $1.3 billion in the prior year, mainly due to lower Client segment performance and increased R&D investments. Net income also decreased to $854 million from $1.3 billion. AMD's cash, cash equivalents, and short-term investments totaled $5.8 billion at the end of 2023. The company returned $985 million to shareholders through the repurchase of 9.7 million shares under its stock repurchase program, with $5.6 billion remaining available for future repurchases. Throughout 2023, AMD launched multiple products across its business segments and made significant progress in its AI strategy. The company introduced new AMD EPYC processors, AMD Instinct accelerators, and expanded its Embedded processor portfolio. In the Client product segment, AMD launched Ryzen 7000 Series Mobile processors and expanded its commercial offerings with AMD Ryzen PRO 7000 Series Mobile processors. The Gaming segment saw the introduction of AMD Radeon RX 7900M graphics for laptops and AMD Radeon PRO W7000 Series graphics. AMD's AI strategy focused on delivering a broad portfolio of CPUs, GPUs, and adaptive computing solutions, extending its open software platform, and expanding ecosystem engagements. Strategic acquisitions, including Mipsology SAS and Nod, Inc., strengthened AMD's AI software capabilities.