Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

									Three Months Ended
															March 29, 2025						March 30, 2024
															(In millions, except per share amounts)
Net revenue															$	7,438					$	5,473
Cost of sales															3,451						2,683
Amortization of acquisition-related intangibles															251						230
Total cost of sales															3,702						2,913
Gross profit															3,736						2,560
Research and development															1,728						1,525
Marketing, general and administrative															886						607
Amortization of acquisition-related intangibles															316						392
Total operating expenses															2,930						2,524
Operating income															806						36
Interest expense															(20)						(25)
Other income (expense), net															39						53
Income before income taxes and equity income															825						64
Income tax provision (benefit)															123						(52)
Equity income in investee															7						7
Net income															$	709					$	123
Earnings per share
Basic															$	0.44					$	0.08
Diluted															$	0.44					$	0.07
Shares used in per share calculation
Basic															1,620						1,617
Diluted															1,626						1,639

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

									Three Months Ended
															March 29, 2025						March 30, 2024
															(In millions)
Net income															$	709					$	123
Other comprehensive income (loss), net of tax:
Net change in unrealized gains (losses) on cash flow hedges															29						(18)
Total comprehensive income															$	738					$	105

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

			March 29, 2025						December 28, 2024
			(In millions, except par value amounts)
ASSETS
Current assets:
Cash and cash equivalents			$	6,049					$	3,787
Short-term investments			1,261						1,345
Accounts receivable, net			5,443						6,192
Inventories			6,416						5,734
Prepaid expenses and other current assets			2,426						1,991
Total current assets			21,595						19,049
Property and equipment, net			1,921						1,802
Goodwill			24,839						24,839
Acquisition-related intangibles, net			18,363						18,930
Deferred tax assets			845						688
Other non-current assets			3,987						3,918
Total assets			$	71,550					$	69,226
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable			$	2,206					$	2,466
Accrued liabilities			3,876						4,260
Short-term borrowings			947						—
Other current liabilities			674						555
Total current liabilities			7,703						7,281
Long-term debt			3,217						1,721
Long-term operating lease liabilities			567						491
Deferred tax liabilities			343						349
Other long-term liabilities			1,839						1,816
Commitments and contingencies (See Note 12)
Stockholders’ equity:
Capital stock:
Common stock, par value $0.01; shares authorized: 2,250; shares issued: 1,681 and 1,680; shares outstanding: 1,616 and 1,622			17						17
Additional paid-in capital			61,730						61,362
Treasury stock, at cost (shares held: 65 and 58)			(6,899)						(6,106)
Retained earnings			3,073						2,364
Accumulated other comprehensive loss			(40)						(69)
Total stockholders’ equity			57,881						57,568
Total liabilities and stockholders’ equity			$	71,550					$	69,226

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

			Three Months Ended
			March 29, 2025						March 30, 2024
			(In millions)
Cash flows from operating activities:
Net income			$	709					$	123
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			175						162
Amortization of acquisition-related intangibles			567						622
Stock-based compensation			364						371
Deferred income taxes			(167)						(66)
Inventory loss at contract manufacturer			—						65
Other			39						4
Changes in operating assets and liabilities:
Accounts receivable, net			748						913
Inventories			(682)						(368)
Prepaid expenses and current assets			(237)						(919)
Accounts payable			(289)						(561)
Accrued and other liabilities			(288)						175
Net cash provided by operating activities			939						521
Cash flows from investing activities:
Purchases of property and equipment			(212)						(142)
Purchases of short-term investments			(304)						(433)
Proceeds from maturity of short-term investments			365						441
Proceeds from sale of short-term investments			33						2
Purchases of strategic investments			(239)						(4)
Other			—						1
Net cash used in investing activities			(357)						(135)
Cash flows from financing activities:
Proceeds from long-term debt issuance, net of issuance costs			1,494						—
Proceeds from commercial paper issuance, net of discount			947						—
Proceeds from sales of common stock through employee equity plans			4						5
Repurchases of common stock			(749)						(4)
Stock repurchases for tax withholding on employee equity plans			(30)						(129)
Other			—						(1)
Net cash provided by (used in) financing activities			1,666						(129)
Net increase in cash, cash equivalents and restricted cash			2,248						257
Cash, cash equivalents and restricted cash at beginning of period			3,811						3,933
Cash, cash equivalents and restricted cash at end of period			$	6,059					$	4,190

