8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

July 30, 2019

Date of Report (Date of earliest event reported)

ADVANCED MICRO DEVICES, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-07882	94-1692300
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

2485 Augustine Drive

Santa Clara, California 95054

(Address of principal executive offices) (Zip Code)

(408) 749-4000

(Registrant’s telephone number, including area code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	AMD	The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02 Results of Operations and Financial Condition.

Item 7.01 Regulation FD Disclosure.

The information in this report furnished pursuant to Items 2.02 and 7.01, including Exhibits 99.1 and 99.2 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or the Securities Act of 1933, as amended, if such subsequent filing specifically references the information furnished pursuant to Items 2.02 and 7.01 of this report.

On July 30, 2019, the Company announced its financial position and results of operations as of and for its second quarter 2019 in a press release that is attached hereto as Exhibit 99.1. Attached hereto as Exhibit 99.2 is a presentation regarding the Company's second quarter 2019.

The Company will hold a conference call on July 30, 2019 at 2:30 p.m. PT (5:30 p.m. ET) to discuss its second quarter 2019 financial results and forward-looking financial guidance.

To supplement the Company’s financial results presented on a U.S. Generally Accepted Accounting Principles (“GAAP”) basis, the Company’s earnings press release contains non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP earnings (loss) per share, Adjusted EBITDA and free cash flow. The Company believes that the supplemental non-GAAP financial measures assist investors in comparing the Company's core performance by excluding items that it believes are not indicative of the Company’s underlying operating performance. The Company cautions investors to carefully evaluate the financial results calculated in accordance with GAAP and the supplemental non-GAAP financial measures and reconciliations. The Company’s non-GAAP financial measures are not intended to be considered in isolation and are not a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

EXHIBIT INDEX
Exhibit No.	Description
99.1	Press Release dated July 30, 2019
99.2	Second Quarter 2019 Financial Results Presentation

SIGNATURE

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 30, 2019	ADVANCED MICRO DEVICES, INC.
	By:	/s/ Devinder Kumar
	Name:	Devinder Kumar
	Title:	Senior Vice President, Chief Financial Officer & Treasurer

EX-99.1

NEWS RELEASE

Media Contact:

Drew Prairie

AMD Communications

512-602-4425

drew.prairie@amd.com

Investor Contact:

Laura Graves

AMD Investor Relations

408-749-5467

laura.graves@amd.com

AMD Reports Second Quarter 2019 Financial Results

- Revenue grew 20 percent quarter-over-quarter;

Gross margin expanded to 41 percent, up 4 percentage points year-over-year -

SANTA CLARA, Calif. - July 30, 2019 - AMD(NASDAQ:AMD) today announced revenue for the second quarter of 2019 of $1.53 billion, operating income of $59 million, net income of $35 million and diluted earnings per share of $0.03. On a non-GAAP^(*) basis, operating income was $111 million, net income was $92 million and diluted earnings per share was $0.08.

GAAP Quarterly Financial Results

	Q2 2019	Q2 2018	Y/Y	Q1 2019	Q/Q
Revenue ($B)	$1.53	$1.76	Down 13%	$1.27	Up 20%
Gross margin	41%	37%	Up 4 pp	41%	Flat
Operating expense ($M)	$562	$499	Up $63	$543	Up $19
Operating income ($M)	$59	$153	Down $94	$38	Up $21
Net income ($M)	$35	$116	Down $81	$16	Up $19
Earnings per share	$0.03	$0.11	Down $0.08	$0.01	Up $0.02

Non-GAAP(*) Quarterly Financial Results

	Q2 2019	Q2 2018	Y/Y	Q1 2019	Q/Q
Revenue ($B)	$1.53	$1.76	Down 13%	$1.27	Up 20%
Gross margin	41%	37%	Up 4 pp	41%	Flat
Operating expense ($M)	$512	$467	Up $45	$498	Up $14
Operating income ($M)	$111	$186	Down $75	$84	Up $27
Net income ($M)	$92	$156	Down $64	$62	Up $30
Earnings per share	$0.08	$0.14	Down $0.06	$0.06	Up $0.02

“I am pleased with our financial performance and execution in the quarter as we ramped production of three leadership 7nm product families,” said Dr. Lisa Su, AMD president and CEO.  “We have reached a significant inflection point for the company as our new Ryzen, Radeon and EPYC processors form the most competitive product portfolio in our history and are well positioned to drive significant growth in the second half of the year.”

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Q2 2019 Results

• Revenue was $1.53 billion, down 13 percent year-over-year due to lower revenue in both segments. Revenue was up 20 percent quarter-over-quarter due to higher revenue in both segments.

• Gross margin was 41 percent, up 4 percentage points year-over-year, primarily driven by increased Ryzen^TM and EPYC^TM processor sales. Gross margin was flat quarter-over-quarter.

• Operating income was $59 million compared to $153 million a year ago and $38 million in the prior quarter. Non-GAAP operating income was $111 million compared to $186 million a year ago and $84 million in the prior quarter. The year-over-year decline was primarily due to lower revenue and higher operating expenses.

• Net income was $35 million compared to $116 million a year ago and $16 million in the prior quarter. Non-GAAP net income was $92 million compared to $156 million a year ago and $62 million in the prior quarter.

• Diluted earnings per share was $0.03, compared to $0.11 a year ago and $0.01 in the prior quarter. Non-GAAP diluted earnings per share was $0.08, compared to $0.14 a year ago and $0.06 in the prior quarter.

• Cash, cash equivalents and marketable securities were $1.1 billion at the end of the quarter.

Quarterly Financial Segment Summary

• Computing and Graphics segment revenue was $940 million, down 13 percent year-over-year and up 13 percent quarter-over-quarter. Revenue was lower year-over-year primarily due to lower graphics channel sales, partially offset by increased client processor and datacenter GPU sales. The quarter-over-quarter increase was primarily due to higher GPU sales.

• Client processor average selling price (ASP) was up year-over-year driven by Ryzen processor sales. Client processor ASP was down quarter-over-quarter due to a higher mix of mobile processor sales.

• GPU ASP increased year-over-year primarily driven by datacenter GPU sales. GPU ASP was down slightly quarter-over-quarter due to lower datacenter GPU sales and higher graphics channel sales.

