Analysis of Reportable Segments
Advanced Micro Devices Inc. operates in 3 segments: Data Center; Client and Gaming; and Embedded.
Segment Profit Margin
Advanced Micro Devices Inc., profit margin by reportable segment
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Data Center | 21.66% | 27.68% | 19.50% | 30.58% | 26.83% |
| Client and Gaming | 19.62% | 12.30% | 8.52% | 16.48% | 24.19% |
| Embedded | 35.99% | 39.95% | 49.39% | 49.47% | 17.89% |
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
Segment profit margins exhibited varied performance across the observed period. The Data Center segment demonstrated initial growth followed by volatility, while the Client and Gaming segment experienced a significant decline before a partial recovery. The Embedded segment maintained relatively high margins, though with a decreasing trend in later years.
- Data Center
- The Data Center segment’s profit margin increased from 26.83% in 2021 to 30.58% in 2022, indicating improved profitability. However, a substantial decrease to 19.50% occurred in 2023. A recovery to 27.68% was noted in 2024, followed by a slight decline to 21.66% in 2025. This suggests potential cyclicality or sensitivity to market conditions within this segment.
- Client and Gaming
- The Client and Gaming segment experienced a marked decline in profit margin, falling from 24.19% in 2021 to a low of 8.52% in 2023. A partial recovery was observed in 2024, with margins reaching 12.30%, and continued into 2025, increasing to 19.62%. This indicates a potential turnaround in the segment’s performance, though margins remain below those observed in 2021.
- Embedded
- The Embedded segment consistently reported strong profit margins throughout the period. Margins increased significantly from 17.89% in 2021 to 49.47% in 2022 and remained high at 49.39% in 2023. A decreasing trend was then observed, with margins falling to 39.95% in 2024 and further to 35.99% in 2025. While still substantial, this decline warrants monitoring to understand underlying causes.
- Overall Trends
- The period began with generally positive or stable margins across all segments. However, 2023 appears to be a turning point, with significant declines in the Data Center and Client and Gaming segments. While the Client and Gaming segment showed signs of recovery in subsequent years, the Data Center segment’s performance remained volatile, and the Embedded segment experienced a consistent, albeit gradual, decrease in profitability.
Segment Profit Margin: Data Center
Advanced Micro Devices Inc.; Data Center; segment profit margin calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 3,603) | 3,482) | 1,267) | 1,848) | 991) |
| Net revenue | 16,635) | 12,579) | 6,496) | 6,043) | 3,694) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 21.66% | 27.68% | 19.50% | 30.58% | 26.83% |
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × 3,603 ÷ 16,635 = 21.66%
The segment experienced fluctuating performance between 2021 and 2025. Operating income and net revenue both demonstrated overall growth, though with considerable variation year-over-year. The segment profit margin exhibited a similar pattern of volatility.
- Operating Income
- Operating income increased significantly from $991 million in 2021 to $1,848 million in 2022. A subsequent decrease was observed in 2023, with income falling to $1,267 million. A substantial recovery occurred in 2024, reaching $3,482 million, followed by a modest increase to $3,603 million in 2025.
- Net Revenue
- Net revenue mirrored the trend in operating income, growing from $3,694 million in 2021 to $6,043 million in 2022. Revenue continued to increase, albeit at a slower pace, reaching $6,496 million in 2023. A significant surge in revenue occurred in 2024, reaching $12,579 million, and continued to rise to $16,635 million in 2025.
- Segment Profit Margin
- The segment profit margin began at 26.83% in 2021, increasing to 30.58% in 2022, representing the highest margin observed during the period. A notable decline occurred in 2023, with the margin falling to 19.50%. The margin recovered to 27.68% in 2024, but decreased again in 2025 to 21.66%. The profit margin, while generally healthy, demonstrates sensitivity to changes in revenue and operating income.
The correlation between net revenue and operating income suggests a strong relationship between sales volume and profitability. The fluctuations in segment profit margin indicate potential shifts in cost structure or pricing strategies, or a combination of both. The substantial growth in both revenue and operating income between 2024 and 2025, despite a margin decrease, suggests strong demand and potentially increased operating expenses.