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

			Three Months Ended
			March 29, 2025						March 30, 2024
			(In millions)
Supplemental cash flow information:
Cash paid during the period for:
Income taxes, net of refunds			$	128					$	87
Non-cash investing and financing activities:
Purchases of property and equipment, accrued but not paid			$	147					$	102
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents			$	6,049					$	4,190
Restricted cash included in Prepaid expenses and other current assets			10						$	—
Total cash, cash equivalents and restricted cash			$	6,059					$	4,190

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

									Three Months Ended
															March 29, 2025						March 30, 2024
															(In millions)
Capital stock:
Common stock, par value
Balance, beginning of period															$	17					$	17
Balance, end of period															$	17					$	17
Additional paid-in capital
Balance, beginning of period															$	61,362					$	59,676
Common stock issued under employee equity plans															4						6
Stock-based compensation															364						371
Balance, end of period															$	61,730					$	60,053
Treasury stock
Balance, beginning of period															$	(6,106)					$	(4,514)
Repurchases of common stock															(756)						(4)
Common stock repurchases for tax withholding on employee equity plans															(37)						(172)
Balance, end of period															$	(6,899)					$	(4,690)
Retained earnings:
Balance, beginning of period															$	2,364					$	723
Net income															709						123
Balance, end of period															$	3,073					$	846
Accumulated other comprehensive income (loss):
Balance, beginning of period															$	(69)					$	(10)
Other comprehensive income (loss)															29						(18)
Balance, end of period															$	(40)					$	(28)
Total stockholders' equity															$	57,881					$	56,198

See accompanying notes.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

NOTE 1 – The Company

Advanced Micro Devices, Inc. is a global semiconductor company. References herein to AMD or the Company mean Advanced Micro Devices, Inc. and its consolidated subsidiaries. AMD’s products include Artificial Intelligence (AI) accelerators, microprocessors (CPUs) for servers and graphics processing units (GPUs), as standalone devices or as incorporated into accelerated processing units (APUs), chipsets, data center and professional GPUs, embedded processors, semi-custom System-on-Chip (SoC) products, microprocessor and SoC development services and technology, data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), System on Modules (SOMs), Smart Network Interface Cards (SmartNICs), and Adaptive SoC products. From time to time, the Company may also sell or license portions of its intellectual property (IP) portfolio.

NOTE 2 – Basis of Presentation and Significant Accounting Policies

Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of AMD have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the three months ended March 29, 2025 shown in this report are not necessarily indicative of results to be expected for the full year ending December 27, 2025 or any other future period. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s results of operations, financial position, cash flows and stockholders’ equity. All such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024. Certain amounts from fiscal year 2024 have been reclassified to conform to current period presentation. These include the presentation of Payables to related parties within Accounts payable, Operating lease right-of-use assets and Investment: equity method within Other non-current assets, and Receivables from related parties within Prepaid expenses and other current assets.

The Company uses a 52- or 53-week fiscal year ending on the last Saturday in December. The three months ended March 29, 2025 and March 30, 2024 each consisted of 13 weeks.

Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the financial statements. Areas where management uses subjective judgment include, but are not limited to, revenue allowances, inventory valuation, valuation of goodwill, long-lived and intangible assets, and income taxes.

Significant Accounting Policies. There have been no material changes to the Company’s significant accounting policies in Note 2 - Basis of Presentation and Significant Accounting Policies, of the Notes to Condensed Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024.

