Advanced Micro Devices, Inc.
Advanced Micro Devices, Inc. operates as a semiconductor company internationally. It operates in three segments: Data Center, Client and Gaming, and Embedded. The company offers artificial intelligence (AI) accelerators, microprocessors, and graphics processing units (GPUs) as standalone devices or as incorporated into accelerated processing units, chipsets, and data center and professional GPUs; and embedded processors and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing units, field programmable gate arrays (FPGA), system on modules, AI network interface cards, and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen AI, AMD Ryzen PRO, AMD Ryzen Threadripper, AMD Ryzen Threadripper PRO, AMD Athlon, and AMD PRO A-Series brands; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; professional graphics under the AMD Radeon Pro graphics brand; and AI and general-purpose compute infrastructure for hyperscale providers. The company offers data center graphics under the AMD Instinct accelerators and Radeon PRO V-series brands; server microprocessors under the AMD EPYC brand; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, and AMD R-Series and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo and Pensando brands. It serves original equipment and design manufacturers, public cloud service providers, system integrators, distributors, and add-in-board manufacturers. The company was incorporated in 1969 and is headquartered in Santa Clara, California.
What does it do?
AMD makes the chips that power computers, gaming consoles, and increasingly, AI systems. When you play on a PlayStation 5, AMD chips are inside. When a company like Meta or Microsoft runs AI models in their data centers, they often use AMD's GPUs — powerful processors that handle massive amounts of calculations simultaneously. Think of AMD as the company building the engines that run the digital world, competing head-to-head with giants like Intel and Nvidia.
AI is the biggest investment theme in markets right now, and chips are the physical backbone of it — you cannot run AI without them. AMD is one of only two companies in the world (the other being Nvidia) that can supply the high-end GPUs that tech giants are desperately buying to build AI infrastructure. That scarcity of supply and explosion in demand makes AMD one of the most watched companies in the entire stock market.
How does it make money?
AMD makes money by selling chips across three main business lines. Its Data Center segment — selling AI accelerators and server processors — is the fastest-growing piece and now drives the bulk of investor excitement, with the MI300X AI chip winning contracts at Microsoft, Meta, and others. The Client and Gaming segment sells processors for PCs and chips for consoles like the PlayStation 5 and Xbox Series X. The Embedded segment sells chips baked into industrial and communications equipment, though this segment has struggled recently. Revenue grew from $25.8B to $34.6B in the latest year, a jump of roughly 34%.
Why do investors care?
The core bet on AMD is simple: demand for AI chips is exploding, and Nvidia cannot supply everyone alone. AMD's MI300X and next-generation MI350 and MI400 chips are credible alternatives that hyperscalers — the Amazons, Googles, and Microsofts of the world — are actively buying to diversify away from a single supplier. For the thesis to work, AMD needs to keep closing the performance gap with Nvidia, win larger and larger data center contracts, and recover its embedded business as industrial customers restart purchasing.
Deep Dive
MemberA full investor briefing on Advanced Micro Devices, Inc. — history, leadership, risks, and outlook.