Segment Profit Margin: Client and Gaming
Advanced Micro Devices Inc.; Client and Gaming; segment profit margin calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 2,855) | 1,187) | 925) | 2,143) | 3,022) |
| Net revenue | 14,550) | 9,649) | 10,863) | 13,006) | 12,494) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 19.62% | 12.30% | 8.52% | 16.48% | 24.19% |
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × 2,855 ÷ 14,550 = 19.62%
The segment profit margin exhibited considerable fluctuation over the five-year period. Initial values demonstrated a strong profitability position, which subsequently declined before showing signs of recovery.
- Overall Trend
- The segment profit margin began at 24.19% in 2021, decreased to a low of 8.52% in 2023, and then increased to 19.62% in 2025. This indicates a period of margin compression followed by a recovery phase.
- 2021-2022
- A decrease in segment profit margin is observed from 2021 to 2022, moving from 24.19% to 16.48%. This decline occurred alongside an increase in net revenue, suggesting that while sales grew, profitability did not keep pace.
- 2022-2023
- The most significant decline in segment profit margin occurred between 2022 and 2023, falling from 16.48% to 8.52%. This coincided with a decrease in net revenue, indicating a challenging period for both sales and profitability. The operating income also experienced a substantial reduction during this timeframe.
- 2023-2025
- From 2023 to 2025, a recovery in segment profit margin is evident, rising from 8.52% to 19.62%. This improvement was accompanied by an increase in both operating income and net revenue, suggesting successful efforts to restore profitability. The 2025 margin, while improved, remains below the 2021 level.
The relationship between operating income and segment profit margin appears strong. Fluctuations in operating income are mirrored by changes in the segment profit margin, indicating a direct correlation between these two financial metrics.
Segment Profit Margin: Embedded
Advanced Micro Devices Inc.; Embedded; segment profit margin calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 1,243) | 1,421) | 2,628) | 2,252) | 44) |
| Net revenue | 3,454) | 3,557) | 5,321) | 4,552) | 246) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 35.99% | 39.95% | 49.39% | 49.47% | 17.89% |
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × 1,243 ÷ 3,454 = 35.99%
The segment experienced significant fluctuations in operating income and net revenue over the observed period. A substantial increase in both metrics occurred between 2021 and 2022, followed by a peak in 2023, and subsequent declines in 2024 and 2025.
- Operating Income
- Operating income demonstrated a dramatic rise from US$44 million in 2021 to US$2,252 million in 2022, representing a significant improvement in profitability. This growth continued, albeit at a slower pace, reaching US$2,628 million in 2023. However, operating income decreased substantially to US$1,421 million in 2024 and further to US$1,243 million in 2025, indicating a weakening performance in recent years.
- Net Revenue
- Net revenue mirrored the trend in operating income, increasing from US$246 million in 2021 to US$4,552 million in 2022, and peaking at US$5,321 million in 2023. Similar to operating income, net revenue experienced declines in the subsequent two years, falling to US$3,557 million in 2024 and US$3,454 million in 2025.
- Segment Profit Margin
- The segment profit margin exhibited a strong upward trend initially, increasing from 17.89% in 2021 to 49.47% in 2022, and remaining high at 49.39% in 2023. A consistent downward trend was then observed, with the margin decreasing to 39.95% in 2024 and 35.99% in 2025. This suggests that while revenue decreased, the rate of decrease in operating income was greater, leading to margin compression. The high margins in 2022 and 2023 were not sustained, and the segment’s profitability, as measured by this margin, has diminished in the latest two reported periods.
The correlation between operating income, net revenue, and segment profit margin suggests that the segment’s performance is sensitive to broader economic conditions or industry-specific factors. The declines observed in 2024 and 2025 warrant further investigation to determine the underlying causes and potential mitigation strategies.
Net revenue
Advanced Micro Devices Inc., net revenue by reportable segment
US$ in millions
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Data Center | 16,635) | 12,579) | 6,496) | 6,043) | 3,694) |
| Client and Gaming | 14,550) | 9,649) | 10,863) | 13,006) | 12,494) |
| Embedded | 3,454) | 3,557) | 5,321) | 4,552) | 246) |
| Total | 34,639) | 25,785) | 22,680) | 23,601) | 16,434) |
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
Overall net revenue exhibited a fluctuating pattern over the five-year period. Initial growth was followed by a slight decline, then a resurgence, culminating in substantial gains. A segment-by-segment analysis reveals differing performance characteristics contributing to these overall trends.