NOTE 3 – Supplemental Financial Statement Information

Inventories			March 29, 2025						December 28, 2024
			(In millions)
Raw materials			$	560					$	351
Work in process			4,498						4,289
Finished goods			1,358						1,094
Total inventories			$	6,416					$	5,734

Prepaid Expenses and Other Current Assets			March 29, 2025						December 28, 2024
			(In millions)
Unbilled receivables			$	843					$	628
Other			1,583						1,363
Total prepaid expenses and other current assets			$	2,426					$	1,991

Property and Equipment, net			March 29, 2025						December 28, 2024
			(In millions)
Land, building and leasehold improvements			$	881					$	853
Equipment			2,864						2,798
Construction in progress			445						324
Property and equipment, gross			4,190						3,975
Accumulated depreciation			(2,269)						(2,173)
Total property and equipment, net			$	1,921					$	1,802

Accrued Liabilities			March 29, 2025						December 28, 2024
			(In millions)
Customer-related liabilities			$	1,282					$	1,349
Accrued marketing programs			1,000						1,063
Accrued compensation and benefits			872						1,174
Other accrued expenses and liabilities			722						674
Total accrued liabilities			$	3,876					$	4,260

Revenue

Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied include amounts received from customers and amounts that will be invoiced and recognized as revenue in future periods for development services, IP licensing and product revenue. As of March 29, 2025, the aggregate transaction price allocated to remaining performance obligations under contracts with an original expected duration of more than one year was $74 million, of which $56 million is expected to be recognized in the next 12 months. The revenue allocated to remaining performance obligations does not include amounts which have an original expected duration of one year or less.

Revenue recognized over time associated with custom products and development services accounted for approximately 9% and 16% of the Company’s revenue for the three months ended March 29, 2025 and March 30, 2024, respectively.

NOTE 4 – Segment Reporting

Management, including the Chief Operating Decision Maker (CODM), who is the Company’s Chief Executive Officer, reviews and assesses operating performance using segment net revenue, cost of sales and operating expenses, and operating income (loss). These performance measures include the allocation of expenses to the reportable segments based on management’s judgment. The CODM is regularly provided segment operating income to assess relative segment performance.

Beginning with the fiscal year ending December 27, 2025, the Company changed its segment structure, combining the Client and Gaming segments into one reportable segment to align with how the Company manages its business. All prior period segment data were retrospectively adjusted. The Company’s three reportable segments are:

• the Data Center segment, which primarily includes Artificial Intelligence (AI) accelerators, microprocessors (CPUs) for servers, 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 and Gaming segment, which primarily includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services; and

• the Embedded segment, which 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.

In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category primarily includes certain expenses and credits that are not allocated to any of the reportable segments because the CODM does not consider these expenses and credits in evaluating the performance of the reportable segments. This category primarily includes amortization of acquisition-related intangibles, employee stock-based compensation expense, acquisition-related and other costs, inventory loss at contract manufacturer, and restructuring charges. Acquisition-related and other costs primarily include certain compensation charges and transaction costs.

The following table provides a summary of net revenue, cost of sales and operating expenses, and operating income (loss) by segment. Segment cost of sales and operating expenses primarily include materials, external manufacturing, labor and marketing and advertising costs, and exclude expenses and credits that are recorded within the All Other category. Each of the Client and Gaming businesses do not qualify as a reportable operating segment, however, the Company continues to separately disclose revenue for each business.

									Three Months Ended
															March 29, 2025						March 30, 2024
															(In millions)
Net revenue:
Data Center															$	3,674					$	2,337
Client and Gaming
Client															$	2,294					$	1,368
Gaming															647						922
Total Client and Gaming															2,941						2,290
Embedded															823						846
Total net revenue															$	7,438					$	5,473
Cost of sales and operating expenses:
Data Center															$	2,742					$	1,796
Client and Gaming															2,445						2,053
Embedded															495						504
All other															950						1,084
Total cost of sales and operating expenses															$	6,632					$	5,437
Operating income (loss):
Data Center															$	932					$	541
Client and Gaming															496						237
Embedded															328						342
All other (1)															(950)						(1,084)
Total operating income															$	806					$	36

(1)			For the three months ended March 29, 2025, all other operating losses primarily included $567 million of amortization of acquisition-related intangibles, and $364 million of stock-based compensation expense. For the three months ended March 30, 2024, all other operating losses primarily included $622 million of amortization of acquisition-related intangibles, $371 million of stock-based compensation expense, and $65 million of inventory loss at a contract manufacturer.