• Operating income was $22 million, compared to $117 million a year ago and $16 million in the prior quarter. The year-over-year decrease was primarily due to lower revenue. The quarter-over-quarter increase was due to higher GPU sales.

• Enterprise, Embedded and Semi-Custom segment revenue was $591 million, down 12 percent year-over-year and up 34 percent sequentially. The year-over-year revenue decrease was primarily due to lower semi-custom product revenue, partially offset by higher EPYC processor sales. The quarter-over-quarter increase was driven by higher semi-custom and EPYC processor revenue.

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• Operating income was $89 million, compared to $69 million a year ago and $68 million in the prior quarter. The year-over-year and quarter-over-quarter increases were primarily driven by higher EPYC processor sales.

• All Other operating loss was $52 million compared to $33 million a year ago and $46 million in the prior quarter.

Q2 2019 PR Highlights

• AMD launched its highly anticipated client and graphics processors based on advanced new architectures and leading-edge 7nm process technology.

◦ The “Zen 2” CPU core delivers up to an estimated 15 percent instructions per clock (IPC) uplift over the “Zen” architecture, outperforming the historical generational performance improvement industry trend.

◦ AMD Ryzen Desktop Processors are available now with up to 12 cores and 24 threads based on the new “Zen 2” core architecture to deliver leadership performance for gamers, creators and everyday PC users.

▪ AMD unveiled the new X570 chipset for AMD Socket AM4, enabling the world’s first PCIe® 4.0 ready platform for consumers. Motherboard manufacturers are expected to introduce more than 50 models using the new AMD X570 chipset by year end, creating the widest selection of motherboards at launch in AMD history.

◦ AMD introduced RDNA, a new foundational gaming architecture designed to drive the future of PC, console and cloud gaming. RDNA provides up to 1.25X higher performance-per-clock and up to 1.5X higher performance-per-watt compared to AMD’s previous generation Graphics Core Next architecture.

◦ AMD Radeon™ RX 5700 series graphics cards, built on the new AMD RDNA gaming architecture, deliver superior visual fidelity, performance and advanced features for the latest AAA and eSports titles at their respective price points.

• AMD announced that it is working with Cray, the U.S. Department of Energy and Oak Ridge National Laboratory to build what is expected to be the world’s fastest supercomputer - Frontier. Based on future-generation high performance custom AMD EPYC CPUs and Radeon Instinct GPUs optimized for artificial intelligence (AI), Frontier is expected to deliver greater than 1.5 exaflops of processing performance.

• 2^nd Gen EPYC processors are advancing the use of AI across diverse research fields on Indiana University’s Cray Shasta™ supercomputer.

• Microsoft announced that AMD will power its upcoming next generation game console, codenamed Project Scarlett, with a custom, high performance SoC combining the AMD Ryzen “Zen 2” CPU core

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and a next generation GPU based on the Radeon RDNA gaming architecture including hardware-accelerated ray tracing.

• Samsung and AMD announced a multi-year strategic partnership through which Samsung will license AMD graphics IP to advance graphics technologies and solutions for mobile applications including smartphones.

• Apple announced an all-new Mac Pro featuring AMD Radeon Pro Vega II GPUs that deliver exceptional computational performance by harnessing the power of the 7nm process technology, “Vega” graphics architecture and AMD Infinity Fabric™ Link GPU interconnect technology.

• Acer announced the upcoming availability of the new Acer Nitro 5 and Swift 3 laptops, based on 2^nd Gen AMD Ryzen Mobile processors, adding to the more than 40 new consumer and commercial notebooks based on the latest Ryzen Mobile and Ryzen Mobile PRO processors launched this year from all leading global OEMs.

Current Outlook

AMD’s outlook statements are based on current expectations. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.

For the third quarter of 2019, AMD expects revenue to be approximately $1.8 billion, plus or minus $50 million, an increase of approximately 18 percent sequentially and approximately 9 percent year-over-year. The sequential and year-over-year increases are expected to be driven by Ryzen, EPYC and Radeon product sales. AMD expects non-GAAP gross margin to be approximately 43 percent in the third quarter of 2019.

For full year 2019, AMD now expects revenue to increase a mid-single digit percent over 2018 driven by significant sales growth of our new Ryzen, EPYC and Radeon processors, partially offset by lower than expected semi-custom revenue. Revenue excluding semi-custom is expected to grow approximately 20 percent year over year. AMD expects non-GAAP gross margin to be approximately 42 percent for 2019.

AMD Teleconference

AMD will hold a conference call for the financial community at 2:30 p.m. PT (5:30 p.m. ET) today to discuss its second quarter 2019 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com. The webcast will be available for 12 months after the conference call.

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RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)	Three Months Ended
	June 29, 2019			March 30, 2019			June 30, 2018
GAAP gross margin	$	621		$	521		$	652
GAAP gross margin %	41		%	41		%	37		%
Stock-based compensation	2			1			1
Non-GAAP gross margin	623			522			653
Non-GAAP gross margin %	41		%	41		%	37		%
GAAP operating expenses	$	562		$	543		$	499
Stock-based compensation	43			40			32
Loss contingency on legal matter	7			5			—
Non-GAAP operating expenses	$	512		$	498		$	467
GAAP operating income	$	59		$	38		$	153
Stock-based compensation	45			41			33
Loss contingency on legal matter	7			5			—
Non-GAAP operating income	111			84			186

	Three Months Ended
	June 29, 2019					March 30, 2019						June 30, 2018
GAAP net income / earnings per share (1)	$	35		0.03		$	16		0.01			$	116	0.11
Loss on debt redemption	—			—		8			0.01			—		—
Non-cash interest expense related to convertible debt	6			—		6			0.01			6		—
Stock-based compensation	45			0.04		41			0.04			33		0.03
Equity loss in investee	—			—		1			—			1		—
Loss contingency on legal matter	7			0.01		5			—			—		—
Provision (benefit) for income taxes (2)	(1		)	—		(15		)	(0.01		)	—		—
Non-GAAP net income / earnings per share (3)	$	92		$	0.08	$	62		$	0.06		$	156	$	0.14
Shares used and net income adjustment in earnings per share calculation
Shares used in per share calculation (GAAP)	1,109					1,094						1,147
Interest expense add-back to GAAP net income	$	—				$	—					$	11
Shares used in per share calculation (Non-GAAP)	1,210					1,195						1,147
Interest expense add-back to Non-GAAP net income	$	5				$	5					$	5
(1) For three months ended June 30, 2018, GAAP diluted EPS calculation includes the 100.6 million shares related to the Company’s 2026 Convertible Notes and the associated $11 million interest expense add-back to net income under the "if converted" method.
(2) The adjustment in the three months ended March 30, 2019 represents a reduction of US taxes due to the completion of certain internal tax structuring. The associated tax benefit on a Non-GAAP basis is being recognized throughout 2019.
(3) For all three periods, Non-GAAP diluted EPS calculation includes the 100.6 million shares related to the Company’s 2026 Convertible Notes and the associated $5 million interest expense add-back to net income under the "if converted" method.

