Advanced Micro Devices Inc. (NASDAQ:AMD)

Gross Profit Margin

The gross profit margin displays a general upward trend starting around March 2021, with values increasing from 44.53% to a peak near 50.09% by June 2025. There are slight fluctuations towards the end, with a minor decline to 47.62% in June 2025. This indicates improving efficiency or favorable cost management in production over the observed periods.

Operating Profit Margin

Operating profit margin reveals a peak at 22.2% around March 2022 before entering a notable downward phase, declining to negative territory at -1.73% by September 2023. Following this low point, the metric recovers gradually back into positive figures, reaching approximately 9.62% by June 2025. This pattern suggests a period of challenges in operating efficiency or increased operating costs, followed by steady recovery efforts.

Net Profit Margin

Net profit margin mirrors the trend found in operating margin, with a high of about 26.72% in December 2021, followed by a decline to slightly negative margin (-0.11%) in September 2023. Post-decline, there is a progressive improvement, finishing at 9.57% in June 2025. This indicates that profitability faced headwinds mid-term but subsequently improved, reflecting operational recovery and potentially better control over expenses or enhanced revenue quality.

Return on Equity (ROE)

Return on equity demonstrates strong performance early with values near 55.62% in December 2021, followed by a sharp fall to close to zero and slightly negative around late 2023. Afterwards, ROE recovers slowly, rising to 4.75% by June 2025. Such volatility may suggest cyclical challenges or financial restructurings impacting shareholder returns, with a recovery phase toward the end of the timeline.

Return on Assets (ROA)

Return on assets trends closely with ROE, peaking at 35.59% in December 2021 and then dropping significantly to slightly negative values in late 2023. Thereafter, it shows gradual improvement, reaching 3.79% by mid-2025. The ROA pattern reflects fluctuating asset utilization efficiency, likely influenced by operational difficulties during the mid-period and gradual enhancement in asset profitability subsequently.

Net Revenue Trend

Net revenue has shown a generally upward trajectory over the analyzed quarterly periods. Starting at $1,786 million in March 2020, revenue increased steadily, peaking at $7,658 million in December 2024 before experiencing some fluctuations. There was a notable rise throughout 2021 and 2022, with revenue growing from approximately $3,850 million at the midpoint of 2021 to over $6,819 million by September 2024. The latest data points indicate some volatility, with revenue slightly declining to $7,438 million in March 2025 but recovering to $7,685 million in June 2025.

Gross Profit Trend

Gross profit has mirrored the growth pattern of net revenue, increasing from $818 million in March 2020 to a peak of $3,882 million in December 2024. This upward movement reflects overall business expansion and improved sales performance. However, following this peak, gross profit showed a decline to $3,059 million by June 2025, suggesting either increased costs or margin pressures in the most recent quarters.

Gross Profit Margin Analysis

Gross profit margin was not available in the early periods but from December 2020 onward, it exhibited a consistent and gradual increase. Beginning at approximately 44.53% in December 2020, the margin improved steadily, reaching over 50% in June 2025. This trend indicates enhanced efficiency or more favorable product mix contributing to higher profitability per sales dollar. The margin peaked at 50.09% in March 2025 but slightly declined to 47.62% by June 2025, potentially reflecting recent cost pressures or pricing adjustments.

Patterns and Insights

The data reflects strong revenue and gross profit growth over the five-year span, underscoring an expanding market presence and improving operational performance. The steadily increasing gross profit margin suggests successful management of production costs and pricing strategies, leading to improved profitability. The slight declines in gross profit and margin in the latest quarters point to emerging challenges that may require attention, such as supply chain issues, increased input costs, or competitive pricing pressures.

Summary

Overall, the financial performance shows positive growth with improving profitability metrics. Despite recent volatility close to mid-2025, the historical trend reveals robust expansion and efficiency improvements. Continued monitoring of margin fluctuations and gross profit declines in recent periods is advisable to ensure sustained financial health.