NOTE 5 – Goodwill and Acquisition-related Intangibles, net

Goodwill

In the first quarter of fiscal year 2025, the Company assigned goodwill to its updated reporting units to reflect the change in its segment reporting structure. The Company performed a goodwill impairment test immediately prior to and after the segment change and determined that no indicators of impairment to goodwill existed. The carrying amount of goodwill was reassigned as follows:

															Before segment change												After segment change
(in millions)			Data Center						Embedded						Client						Gaming						Client and Gaming						Total
December 28, 2024			$	3,403					$	21,072					$	126					$	238					$	—					$	24,839
Reassignment due to segment change			—						—						(126)						(238)						364						—
March 29, 2025			$	3,403					$	21,072					$	—					$	—					$	364					$	24,839

Acquisition-related Intangibles, net

The following table summarizes Acquisition-related Intangibles Assets:

			March 29, 2025																		December 28, 2024
			Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
			(In millions)																		(In millions)
Developed technology			$	13,408					$	(2,779)					$	10,629					$	13,408					$	(2,529)					$	10,879
Customer relationships			12,324						(5,420)						6,904						12,324						(5,124)						7,200
Product trademarks			914						(246)						668						914						(225)						689
Acquisition-related intangible assets subject to amortization			26,646						(8,445)						18,201						26,646						(7,878)						18,768
In-process research and development (IPR&D) not subject to amortization			162						—						162						162						—						162
Total acquisition-related intangible assets, net			$	26,808					$	(8,445)					$	18,363					$	26,808					$	(7,878)					$	18,930

Acquisition-related intangible amortization expense was $567 million and $622 million for the three months ended March 29, 2025 and March 30, 2024, respectively.

Based on the carrying value of acquisition-related intangibles recorded as of March 29, 2025, and assuming no subsequent impairment of the underlying assets, the estimated annual amortization expense for acquisition-related intangibles is expected to be as follows:

Fiscal Year			(In millions)
Remainder of 2025			$	1,659
2026			2,111
2027			1,993
2028			1,885
2029			1,659
2030 and thereafter			8,894
Total			$	18,201

NOTE 6 – Related Party — Equity Joint Ventures

ATMP Joint Ventures

The Company holds a 15% equity interest in two joint ventures (collectively, the ATMP JV) with affiliates of Tongfu Microelectronics Co., Ltd, a Chinese joint stock company. The Company has no obligation to fund the ATMP JV. The Company accounts for its equity interests in the ATMP JV under the equity method of accounting due to its significant influence over the ATMP JV. The carrying value of the Company’s investment in ATMP JV was $157 million and $149 million as of March 29, 2025 and December 28, 2024, respectively, and is recorded within Other non-current assets on the Company’s Condensed Consolidated Balance Sheets.

The ATMP JV provides assembly, test, mark and packaging (ATMP) services to the Company. The Company’s purchases from the ATMP JV during the three months ended March 29, 2025 and March 30, 2024 were $497 million and $450 million, respectively. As of March 29, 2025 and December 28, 2024, the amounts payable to the ATMP JV were $434 million and $476 million, respectively, and are included in Accounts payable on the Condensed Consolidated Balance Sheets.

On October 9, 2024, the Company entered into a one-year term loan agreement with one of the ATMP JVs for $100 million to provide funds for the ATMP JV’s general corporate purposes. The loan bears interest, payable quarterly, at the three months term Secured Overnight Financing Rate (SOFR) plus 50 basis points. The loan receivable is included within Prepaid expenses and other current assets on the Company’s Condensed Consolidated Balance Sheets.