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About AMD

For 50 years, AMD has driven innovation in high-performance computing, graphics and visualization technologies - the building blocks for gaming, immersive platforms and the datacenter. Hundreds of millions of consumers, leading Fortune 500 businesses and cutting-edge scientific research facilities around the world rely on AMD technology daily to improve how they live, work and play. AMD employees around the world are focused on building great products that push the boundaries of what is possible. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, Facebook and Twitterpages.

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Cautionary Statement

This document contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as AMD's ability to drive significant growth in the second half of 2019; the features, functionality, performance, availability, timing and expected benefits of AMD products; the expected availability of motherboard models using AMD's X570 chipset for AMD Socket AMD4, the features, functionality and expectations of custom EPYC™ CPUs and Radeon™ Instinct GPUs based exascale system named Frontier; and AMD’s expected third quarter of 2019 and fiscal 2019 financial outlook, including revenue, as well as the expected drivers of such revenue, and non-GAAP gross margin, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; the ability of GLOBALFOUNDRIES Inc. to satisfy AMD’s manufacturing requirements; the ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; the ability of third party manufacturers to achieve expected manufacturing yields for AMD’s products; AMD's ability to introduce products on a timely basis with features and performance levels that provide value to its customers while supporting and coinciding with significant industry transitions; AMD's ability to generate sufficient revenue and operating cash flow or obtain external financing that may adversely impact planned investments in research and development or other strategic investments; the loss of a significant customer; AMD's ability to generate revenue from its semi-custom SoC products; global economic uncertainty may adversely impact AMD’s business and operating results; potential security vulnerabilities that could have a material adverse effect on AMD; potential IT outages, data loss, data breaches and cyber-attacks; AMD's ability to generate sufficient cash to service its debt obligations or meet its working capital requirements; AMD's large amount of indebtedness could adversely affect its financial position and prevent it from implementing its strategy or fulfilling its contractual obligations; the restrictions imposed by agreements governing AMD’s notes and the secured credit facility; the competitive markets in which AMD’s products are sold; AMD’s worldwide operations are subject to political, legal and economic risks and natural disasters; the potential dilutive effect if the 2.125% Convertible Senior Notes due 2026 are converted; uncertainties involving the ordering and shipment of AMD’s products; the market conditions of the industries in which AMD products are sold; AMD’s reliance on third-party intellectual property to design and introduce new products in a timely manner; AMD's reliance on third-party companies for the design, manufacture and supply of motherboards, software and other computer platform components; AMD's reliance on Microsoft Corporation and other software vendors' support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board (AIB) partners; future impairments of goodwill and technology license purchases; AMD’s ability to attract and retain qualified personnel; AMD's ability to repurchase its outstanding debt in the event of a change of control; the cyclical nature of the semiconductor industry; future acquisitions, divestitures and/or joint ventures could adversely affect AMD's business; modification or interruption of AMD’s internal business processes and information systems may disrupt its business, processes and internal controls; the availability of essential equipment, materials or manufacturing processes; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; the efficiency of AMD's supply chain as it responds to changes in customer demand for its products; AMD's ability to rely on third party supply-chain logistics functions; AMD’s stock price volatility; worldwide political conditions may adversely affect demand for AMD’s products; unfavorable currency exchange rate fluctuations could adversely affect AMD; AMD’s ability to effectively control the sales of its products on the gray market; AMD's ability to adequately protect its technology or other intellectual property in the United States and abroad; current and future claims and litigation; and environmental laws, conflict minerals-related provisions and other laws or regulations that could result in additional costs and liabilities. Investors are urged to review in detail the risks and uncertainties in AMD's Securities and Exchange Commission filings, including but not limited to AMD's Quarterly Report on Form 10-Q for the quarter ended March 30, 2019.

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* In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross margin, non-GAAP operating expense, non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share. These non-GAAP financial measures reflect certain adjustments as presented in the tables in this earnings press release. AMD has also provided adjusted EBITDA and free cash flow as supplemental non-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. Refer to the data tables at the end of this earnings press release.

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AMD, the AMD Arrow logo, EPYC, Radeon, Ryzen, Athlon and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owner.

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ADVANCED MICRO DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Millions except per share amounts and percentages)

	Three Months Ended									Six Months Ended
	June 29, 2019			March 30, 2019			June 30, 2018			June 29, 2019			June 30, 2018
Net revenue	$	1,531		$	1,272		$	1,756		$	2,803		$	3,403
Cost of sales	910			751			1,104			1,661			2,154
Gross margin	621			521			652			1,142			1,249
Gross margin %	41		%	41		%	37		%	41		%	37		%
Research and development	373			373			357			746			700
Marketing, general and administrative	189			170			142			359			276
Licensing gain	—			(60		)	—			(60		)	—
Operating income	59			38			153			97			273
Interest expense	(25		)	(27		)	(31		)	(52		)	(62		)
Other income (expense), net	3			(7		)	1			(4		)	2
Income before income taxes and equity loss	37			4			123			41			213
Provision (benefit) for income taxes	2			(13		)	6			(11		)	14
Equity loss in investee	—			(1		)	(1		)	(1		)	(2		)
Net Income	$	35		$	16		$	116		$	51		$	197
Earnings per share
Basic	$	0.03		$	0.01		$	0.12		$	0.05		$	0.20
Diluted	$	0.03		$	0.01		$	0.11		$	0.05		$	0.19
Shares used in per share calculation
Basic	1,084			1,044			972			1,064			970
Diluted	1,109			1,094			1,147			1,102			1,043