The financial data reveals several notable trends in operating income, net revenue, and operating profit margin over the observed periods.

Operating Income (Loss)

Operating income demonstrated a general upward trajectory from March 2020 through December 2021, increasing from $177 million to $1,207 million. This marks a substantial improvement in operational profitability during this initial period. However, beginning in March 2022, operating income exhibited significant volatility, with values declining to negative territory in mid-2022 and fluctuating between losses and modest gains through mid-2023. From the latter part of 2023 into early 2025, operating income showed periods of recovery with some highs such as $871 million in December 2024, followed by declines. The pattern suggests episodic operational challenges impacting profitability.

Net Revenue

Net revenue consistently increased from March 2020 through June 2022, moving from $1,786 million to $6,550 million, indicating strong top-line growth over this time. A contraction occurred in the subsequent quarters of 2022 and early 2023, with revenues decreasing slightly. Following this dip, revenue stabilized and then resumed growth through much of 2023 and into 2024, reaching a peak of $7,658 million in March 2025. This overall upward trend reflects expanding sales or business volume despite some short-term setbacks.

Operating Profit Margin

Operating profit margin figures are only available from the third quarter of 2020 onward. Initial margins improved steadily, rising from 14.02% to a peak of 22.20% by December 2021, aligning with the increase in operating income and revenue. After this peak, margins experienced a marked decline in 2022, dropping sharply to 5.36% and falling further into near or slightly negative levels in early 2023. Margins bottomed out around -1.73% but began a gradual recovery trend through 2024, climbing back to 9.62% by June 2025, although remaining below the peak levels of 2021. This suggests margin pressure likely due to increased costs or reduced pricing power during the downturn, with a partial recovery thereafter.

In summary, the financial metrics indicate a period of robust revenue growth and improving operational profitability through 2021, followed by increased volatility and margin compression beginning in 2022. Despite fluctuations in operating income and profit margins, revenue growth remains generally positive over the longer term. The partial margin recovery in 2024 and early 2025 could signal operational adjustments or market improvements contributing to profitability stabilization.

The financial data reveals notable fluctuations and distinct trends in the company's performance over the analyzed quarters.

Net Income (Loss)

The net income shows significant volatility across the periods. There is a pronounced peak in the quarter ending December 26, 2020, with net income reaching 1,781 million USD. Following this high, net income trends downward considerably, hitting a low of -139 million USD in the quarter ending April 1, 2023, indicating a net loss during that period. Subsequently, net income recovers and exhibits a general upward trajectory, with values rising steadily through to the quarter ending June 28, 2025, where it attains 872 million USD. The fluctuations suggest periods of strong profitability interspersed with phases of financial challenge.

Net Revenue

Net revenue demonstrates a general upward trend over the timeframe, increasing from 1,786 million USD in March 2020 to a peak of 7,658 million USD in March 2025. Despite an intermediate dip in the period ending December 31, 2022 to 5,599 million USD, revenue stabilizes and resumes growth in subsequent quarters. This steady increase highlights expanding business operations or improved market positioning contributing to enhanced sales volumes or pricing.

Net Profit Margin

The net profit margin was notably high, ranging from approximately 25% to 26.7% during late 2020 and early 2021, coinciding with the peak net income periods. This margin declines through 2022, dropping sharply to a negative margin of -0.11% in early 2023, aligned with the net loss observed. Following this low, the margin recovers gradually, advancing from near zero to 9.57% by mid-2025. This recovery implies improvements in cost management, pricing, or operational efficiency after a period of reduced profitability.

Overall, the data depicts a company experiencing periods of strong profitability and growth, interrupted by challenges that impacted net income and profit margins temporarily. Despite these fluctuations, the longer-term directional trends in revenue and profitability margins suggest a resilient financial position with a capacity for recovery and growth moving forward.

The financial data reveals notable fluctuations in net income and stockholders’ equity over the evaluated periods, along with a varying return on equity (ROE) that reflects changing profitability relative to equity.