During each of the three months ended March 29, 2025 and March 30, 2024, the Company recorded income related to the ATMP JV of $7 million in Equity income in investee on its Condensed Consolidated Statements of Operations.

NOTE 7 – Debt, Revolving Credit Facility and Commercial Paper Program

Debt

The Company’s debt as of March 29, 2025 and December 28, 2024 consisted of the following:

			March 29, 2025						December 28, 2024
			(In millions)
4.212% Senior Notes Due 2026 (4.212% Notes)			$	875					$	—
4.319% Senior Notes Due 2028 (4.319% Notes)			625						—
2.375% Senior Notes Due 2030 (2.375% Notes)			750						750
3.924% Senior Notes Due 2032 (3.924% Notes)			500						500
4.393% Senior Notes Due 2052 (4.393% Notes)			500						500
Total debt (principal amount)			3,250						1,750
Unamortized debt discount and issuance costs			(33)						(29)
Total long-term debt (net)			$	3,217					$	1,721

4.212% Senior Notes Due 2026 and 4.319% Senior Notes Due 2028

On March 24, 2025, the Company issued 4.212% Notes and 4.319% Notes in aggregate principal amount of $1.5 billion. The 4.212% Notes and the 4.319% Notes are general unsecured senior obligations of the Company. The interest is payable semi-annually on March 24 and September 24 of each year, commencing on September 24, 2025.

The Company may redeem some or all of the 4.212% Notes prior to September 24, 2026 at a price equal to the greater of the present value of the principal amount and future interest through the maturity of the 4.212% Notes or 100% of the principal amount plus accrued and unpaid interest. The Company may redeem some or all of the 4.319% Notes prior to February 24, 2028, one month prior to the maturity date of the 4.319% Notes (4.319% Notes Par Call Date), at a price equal to the greater of the present value of the principal amount and future interest through the 4.319% Notes Par Call Date or 100% of the principal amount plus accrued and unpaid interest. On or after February 24, 2028, the Company may also redeem some or all of the 4.319% Notes at 100% of the principal amount plus accrued and unpaid interest.

Holders of the 4.212% Notes and the 4.319% Notes have the right to require the Company to repurchase all or a portion of the 4.212% Notes or 4.319% Notes in the event that the Company undergoes a change of control, at a repurchase price of 101% of the principal amount plus accrued and unpaid interest. Additionally, an event of default may result in the acceleration of the maturity of the 4.212% Notes and 4.319% Notes.

2.375% Senior Notes Due 2030, 3.924% Senior Notes Due 2032 and 4.393% Senior Notes Due 2052

The 2.375% Notes, 3.924% Notes and 4.393% Notes are general unsecured senior obligations of the Company with semi-annual fixed interest payments due on June 1 and December 1.

As of March 29, 2025, the Company was in compliance with the covenants associated with its debt.

Revolving Credit Facility

The Company has $3.0 billion available under an unsecured revolving credit facility that expires on April 29, 2027. During the three months ended March 29, 2025, the Company did not borrow under the revolving credit facility and as of March 29, 2025 and December 28, 2024, the Company had no outstanding borrowings under the revolving credit facility. As of March 29, 2025, the Company was in compliance with the covenants under the revolving credit facility.

Commercial Paper Program

The Company has a commercial paper program under which it can issue unsecured commercial paper notes up to a principal amount of $3.0 billion at any time with maturities of up to 397 days from the date of issue. The commercial paper will be sold at a discount from par or, alternatively, will be sold at par and bear interest at rates that will vary based on market conditions at the time of the issuance. During the three months ended March 29, 2025, the Company issued $950 million in aggregate principal amount of commercial paper, which was outstanding as of March 29, 2025. The outstanding commercial paper have a weighted-average interest rate of 4.35% with maturities of up to 60 days. As of December 28, 2024, the Company had no commercial paper outstanding. Outstanding commercial paper is reported within Short-term borrowings in the Condensed Consolidated Balance Sheets.