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ADVANCED MICRO DEVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Millions)

	June 29, 2019 (1) (2)			December 29, 2018 (2)
Assets
Current assets:
Cash and cash equivalents	$	963		$	1,078
Marketable securities	165			78
Accounts receivable, net	1,333			1,235
Inventories, net	1,015			845
Prepayment and receivables - related parties	30			34
Prepaid expenses and other current assets	248			270
Total current assets	3,754			3,540
Property and equipment, net	458			348
Operating lease right-of use assets	212			—
Goodwill	289			289
Investment: equity method	58			58
Other assets	331			321
Total Assets	$	5,102		$	4,556
Liabilities and Stockholders' Equity
Current liabilities:
Short-term debt, net	$	—		$	136
Accounts payable	828			834
Payables to related parties	201			207
Accrued liabilities	727			783
Other current liabilities	48			24
Total current liabilities	1,804			1,984
Long-term debt, net	1,031			1,114
Long-term operating lease liabilities	211			—
Other long-term liabilities	155			192
Stockholders' equity:
Capital stock:
Common stock, par value	11			10
Additional paid-in capital	9,325			8,750
Treasury stock, at cost	(50		)	(50		)
Accumulated deficit	(7,385		)	(7,436		)
Accumulated other comprehensive loss	—			(8		)
Total Stockholders' equity	1,901			1,266
Total Liabilities and Stockholders' Equity	$	5,102		$	4,556
(1) During the first quarter of 2019, the Company adopted the new lease accounting standard, ASC 842, Leases, which resulted     in an increase to assets and liabilities for leases primarily related to office buildings. The adoption of this standard had no     impact to the Company's results of operations or statement of cash flows.
(2) During the second quarter of 2019, GLOBALFOUNDRIES Inc. (GF) ceased being a related party of the Company. All     prior period GF related party balances have been reclassified to conform to the current period presentation.

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ADVANCED MICRO DEVICES, INC.

SELECTED CASH FLOW INFORMATION

(Millions)

	Three Months Ended			Six Months Ended
	June 29, 2019			June 29, 2019
Net cash provided by (used in)
Operating activities	$	30		$	(183	)
Investing activities	$	(7	)	$	(180	)
Financing activities	$	(38	)	$	248

SELECTED CORPORATE DATA

(Millions)

	Three Months Ended									Six Months Ended
	June 29, 2019			March 30, 2019			June 30, 2018			June 29, 2019			June 30, 2018
Segment and Category Information
Computing and Graphics (1)
Net revenue	$	940		$	831		$	1,086		$	1,771		$	2,201
Operating income	$	22		$	16		$	117		$	38		$	255
Enterprise, Embedded and Semi-Custom (2)
Net revenue	$	591		$	441		$	670		$	1,032		$	1,202
Operating income	$	89		$	68		$	69		$	157		$	83
All Other (3)
Net revenue	$	—		$	—		$	—		$	—		$	—
Operating loss	$	(52	)	$	(46	)	$	(33	)	$	(98	)	$	(65	)
Total
Net revenue	$	1,531		$	1,272		$	1,756		$	2,803		$	3,403
Operating income	$	59		$	38		$	153		$	97		$	273
Other Data
Capital expenditures	$	58		$	62		$	43		$	120		$	89
Adjusted EBITDA (4)	$	163		$	130		$	228		$	293		$	424
Cash, cash equivalents and marketable securities	$	1,128		$	1,194		$	983		$	1,128		$	983
Free cash flow (5)	$	(28	)	$	(275	)	$	(99	)	$	(303	)	$	(252	)
Total assets	$	5,102		$	4,931		$	4,103		$	5,102		$	4,103
Total debt	$	1,031		$	1,094		$	1,393		$	1,031		$	1,393

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(1)	The Computing and Graphics segment primarily includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services. The Company also licenses portions of its intellectual property portfolio.
(2)	The Enterprise, Embedded and Semi-Custom segment primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services and technology for game consoles. The Company also licenses portions of its intellectual property portfolio.
(3)	All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments. Also included in this category is stock-based compensation expense.
(4)	Reconciliation of GAAP Operating Income to Adjusted EBITDA*

	Three Months Ended						Six Months Ended
	June 29, 2019		March 30, 2019		June 30, 2018		June 29, 2019		June 30, 2018
GAAP operating income	$	59	$	38	$	153	$	97	$	273
Stock-based compensation	45		41		33		86		65
Depreciation and amortization	52		46		42		98		86
Loss contingency on legal matter	7		5		—		12		—
Adjusted EBITDA	$	163	$	130	$	228	$	293	$	424

⁽⁵⁾  Free Cash Flow Reconciliation**

	Three Months Ended									Six Months Ended
	June 29, 2019			March 30, 2019			June 30, 2018			June 29, 2019			June 30, 2018
GAAP net cash provided by (used in) operating activities	$	30		$	(213	)	$	(56	)	$	(183	)	$	(163	)
Purchases of property and equipment	(58		)	(62		)	(43		)	(120		)	(89		)
Free cash flow	$	(28	)	$	(275	)	$	(99	)	$	(303	)	$	(252	)

*	The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP operating income for stock-based compensation and depreciation and amortization expense. In addition, the Company also included a loss contingency on legal matter in the three and six months ended June 29, 2019 and the three months ended March 30, 2019. The Company calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of operating income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest income and expense and income taxes that can affect cash flows.
**	The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by (used in) operating activities for capital expenditures. The Company calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities. All periods presented conform to the current period presentation.
	The Company has provided reconciliations within the earnings press release of these Non-GAAP financial measures to the most directly comparable GAAP financial measures.

