Advanced Micro Devices, Inc.

Revenue is primarily transactional unit sales without subscription or contractual recurrence. FY2023 revenue declined 3.9% in the PC downturn, and embedded revenue fell 3% in FY2025 on customer inventory normalization. The multi-year OpenAI and Meta 6 GW GPU deployment agreements provide some forward visibility but remain contingent on milestone execution.

Three reportable segments span data center compute, client/gaming silicon, and embedded/FPGA. Data Center is the largest at 48% of FY2025 revenue, above the 30% threshold for a cleanly diversified book. End markets are genuinely distinct (hyperscale, consumer PC, gaming consoles, aerospace/industrial FPGA) but move on partially correlated compute cycles.

FY2025 revenue was spread across the United States (33%), China (22%), Taiwan (15%), Singapore (12%), and Japan (7%), with no country above 40% and four regions contributing materially. The geographic footprint held through the FY2022-FY2023 semi downturn and through the 2025 tightening of China export controls that forced a $1.5-1.8B revenue reset.

Fabless model with TSMC manufacturing keeps capex light; non-GAAP gross margin held near 53-54% across FY2024 and FY2025 on record volume. Operating leverage is real but not extreme: ROIC collapsed from 42% in FY2021 to roughly 1% in FY2023 before recovering to ~3% in FY2024, showing the economics bend under cycle pressure.

Revenue is chip-unit sales, discretionary at the client/gaming end and capex-cycle-driven at the data center end. There is no subscription, attach, or service layer; even the OpenAI and Meta gigawatt commitments convert to hardware revenue rather than recurring streams. Embedded (Xilinx) brings longer design-win tails but at 10% of revenue is not enough to reset the mix.