NOTE 8 – Financial Instruments

Financial Instruments Recorded at Fair Value on a Recurring Basis

			March 29, 2025																								December 28, 2024
(In millions)			Level 1						Level 2						Level 3						Total						Level 1						Level 2						Level 3						Total
Cash equivalents
Money market funds			$	3,387					$	—					$	—					$	3,387					$	1,496					$	—					$	—					$	1,496
Corporate debt securities			—						1,150						—						1,150						—						806						—						806
U.S. government and agency securities			452						—						—						452						130						—						—						130
Non-U.S. government and agency securities			—						85						—						85						—						116						—						116
Time deposits and certificates of deposits			—						91						—						91						—						107						—						107
Short-term investments
Corporate debt securities			—						778						—						778						—						814						—						814
Time deposits and certificates of deposits			—						10						—						10						—						10						—						10
Asset-backed and mortgage-backed securities			—						26						—						26						—						28						—						28
U.S. government and agency securities			313						84						—						397						332						82						—						414
Non-U.S. government and agency securities			—						50						—						50						—						79						—						79
Other non-current assets
Time deposits and certificates of deposits			—						—						—						—						—						1						—						1
Deferred compensation plan and other investments			192						—						65						257						197						—						25						222
Total assets measured at fair value			$	4,344					$	2,274					$	65					$	6,683					$	2,155					$	2,043					$	25					$	4,223

Deferred compensation plan investments are primarily mutual fund investments held in a Rabbi trust established to maintain the Company’s executive deferred compensation plan.

The following is a summary of cash equivalents and short-term investments:

			March 29, 2025																								December 28, 2024
			Cost/ Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value						Cost/ Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
			(in millions)																								(in millions)
Asset-backed and mortgage-backed securities			$	28					$	—					$	(2)					$	26					$	30					$	—					$	(2)					$	28
Corporate debt securities			1,927						1						—						1,928						1,621						—						(1)						1,620
Money market funds			3,387						—						—						3,387						1,496						—						—						1,496
Time deposits and certificates of deposits			102						—						—						102						117						—						—						117
U.S. government and agency securities			848						1						—						849						544						—						—						544
Non-U.S. government and agency securities			134						—						—						134						195						—						—						195
			$	6,426					$	2					$	(2)					$	6,426					$	4,003					$	—					$	(3)					$	4,000

As of March 29, 2025 and December 28, 2024, the Company did not have material available-for-sale debt securities which have been in a continuous unrealized loss position of more than twelve months.

The contractual maturities of investments classified as available-for-sale are as follows:

			March 29, 2025												December 28, 2024
			Amortized Cost						Fair Value						Amortized Cost						Fair Value
			(In millions)												(In millions)
Due within 1 year			$	2,606					$	2,607					$	2,073					$	2,073
Due in 1 year through 5 years			407						408						406						405
Due in 5 years and later			26						24						27						26
			$	3,039					$	3,039					$	2,506					$	2,504

Financial Instruments Not Recorded at Fair Value

The carrying amounts and estimated fair values of the Company’s long-term debt are as follows:

			March 29, 2025												December 28, 2024
			Carrying Amount						Estimated Fair Value						Carrying Amount						Estimated Fair Value
			(In millions)												(In millions)
Long-term debt			3,217						3,080						1,721						1,543

The estimated fair value of the Company’s long-term debt is based on Level 2 inputs of quoted prices for the Company’s debt and comparable instruments in inactive markets.

The fair value of the Company’s accounts receivable, accounts payable, commercial paper and other short-term obligations approximate their carrying value based on existing terms.