12

EX-99.2

SECOND QUARTER 2019 FINANCIAL RESULTS JULY 30, 2019 1 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

CAUTIONARY STATEMENT This presentation contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as AMD’s strategy and focus; the features, functionality, performance, availability, timing and expected benefits of AMD products; AMD’s ability to achieve its long-term financial model; AMD’s financial outlook for the third quarter of 2019 and fiscal 2019, including, revenue, non-GAAP gross margin, licensing gain, non-GAAP operating expenses, non-GAAP operating expenses as a percentage of revenue, non-GAAP interest expense, taxes and other, taxes, free cash flow and diluted share count, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; the ability of GLOBALFOUNDRIES Inc. to satisfy AMD’s manufacturing requirements; the ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; the ability of third party manufacturers to achieve expected manufacturing yields for AMD’s products; AMD's ability to introduce products on a timely basis with features and performance levels that provide value to its customers while supporting and coinciding with significant industry transitions; AMD's ability to generate sufficient revenue and operating cash flow or obtain external financing that may adversely impact planned investments in research and development or other strategic investments; the loss of a significant customer; AMD's ability to generate revenue from its semi-custom SoC products; global economic uncertainty may adversely impact AMD’s business and operating results; potential security vulnerabilities that could have a material adverse effect on AMD; potential IT outages, data loss, data breaches and cyber-attacks; AMD's ability to generate sufficient cash to service its debt obligations or meet its working capital requirements; AMD's large amount of indebtedness could adversely affect its financial position and prevent it from implementing its strategy or fulfilling its contractual obligations; the restrictions imposed by agreements governing AMD’s notes and the secured credit facility; the competitive markets in which AMD’s products are sold; AMD’s worldwide operations are subject to political, legal and economic risks and natural disasters; the potential dilutive effect if the 2.125% Convertible Senior Notes due 2026 are converted; uncertainties involving the ordering and shipment of AMD’s products; the market conditions of the industries in which AMD products are sold; AMD’s reliance on third-party intellectual property to design and introduce new products in a timely manner; AMD's reliance on third-party companies for the design, manufacture and supply of motherboards, software and other computer platform components; AMD's reliance on Microsoft Corporation and other software vendors' support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board (AIB) partners; future impairments of goodwill and technology license purchases; AMD’s ability to attract and retain qualified personnel; AMD's ability to repurchase its outstanding debt in the event of a change of control; the cyclical nature of the semiconductor industry; future acquisitions, divestitures and/or joint ventures could adversely affect AMD's business; modification or interruption of AMD’s internal business processes and information systems may disrupt its business, processes and internal controls; the availability of essential equipment, materials or manufacturing processes; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; the efficiency of AMD's supply chain as it responds to changes in customer demand for its products; AMD's ability to rely on third party supply-chain logistics functions; AMD’s stock price volatility; worldwide political conditions may adversely affect demand for AMD’s products; unfavorable currency exchange rate fluctuations could adversely affect AMD; AMD’s ability to effectively control the sales of its products on the gray market; AMD's ability to adequately protect its technology or other intellectual property in the United States and abroad; current and future claims and litigation; and environmental laws, conflict minerals-related provisions and other laws or regulations that could result in additional costs and liabilities. Investors are urged to review in detail the risks and uncertainties in AMD's Securities and Exchange Commission filings, including but not limited to AMD's Quarterly Report on Form 10-Q for the quarter ended March 30, 2019. NON-GAAP FINANCIAL MEASURES In this presentation, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income (loss), non-GAAP earnings (loss) per share, free cash flow, and Adjusted EBITDA. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables at the end of AMD’s earnings press release. The non-GAAP financial measures disclosed in this presentation should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the Appendices at the end of this presentation. 2 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

OUR JOURNEY HIGH-PERFORMANCE GREAT AMBITIOUS FOCUSED TECHNOLOGIES PRODUCTS GOALS EXECUTION 3 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

OUR STRATEGY AND FOCUS GRAPHICS COMPUTE SOLUTIONS Gaming Compute Virtual & Client Infrastructure Semi- Vertical Partnerships & AI Augmented Systems & Cloud Custom Platforms Reality 4 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

FINANCIAL SUMMARY Q2 2019(1) ▪ Revenue of $1.53 billion, in-line with our expectations ▪ Down 13% y/y due to lower revenue in both segments ▪ Up 20% q/q due to higher revenue in both segments ▪ Gross margin of 41% ▪ Up 4 percentage points y/y primarily driven by the ramp of RyzenTM and EPYCTM processor sales ▪ Flat q/q ▪ Operating income of $59 million; Non-GAAP operating income of $111 million ▪ Net Income of $35 million; Non-GAAP net income of $92 million ▪ Diluted EPS of $0.03; Non-GAAP diluted EPS of $0.08 ▪ Cash, cash equivalents and marketable securities of $1.1 billion ▪ Reduced $392 million of principal debt y/y(2) 1. See Appendices for GAAP to Non-GAAP reconciliation. 2. See Appendices for Total Debt reconciliation. 5 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

COMPUTING AND GRAPHICS SEGMENT Q2 2019 ▪ Revenue of $940 million ▪ Down 13% y/y primarily due to lower graphics channel sales, partially offset by increased client processor and datacenter GPU sales ▪ Up 13% q/q primarily due to higher GPU sales ▪ Average Selling Price (ASP) ▪ Client processor ASP up y/y driven by Ryzen processor sales ▪ Client processor ASP down q/q due to a higher percentage of mobile processor sales ▪ GPU ASP up y/y primarily driven by datacenter GPU sales ▪ GPU ASP down slightly q/q due to lower datacenter GPU sales and higher graphics channel sales ▪ Operating income of $22 million ▪ Down $95 million y/y due to lower revenue ▪ Up $6 million q/q due to higher GPU sales ▪ Strategic wins and announcements ▪ Launched 3rd Gen Ryzen desktop processors with leadership performance for single and multi-threaded applications ▪ Introduced AMD RadeonTM RX 5700 series graphics cards with RDNA graphics architecture 6 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

ENTERPRISE, EMBEDDED AND SEMI-CUSTOM SEGMENT Q2 2019 ▪ Revenue of $591 million ▪ Down 12% y/y primarily due to lower semi-custom product revenue, partially offset by higher EPYC processor sales ▪ Up 34% q/q driven by higher semi-custom and EPYC processor revenue ▪ Operating income of $89 million ▪ Up $20 million y/y and up $21 million q/q primarily driven by higher EPYC processor sales ▪ Strategic wins and announcements ▪ The U.S. Department of Energy and Oak Ridge National Laboratory announced AMD and Cray, Inc. will build what is expected to be the world’s fastest supercomputer – the “Frontier” supercomputer ▪ Microsoft selected AMD to power its upcoming next generation game console with a custom SoC featuring AMD’s Ryzen “Zen 2” CPU core and “Navi” GPU based on the next generation Radeon™ RDNA gaming architecture 7 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