- Data Center
- The Data Center segment demonstrated consistent and significant growth throughout the observed period. Revenue increased from US$3,694 million in 2021 to US$16,635 million in 2025, representing a substantial increase. The most significant growth occurred between 2022 and 2024, with revenue more than doubling. This segment appears to be a key driver of overall company revenue growth.
- Client and Gaming
- The Client and Gaming segment initially showed modest growth from 2021 to 2022, increasing from US$12,494 million to US$13,006 million. However, revenue then decreased in both 2023 and 2024, falling to US$9,649 million. A recovery is observed in 2025, with revenue rising to US$14,550 million, though it did not reach the 2021 peak. This segment’s performance appears more volatile than that of the Data Center segment.
- Embedded
- The Embedded segment experienced substantial growth from 2021 to 2022, increasing from US$246 million to US$4,552 million. Growth continued to US$5,321 million in 2023, but then declined in both 2024 and 2025, reaching US$3,454 million. While still significantly higher than the 2021 level, the recent trend indicates a potential slowdown or reversal in growth for this segment.
- Total Revenue
- Total revenue increased from US$16,434 million in 2021 to US$23,601 million in 2022, representing a significant year-over-year increase. A slight decrease was observed in 2023, with revenue falling to US$22,680 million. Revenue then increased again in 2024 to US$25,785 million, and experienced substantial growth in 2025, reaching US$34,639 million. The strong performance of the Data Center segment, coupled with the recovery in Client and Gaming in 2025, contributed significantly to the overall revenue growth in the latter years of the period.
The composition of revenue has shifted over the period. While Client and Gaming initially represented the largest portion of revenue, the Data Center segment has become increasingly dominant, contributing a larger share to the total in recent years. The Embedded segment, while growing significantly initially, has shown signs of stabilization or decline in the most recent periods.
Operating income (loss)
Advanced Micro Devices Inc., operating income (loss) by reportable segment
US$ in millions
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Data Center | 3,603) | 3,482) | 1,267) | 1,848) | 991) |
| Client and Gaming | 2,855) | 1,187) | 925) | 2,143) | 3,022) |
| Embedded | 1,243) | 1,421) | 2,628) | 2,252) | 44) |
| All Other | (4,007) | (4,190) | (4,419) | (4,979) | (409) |
| Total | 3,694) | 1,900) | 401) | 1,264) | 3,648) |
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
The operating income performance across reportable segments exhibits significant fluctuations over the five-year period. A notable divergence in trends is observed between the Data Center, Client and Gaming, and Embedded segments, contrasted with the consistently negative performance of the All Other segment.
- Data Center
- The Data Center segment demonstrates a strong upward trend in operating income. Beginning at US$991 million in 2021, it increased to US$1,848 million in 2022. A subsequent decline to US$1,267 million occurred in 2023, followed by substantial growth to US$3,482 million in 2024 and a further increase to US$3,603 million in 2025. This segment appears to be a key driver of overall company performance, particularly in the later years of the observed period.
- Client and Gaming
- The Client and Gaming segment experienced a marked decline in operating income. Starting at US$3,022 million in 2021, it decreased to US$2,143 million in 2022 and continued to fall to US$925 million in 2023. A modest recovery to US$1,187 million occurred in 2024, followed by a more substantial increase to US$2,855 million in 2025. Despite the 2025 recovery, the segment’s performance remains below its 2021 level.
- Embedded
- The Embedded segment shows considerable volatility. Operating income increased significantly from US$44 million in 2021 to US$2,252 million in 2022 and further to US$2,628 million in 2023. However, a substantial decrease to US$1,421 million occurred in 2024, followed by a further decline to US$1,243 million in 2025. This segment’s performance is less predictable than that of the Data Center segment.
- All Other
- The All Other segment consistently reports operating losses throughout the period. Losses remained relatively stable between 2021 and 2024, ranging from US$409 million to US$4,979 million. A slight reduction in the magnitude of the loss is observed in 2025, with a reported loss of US$4,007 million. This segment consistently detracts from overall company profitability.
- Total Operating Income
- Total operating income mirrors the combined trends of the individual segments. A significant decrease is observed from US$3,648 million in 2021 to US$1,264 million in 2022, followed by a substantial decline to US$401 million in 2023. A recovery begins in 2024, with operating income reaching US$1,900 million, and continues into 2025, reaching US$3,694 million. The overall trend suggests a cyclical pattern with a strong recovery in the most recent year.