Financial Instruments Measured at Fair Value on a Non-Recurring Basis

As of March 29, 2025 and December 28, 2024, the Company had non-marketable securities in privately-held companies of $650 million and $468 million, respectively, which are recorded at estimated fair value based on Level 3 inputs and within Other non-current assets in the Condensed Consolidated Balance Sheets.

Hedging Transactions and Derivative Financial Instruments

Foreign Currency Forward Contracts Designated as Accounting Hedges

The Company enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate risk related to future forecasted transactions denominated in currencies other than the U.S. Dollar. These contracts generally mature within 24 months and are designated as accounting hedges. As of March 29, 2025 and December 28, 2024, the notional value of the Company’s outstanding foreign currency forward contracts designated as cash flow hedges was $2.1 billion and $2.2 billion, respectively. The fair value of these contracts as of March 29, 2025 is recorded within Prepaid expenses and other current assets, Accrued liabilities, and Other long-term liabilities of $7 million, $37 million and $4 million, respectively. The fair value of these contracts as of December 28, 2024 is recorded within Prepaid expenses and other current assets, Accrued liabilities, and Other long-term liabilities of $6 million, $60 million and $11 million, respectively.

Foreign Currency Forward Contracts Not Designated as Accounting Hedges

The Company also enters into foreign currency forward contracts to reduce the short-term effects of foreign currency fluctuations on certain receivables or payables denominated in currencies other than the U.S. Dollar. These forward contracts generally mature within 3 months and are not designated as accounting hedges. As of March 29, 2025 and December 28, 2024, the notional value of these outstanding contracts was $868 million and $642 million, respectively. The fair value of these contracts was not material as of March 29, 2025 and December 28, 2024.

NOTE 9 – Earnings Per Share

The following table sets forth the components of basic and diluted earnings per share:

									Three Months Ended
															March 29, 2025						March 30, 2024
															(In millions, except per share amounts)
Numerator
Net income for basic earnings per share															$	709					$	123
Denominator
Basic weighted average shares															1,620						1,617
Potentially dilutive shares from employee equity plans															6						22
Diluted weighted average shares															1,626						1,639
Earnings per share:
Basic															$	0.44					$	0.08
Diluted															$	0.44					$	0.07

Securities which would have been anti-dilutive are not material and are excluded from the computation of diluted earnings per share for all periods presented.

NOTE 10 – Common Stock and Stock-based Compensation

Common Stock

Shares of common stock outstanding were as follows:

									Three Months Ended
															March 29, 2025						March 30, 2024
															(In millions)
Balance, beginning of period															1,622						1,616
Common stock issued under employee equity plans															1						3
Common stock repurchases for tax withholding on equity awards															—						(1)
Repurchases of common stock															(7)						—
Balance, end of period															1,616						1,618

Stock Repurchase Program

The Company has an approved stock repurchase program authorizing repurchases of up to $12 billion of the Company’s common stock (Repurchase Program). During the three months ended March 29, 2025, the Company repurchased 7 million shares of its common stock under the Repurchase Program for $749 million. As of March 29, 2025, $3.9 billion remained available for future stock repurchases under the Repurchase Program. The Repurchase Program does not obligate the Company to acquire any common stock, has no termination date and may be suspended or discontinued at any time.

Stock-based Compensation

Stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations was as follows:

									Three Months Ended
															March 29, 2025						March 30, 2024
															(In millions)
Cost of sales															$	5					$	6
Research and development															282						279
Marketing, general and administrative															77						86
Total															$	364					$	371

NOTE 11 – Income Taxes

The Company determines its income taxes for interim reporting periods by applying the Company’s estimated annual effective tax rate to the year-to-date results, adjusted for tax items discrete to each period.

For the three months ended March 29, 2025, the Company recorded an income tax provision of $123 million representing an effective tax rate of 14.8%. The difference between the U.S. federal statutory tax rate of 21% and the Company's estimated annual effective tax rate was primarily due to the income tax benefit from foreign-derived intangible income (FDII) and research and development (R&D) tax credits, partially offset by the tax rate detriment from foreign earnings.