REVENUE TREND ($ IN MILLIONS) $1,756 $1,647 $1,653 +20% q/q $1,584 $1,531 $1,419 $1,340 $1,272 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Revenue grew 20% q/q due to higher revenue in both segments 8 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

GROSS MARGIN(1) TREND (AS A PERCENTAGE OF REVENUE, GAAP AND NON-GAAP)(2) +4pp y/y 41% Non-GAAP 40% 41% 41% 38% 36% 36% 37% 34% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Continued y/y gross margin expansion each quarter 1. Gross margin for both GAAP and Non-GAAP are the same for all periods except as indicated for Q4 2018. 2. See Appendices for GAAP to Non-GAAP reconciliation. 9 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

EARNINGS PER SHARE TREND (GAAP) $0.11 $0.08 $0.09 +$0.02 q/q $0.06 $0.04 $0.01 $0.03 $(0.02) Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 10 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

EARNINGS PER SHARE TREND (NON-GAAP)(1) $0.14 $0.13 $0.11 +$0.02 q/q $0.09 $0.08 $0.08 $0.06 $0.01 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 1. See Appendices for GAAP to Non-GAAP reconciliation. 11 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

Q2 2019 SUMMARY P&L – GAAP Q2 2019 Q2 2018 Y/Y Q1 2019 Q/Q Revenue $1,531M $1,756M Down 13% $1,272M Up 20% Gross Margin $621M $652M Down $31M $521M Up $100M Gross Margin % 41% 37% Up 4pp 41% Flat Operating Expenses $562M $499M Up $63M $543M Up $19M Operating Expense/Revenue % 37% 28% Up 9pp 43% Down 6pp Operating Income $59M $153M Down $94M $38M Up $21M Net Income $35M $116M Down $81M $16M Up $19M (1) Earnings Per Share $0.03 $0.11 Down $0.08 $0.01 Up $0.02 Gross margin up 4 percentage points y/y primarily driven by Ryzen and EPYC processor sales 1. See Appendices for share count reference. 12 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

Q2 2019 SUMMARY P&L – NON-GAAP(1) Q2 2019 Q2 2018 Y/Y Q1 2019 Q/Q Revenue $1,531M $1,756M Down 13% $1,272M Up 20% Gross Margin $623M $653M Down $30M $522M Up $101M Gross Margin % 41% 37% Up 4pp 41% Flat Operating Expenses $512M $467M Up $45M $498M Up $14M Operating Expense/Revenue % 33% 27% Up 6pp 39% Down 6pp Operating Income $111M $186M Down $75M $84M Up $27M Net Income $92M $156M Down $64M $62M Up $30M (1) Earnings Per Share $0.08 $0.14 Down $0.06 $0.06 Up $0.02 Gross margin up 4 percentage points y/y primarily driven by Ryzen and EPYC processor sales 1. See Appendices for GAAP to Non-GAAP reconciliation and references for share count. 13 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

Q2 2019 SEGMENT RESULTS Q2 2019 Q2 2018 Y/Y Q1 2019 Q/Q Computing and Graphics Net Revenue $940M $1,086M Down 13% $831M Up 13% Operating Income $22M $117M Down $95M $16M Up $6M Enterprise, Embedded and Semi- Custom Net Revenue $591M $670M Down 12% $441M Up 34% Operating Income $89M $69M Up $20M $68M Up $21M All Other Category Operating Loss $(52)M $(33)M Down $19M $(46)M Down $6M TOTAL Net Revenue $1,531M $1,756M Down $225M $1,272M Up $259M Operating Income $59M $153M Down $95M $38M Up $20M 14 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

Q2 2019 SUMMARY BALANCE SHEET ITEMS Q2 2019 Q2 2018 Y/Y Q1 2019 Q/Q Cash, Cash Equivalents & Marketable Securities $1,128M $983M Up $145M $1,194M Down $66M Accounts Receivable, Net $1,333M $1,118M Up $215M $1,241M Up $92M Inventories, Net $1,015M $750M Up $265M $955M Up $60M Total Debt (principal amount)(1) $1,293M $1,685M Down $392M $1,363M Down $70M Total Debt, Net(1) $1,031M $1,393M Down $362M $1,094M Down $63M Reduced $392 million of principal debt y/y No term debt maturities until 2022 1. See Appendices for Total Debt reconciliation. 15 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

TOTAL CASH BALANCE(1) ($ IN MILLIONS) $1,185 $1,194 $1,156 $1,128 $1,045 $1,056 $983 $879 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Used $70 million in Q2’19 to pay off asset backed loan 1. Cash, cash equivalents and marketable securities. 16 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

OPERATING INCOME AND ADJUSTED EBITDA TREND ($ IN MILLIONS, CALCULATED AS TRAILING TWELVE MONTHS)(1) $803 $737 Operating EBITDA $709 Income $666 $672 $496 $451 $421 $368 $390 $369 $275 $236 $127 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 1. See Appendices for reconciliation 17 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

DEBT TREND (PRINCIPAL AMOUNT, $ IN MILLIONS, GROSS LEVERAGE TREND)(1,2) $1,699 $1,686 $1,685 $1,588 $1,528 $1,363 $1,293 4.6x 3.4x 2.5x 2.2x 1.9x 1.8x 1.9x Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Significant debt reduction 1. See Appendices for reconciliation to Total Debt. 2. Gross Leverage = Current + long-term debt divided by trailing 12 months adjusted EBITDA. 3. See Appendices for Adjusted EBITDA. 18 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

