Advanced Micro Devices Inc. (NASDAQ:AMD)

The financial data reveals multiple trends in revenue, costs, profitability, and expenses over the analyzed quarters. The analysis focuses on the patterns in key financial metrics, highlighting notable fluctuations and overall progression.

Net Revenue

The company's net revenue shows a strong upward trajectory overall, increasing from $1.786 billion in March 2020 to $9.246 billion in September 2025. This growth is not strictly linear, with occasional quarters experiencing slower growth or slight dips, notably in late 2022 and early 2024, but the general trend among 22 quarters is positive and accelerating.

Cost of Sales

The cost of sales has steadily risen alongside revenue, from $968 million in March 2020 to approximately $4.466 billion in September 2025. The inclusion of amortization of acquisition-related intangibles, which increases beginning in late 2021 and stabilizes thereafter, adds complexity to cost trends. Overall, costs have increased but at times at a slower rate than revenues, particularly noticeable in quarters where gross profit margins improve.

Gross Profit

Gross profit mirrors the revenue growth pattern, increasing from $818 million in March 2020 to a peak of $4.780 billion in September 2025. Despite some volatility—such as significant reductions in the last quarters of 2022—the gross profit trend is positive. This indicates improved efficiency or pricing power in periods where gross profit rises faster than cost of sales.

Research and Development (R&D)

R&D expenses grow steadily over the periods, from $442 million in March 2020 to $2.139 billion by September 2025. The continuous increase in R&D investment highlights a sustained focus on innovation and development, with no significant reductions or pauses, indicating long-term strategic prioritization of research activities.

Marketing, General, and Administrative (MG&A) Expenses

MG&A costs similarly demonstrate a consistent upward trend, increasing from $199 million to $1.069 billion across the reported quarters. Despite some minor quarter-on-quarter fluctuations, the general pattern is increased administrative spending, likely associated with scaling operations, marketing efforts, and support functions.

Amortization of Acquisition-Related Intangibles

This line item begins appearing in late 2021 and ranges from approximately $186 million initially up to around $260 million in later periods for cost of sales and down from $616 million to $302 million in MG&A expenses. It represents a fixed but significant cost borne from acquisitions, adding complexity to the cost structure.

Operating Income (Loss)

Operating income presents notable fluctuations, with consistent growth through 2021, peaking in early 2022, then dropping sharply to losses in late 2022 quarters. Recovery begins in 2023 with positive operating results in subsequent quarters. Operating income stabilizes and shows a strong increase by late 2024 and 2025, reaching $1.270 billion in December 2025, demonstrating resilience and operational improvement after periods of pressure.

Interest Expense

Interest expense remains relatively stable, oscillating between $7 million and $38 million, without a clear trend up or down. This stability suggests consistent debt levels or financing costs without major refinancing or borrowing changes.

Other Income (Expense), Net

Other income and expense fluctuate moderately but trend positively, especially in the latter periods with increases reaching nearly $98 million in June 2025. This suggests growing non-operating income contributions, which assist overall profitability.

Income Before Taxes and Equity Income

This metric broadly follows operating income patterns but is impacted by interest and other income/expense volatility. There is a significant jump in late 2020 due to a tax benefit but otherwise sees peaks and troughs corresponding with operating income shifts. The highest values occur in late 2025, reaching $1.315 billion, indicative of strong pre-tax earnings.

Income Tax Provision/Benefit

Income taxes show volatility, including some quarters with tax benefits (notably December 2020 with $1.232 billion), overshadowing normal tax payments. These irregularities likely arise from tax adjustments or credits. Otherwise, tax expenses fluctuate but generally align with profitability trends.

Net Income

Net income rises significantly with a peak of $1.781 billion in December 2020, largely driven by tax benefit effects. Subsequently, net income stabilizes with fluctuations reflecting operating performance and income tax variations. Recent quarters near 2025 show net income achieving strong levels above $1 billion, confirming overall growth and profitability improvements.

In summary, the company exhibits robust revenue growth supported by increased gross profits and steady expense growth in R&D and MG&A. Periods of operational challenges in late 2022 are followed by recovery and significant profitability acceleration toward 2025. While acquisition-related amortizations and tax variations add volatility, the overall trend indicates successful scaling of operations and enhanced financial health over time.