Net Income (Loss)

Net income demonstrates considerable volatility, with an initial figure of 162 million USD in March 2020 followed by a sharp increase in December 2020, peaking at 1,781 million USD. This peak is succeeded by fluctuating values, including a significant decline to 21 million USD by December 2022 and a negative figure of -139 million USD in April 2023, indicating a temporary loss. Subsequently, net income recovers and generally trends upwards, reaching 872 million USD by December 2025. This pattern suggests periods of pronounced profitability interspersed with episodes of stress or operational challenges.

Stockholders’ Equity

Stockholders' equity exhibits a steady upward trajectory from 3,037 million USD in March 2020 to 7,497 million USD at the end of 2021, followed by a remarkable jump to over 55,000 million USD starting in March 2022. This substantial increase might reflect events such as equity issuances, asset revaluations, or significant capital infusions. Thereafter, equity values remain relatively stable, fluctuating slightly but maintaining a range between approximately 54,500 million USD and 59,600 million USD through mid-2025, suggesting a consolidated and stable capital base post-increase.

Return on Equity (ROE)

ROE is not available for the initial quarters but begins at a very high level of 42.66% in December 2020, escalating to 55.62% by the end of 2021. This indicates exceptional profitability relative to equity during this phase. However, from 2022 onward, ROE falls sharply to single-digit figures, dipping as low as -0.05% in April 2023, signaling weak or negative returns in relation to the enlarged equity base. In the subsequent quarters, ROE gradually improves, rising to 4.75% by December 2025. The decline in ROE is consistent with the large increase in equity without proportionate gains in net income initially, with later improvement reflecting recovery or operational stabilization.

Overall, the data indicates a company experiencing rapid changes in profitability and capital structure. The significant expansion in equity alongside fluctuating net income led to high ROE initially, followed by a decline as equity size grew faster than earnings. Late-period improvement in both net income and ROE suggests a return to more balanced financial performance.

The analysis of the quarterly financial data reveals several notable trends in profitability, asset base, and return on assets (ROA) over the examined periods.

Net Income (Loss)

The net income showed significant variability across quarters. Initially, the net income ranged moderately around the low hundreds in millions, followed by a sharp surge to highs above 1.7 billion in late 2020. Subsequently, net income experienced a decline with marked fluctuations, including quarters of very low or negative values in early 2023. From mid-2023 onward, a recovery trend is evident, with net income increasing consistently and reaching levels close to or exceeding previous highs by the end of the data series in mid-2025.

Total Assets

Total assets exhibited a general upward trajectory. There was a steady increase from approximately 5.9 billion in early 2020 to just under 12.5 billion by the end of 2021. A significant step change occurred entering 2022, with total assets expanding dramatically to levels above 66 billion and remaining broadly stable with minor fluctuations through 2023 and 2024. Continuing into 2025, assets showed a slight upward trend, finishing the period around 75 billion. This substantial increase in total assets suggests significant resource accumulation or acquisitions during the early 2020s.

Return on Assets (ROA)

The ROA data, available from late 2020, indicates initially very high returns on assets, peaking above 35% at the end of 2020. However, a pronounced downward trend followed, with ROA descending steadily through 2022 and early 2023, reaching near zero or negative values. Beginning around mid-2023, a gradual recovery commenced, with ROA climbing modestly but consistently throughout 2024 into 2025. The recovery in ROA, while positive, remains well below the peak levels observed in late 2020, reflecting the effects of asset growth and earnings volatility.

In summary, the company's financial performance demonstrated a dynamic net income trajectory with peak profitability in late 2020, a period of subdued earnings through early 2023, and a partial recovery thereafter. The total asset base expanded markedly in early 2022, leading to a dilution effect on ROA, which fell sharply from peak values before a gradual improvement in the most recent quarters. This pattern indicates phases of aggressive growth and investment, followed by an adjustment period and a return to positive operational efficiency.