AMD Q2’19 PRODUCT & ECOSYSTEM MOMENTUM ▪ Ramped production of three leadership 7nm product families across PC, graphics & datacenter ▪ Ryzen 3000 desktop processors, Radeon 5700 series GPUs, 2nd Gen EPYC “Rome” datacenter CPUs (1) ▪ Released “Zen 2” CPU core with up to ~15% instructions per clock uplift over the “Zen” architecture ▪ Added over 40 new consumer and commercial Ryzen Mobile and Ryzen Mobile PRO processors from leading OEMS year-to-date ▪ 2nd Gen EPYC “Rome” processors on track to ramp significantly faster than 1st Gen EPYC ▪ Amazon expanded availability of EPYC processor powered instances to more than 15 regions ▪ Microsoft launched Azure HB supercomputing virtual machines powered by EPYC processors ▪ Introduced RDNA gaming architecture to drive the future of PC, console and cloud gaming ▪ Announced a multi-year strategic partnership with Samsung for AMD graphics ▪ Apple announced Radeon™ Pro Vega II GPUs in their all-new Mac Pro ▪ AMD will power back-to-back game console generations for Microsoft & Sony 1. See Slide 28 for Endnotes. 19 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

Q3 2019 AND FY 2019 FINANCIAL OUTLOOK – NON GAAP(1) Q3 2019 FY 2019 ~$1.80 Billion Up mid-single digit Revenue +/- $50 Million percentage y/y Gross Margin % ~43% ~42% Licensing Gain(2) - ~$60 Million Operating Expenses ~$525 Million ~30% Operating Expenses/Revenue % Interest Expense, Taxes and Other ~$30 Million - Taxes - ~4% of pre-tax income Free Cash Flow Positive Positive Diluted Share Count(3) ~1.213 Billion ~1.210 Billion 1. These are forward looking statements. See Cautionary Statement on Slide 2. AMD’s outlook statements are based on current expectations as of July 30, 2019. AMD undertakes no intent or obligation to publicly update or revise its outlook statements whether as a result of new information, future events or otherwise, except to the extent that disclosure may be required by law. All items except revenue are on a non-GAAP basis. 2. Licensing gain recorded in Q1 2019. 3. See Slide 26 for Diluted Share Count overview. 20 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

Q2 2019 SUMMARY REVENUE GREW CONTINUED Y/Y LAUNCHED NEW EXECUTING TO 20% Q/Q GROSS MARGIN 7NM PRODUCTS LONG-TERM IMPROVEMENT FINANCIAL MODEL 21 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

2019 THE BIGGEST AND BEST YEAR IN AMD HISTORY 22 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

APPENDICES Reconciliation of GAAP to Non-GAAP Gross Margin (Millions) Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 GAAP gross margin $ 571 $ 452 $ 597 $ 652 $ 661 $ 537 $ 521 $ 621 GAAP gross margin % 36% 34% 36% 37% 40% 38% 41% 41% Impairment of technology licenses — — — — — 45 — — Stock-based compensation 1 — 1 1 1 1 1 2 Non-GAAP gross margin $ 572 $ 452 $ 598 $ 653 $ 662 $ 583 $ 522 $ 623 Non-GAAP gross margin % 36% 34% 36% 37% 40% 41% 41% 41% Reconciliation of GAAP to Non-GAAP Operating Expenses (Millions) Q2'19 Q2'18 Q1'19 GAAP operating expenses $ 562 $ 499 $ 543 GAAP Operating Expense/Revenue % 37% 28% 43% Stock-based compensation 43 32 40 Loss contingency on legal matter 7 — 5 Non-GAAP operating expenses $ 512 $ 467 $ 498 Non-GAAP Operating Expense/Revenue % 33% 27% 39% 23 |AMD Q2 2019 FINANCIAL RESULTS | July 30, 2019

APPENDICES Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Millions) Q2'19 Q2'18 Q1'19 GAAP operating income $ 59 $ 153 $ 38 Stock-based compensation 45 33 41 Loss contingency on legal matter 7 — 5 Non-GAAP operating income $ 111 $ 186 $ 84 Reconciliation of GAAP Operating Income to Adjusted EBITDA (Calculated as Trailing Twelve Months) (Millions) Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 GAAP operating income $ 127 $ 236 $ 390 $ 421 $ 451 $ 369 $ 275 Impairment of technology licenses — — — — 45 45 45 Stock-based compensation 97 106 115 122 137 146 158 Depreciation and amortization 144 154 161 166 170 172 182 Loss contingency on legal matter — — — — — 5 12 Adjusted EBITDA $ 368 $ 496 $ 666 $ 709 $ 803 $ 737 $ 672 24 |AMD Q2 2019 FINANCIAL RESULTS | July 30, 2019

APPENDICES Reconciliation of GAAP to Non-GAAP Net Income (Loss) / Earnings (Loss) Per Share (Millions, except per share data) Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 GAAP net income (loss) / earnings (loss) per share (1) $ 61 $ 0.06 $ (19) $ (0.02) $ 81 $ 0.08 $ 116 $ 0.11 $ 102 $ 0.09 $ 38 $ 0.04 $ 16 $ 0.01 $ 35 $ 0.03 Loss on debt redemption 2 — 3 — 1 — — — 6 — 5 — 8 0.01 — — Non-cash interest expense related to convertible debt 6 0.01 5 — 6 — 6 — 6 0.01 6 0.01 6 0.01 6 — Stock-based compensation 29 0.02 21 0.02 32 0.03 33 0.03 36 0.03 36 0.03 41 0.04 45 0.04 Gain on sale of 85% of ATMP — — (3) — — — — — — — — — — — — — Tax provision related to sale of 85% of ATMP JV — — 1 — — — — — — — — — — — — — Impairment of technology licenses — — — — — — — — — — 45 0.04 — — — — Equity loss in investee 2 — — — 1 — 1 — — — — — 1 — — — Withholding tax refund including interest — — — — — — — — — — (43) (0.04) — — — — Loss contingency on legal matter — — — — — — — — — — — — 5 — 7 0.01 Provision (benefit) for income taxes (2) — — — — — — — — — — — — (15) (0.01) (1) — Non-GAAP net income / earnings per share (3) $ 100 $ 0.09 $ 8 $ 0.01 $ 121 $ 0.11 $ 156 $ 0.14 $ 150 $ 0.13 $ 87 $ 0.08 $ 62 $ 0.06 $ 92 $ 0.08 Shares used and net income adjustment in earnings (loss) per share calculation Shares used in per share calculation (GAAP) 1,042 965 1,039 1,147 1,076 1,079 1,094 1,109 Interest expense add-back to GAAP net income $ — $ — $ — $ 11 $ — $ — $ — $ — Shares used in per share calculation (Non-GAAP) 1,143 1,037 1,040 1,147 1,177 1,180 1,195 1,210 Interest expense add-back to Non-GAAP net income $ 5 $ — $ 4 $ 5 $ 4 $ 5 $ 5 $ 5 (1) Q2'18 GAAP diluted EPS calculation includes the 100.6 million shares related to the Company’s 2026 Convertible Notes and the associated $11 million interest expense add-back to net income under the "if converted" method. (2) The adjustment in the three months ended March 30, 2019 represents a reduction of US taxes due to the completion of certain internal tax structuring. The associated tax benefit on a Non-GAAP basis is being recognized throughout 2019. (3) Q4'17 Non-GAAP diluted EPS calculations do not include 100.6 million shares related to the Company’s 2026 Convertible Notes and the associated interest expense add-back to Non-GAAP net income because their inclusion would have been anti-dilutive under the "if-converted' method. 25 |AMD Q2 2019 FINANCIAL RESULTS | July 30, 2019