For the three months ended March 30, 2024, the Company recorded an income tax benefit of $52 million representing an effective tax rate of (73.2)%. The difference between the U.S. federal statutory tax rate of 21% and the Company's estimated annual effective tax rate was primarily due to the income tax benefit from FDII and R&D tax credits, partially offset by the tax rate detriment from foreign earnings. In addition, the tax benefit reflected discrete income tax benefits of $61 million, primarily related to tax effects of stock-based compensation.

As of both March 29, 2025 and December 28, 2024, the Company had long-term income tax liabilities related to unrecognized tax benefits of $1.4 billion recorded under Other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets.

NOTE 12 – Commitments and Contingencies

Commitments

The Company’s purchase commitments primarily include obligations to purchase wafers and substrates from third parties, and obligations for future payments related to: multi-year cloud service provider, software, technology and IP license agreements. These purchase obligations were made under noncancellable purchase orders and contractual obligations requiring minimum purchases for which cancellation would lead to significant penalties.

Total future unconditional purchase commitments as of March 29, 2025 were as follows:

Fiscal Year			(In millions)
Remainder of 2025			$	5,605
2026			884
2027			651
2028			647
2029			426
2030 and thereafter			35
Total unconditional purchase commitments			$	8,248

On an ongoing basis, the Company works with suppliers and partners on timing of payments and deliveries of purchase commitments, taking into account business conditions.

Contingencies

During the quarterly period ended March 29, 2025, there were no material legal proceedings. The Company is a defendant or plaintiff in various actions that arose in the normal course of business. With respect to these matters, based on management’s current knowledge, the Company believes that the amount or range of reasonably possible loss, if any, will not, either individually or in the aggregate, have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

NOTE 13 – Restructuring Charges

In the fourth quarter of 2024, the Company implemented a restructuring plan (the 2024 Restructuring Plan) which reduced the global workforce by approximately 4% of headcount. Actions associated with the 2024 Restructuring Plan were substantially completed in the first quarter of fiscal year 2025. The 2024 Restructuring Plan charges to date were $186 million, of which $113 million was related to employee severance and benefits and $73 million was related to asset impairment. During the quarter ended March 29, 2025, the Company made $75 million of severance payments and had no charges or adjustments to period expense under the 2024 Restructuring Plan. As of March 29, 2025 and December 28, 2024, restructuring plan liabilities of $14 million and $89 million, respectively, were recorded within Accrued liabilities in the Condensed Consolidated Balance Sheets.

NOTE 14 – Subsequent Events

Acquisition of ZT Systems

On March 31, 2025, the Company completed the acquisition of ZT Group Int’l Inc. (ZT Systems) to help accelerate the end-to-end design and deployment of AMD-powered AI infrastructure at scale for the cloud. At the close of the acquisition, the Company paid $3.375 billion in cash, subject to certain purchase price adjustments, and issued 8,335,849 shares of the Company’s common stock. To the extent certain conditions are met, the Company will pay an additional $300 million in cash and issue up to 740,961 shares of the Company’s common stock. The Company is actively seeking a strategic partner to acquire ZT Systems' manufacturing business.

Export Restrictions

On April 15, 2025, the Company completed its initial assessment of a new license requirement implemented by the U.S. government for the export of certain semiconductor products to China (including Hong Kong and Macau) and D:5 countries, or to companies headquartered or with an ultimate parent in such countries (the Export Control). The Export Control applies to the Company’s MI308 products. The Company expects to apply for licenses but there is no assurance that licenses will be granted. The Company expects that the Export Control may result in charges of approximately $800 million in inventory and related reserves.

Tax Matters

The Company previously submitted claims to the Internal Revenue Service (IRS) seeking reasonable cause relief related to dual consolidated losses. On April 17, 2025, the IRS approved the Company’s request for relief. The relief, as approved, is estimated to favorably impact the Company’s tax provision in fiscal year 2025 by approximately $900 million.