APPENDICES Share Count Overview Shares (millions) (1) Q1'19 Q2'19 Q3'19 FY'19 Actual Actual Estimate Estimate Basic Shares 1,044 1,084 1,093 1,081 Dilutive impact from: Employee Equity Grants (2) 23 25 19 21 75 million share Warrant (3) 27 — — 7 Diluted Shares (without 2026 Convertible Notes) 1,094 1,109 1,112 1,109 2026 Convertible Notes (4) 101 101 101 101 Diluted Shares (with 2026 Convertible Notes) 1,195 1,210 1,213 1,210 The table above provides an estimate of share count that may be used when calculating GAAP and non-GAAP diluted earnings per share for Q3`19 and FY'19. (Q1’19 and Q2'19 are actual share count) (1) Share counts are weighted average shares. (2) The dilutive impact of employee equity grants is based on the Treasury Stock method and is dependent upon the average stock price during the period. Q1’19 and Q2'19 average stock price was $22.63 and $28.53, respectively. The Q2'19 average stock price of $28.53 was assumed for Q3'19 and FY’19 estimates. (3) The dilutive impact of the warrant to purchase 75 million shares (Warrant) granted in 2016 to a wholly owned subsidiary of Mubadala Investment Company PJSC, West Coast Hitech L.P. (WCH), in consideration for limited waiver and rights under the sixth amendment to our Wafer Supply Agreement with GLOBALFOUNDRIES Inc. is based on the Treasury Stock method and is dependent upon the average stock price during the period. The Warrant was exercised and common stock shares were issued on February 13, 2019. Therefore, Q1'19 and FY'19 includes the dilutive impact through the date of exercise. (4) The dilutive impact from the 2.125% Convertible Senior Notes due 2026 (2026 Convertible Notes) is based on the If-Converted method, where the interest costs associated with the 2026 Convertible Notes are added back to the Net Income and the 100.6 million shares underlying the 2026 Convertible Notes are assumed to be converted and are added to the share count. The impact from the 2026 Convertible Notes, if dilutive, is included in diluted EPS calculation. For the GAAP computation, the add-back to net income includes cash and non-cash interest expense, while only the cash interest expense is added back to non- GAAP net income. Moving forward, assuming positive earnings per share, the potential factors we expect may impact AMD's diluted share count include: • On-going employee equity grants, and • The 2026 Convertible Notes, which has 100.6 million underlying shares. 26 |AMD Q2 2019 FINANCIAL RESULTS | July 30, 2019

APPENDICES Total Debt (Net) (Millions) Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 6.75% Senior Notes due 2019 $ 166 $ 153 $ 153 $ 66 $ 66 $ — $ — 7.50% Senior Notes due 2022 347 347 347 337 337 312 312 7.00% Senior Notes due 2024 311 311 310 310 250 176 176 2.125% Convertible Senior Notes due 2026 805 805 805 805 805 805 805 Borrowings from secured revolving line of credit, net 70 70 70 70 70 70 — Total Debt (principal amount) $ 1,699 $ 1,686 $ 1,685 $ 1,588 $ 1,528 $ 1,363 $ 1,293 Unamortized debt discount associated with 2.125% Convertible Senior Notes due 2026 (286) (280) (274) (268) (262) (256) (250) Unamortized debt issuance costs (19) (19) (18) (17) (16) (13) (12) Other 1 1 — — — — — Total Debt (net) $ 1,395 $ 1,388 $ 1,393 $ 1,303 $ 1,250 $ 1,094 $ 1,031 27 |AMD Q2 2019 FINANCIAL RESULTS | July 30, 2019

ENDNOTES Slide 19: AMD "Zen 2" CPU-based system scored an estimated 15% higher than previous generation AMD “Zen” based system using estimated SPECint®_base2006 results. SPEC and SPECint are registered trademarks of the Standard Performance Evaluation Corporation. See www.spec.org. RZ3-34. 28 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019

DISCLAIMERS AND ATTRIBUTIONS The information contained herein is for informational purposes only, and is subject to change without notice. Timelines, roadmaps, and/or product release dates shown in these slides are plans only and subject to change. “Polaris”, “Vega”, “Radeon Vega”, “Navi”, “Zen”, “Rome” and “Naples” are codenames for AMD architectures, and are not product names. While every precaution has been taken in the preparation of this document, it may contain technical inaccuracies, omissions and typographical errors, and AMD is under no obligation to update or otherwise correct this information. Advanced Micro Devices, Inc. makes no representations or warranties with respect to the accuracy or completeness of the contents of this document, and assumes no liability of any kind, including the implied warranties of non-infringement, merchantability or fitness for particular purposes, with respect to the operation or use of AMD hardware, software or other products described herein. No license, including implied or arising by estoppel, to any intellectual property rights is granted by this document. Terms and limitations applicable to the purchase or use of AMD’s products are as set forth in a signed agreement between the parties or in AMD's Standard Terms and Conditions of Sale. ©2019 Advanced Micro Devices, Inc. All rights reserved. AMD, the AMD Arrow logo, Radeon, Ryzen, and combinations thereof are trademarks of Advanced Micro Devices, Inc. Other product names used in this presentation are for identification purposes only and may be trademarks of their respective companies. 29 | AMD Q2 2019 FINANCIAL RESULTS | JULY 30, 2019