Advanced Micro Devices (AMD) risk factors, FY2024 10-K

Other

1. 01Nvidia’s dominance in the graphics processing unit market and its aggressive business practices may limit our ability to compete effectively on a level playing field
2. 02The markets in which our products are sold are highly competitive and rapidly evolving
3. 03The semiconductor industry is highly cyclical and has experienced severe downturns that have materially adversely affected, and may continue to materially adversely affect, our business in the future
4. 04The demand for our products depends in part on the market conditions in the industries into which they are sold. Fluctuations in demand for our products or a market decline in any of these industries could have a material adverse effect on our results of operations
5. 05The success of our business depends on our ability to introduce products on a timely basis with features and performance levels that provide value to our customers while supporting and coinciding with significant industry transitions
6. 06The loss of a significant customer may have a material adverse effect on us
7. 07Economic and market uncertainty may adversely impact our business and operating results
8. 08Our operating results are subject to quarterly and seasonal sales patterns
9. 09If we cannot adequately protect our technology or other intellectual property in the United States and abroad, through patents, copyrights, trade secrets, trademarks and other measures, we may lose a competitive advantage and incur significant expenses
10. 10Unfavorable currency exchange rate fluctuations could adversely affect us

Operational and Technology Risks

1. 11We rely on third parties to manufacture our products, and if they are unable to do so on a timely basis in sufficient quantities and using competitive technologies, our business could be materially adversely affected
2. 12If essential equipment, materials, substrates or manufacturing processes are not available to manufacture our products, we could be materially adversely affected
3. 13Failure to achieve expected manufacturing yields for our products could negatively impact our results of operations
4. 14Our revenue from our semi-custom SoC products is dependent upon our semi-custom SoC products being incorporated into customers’ products and the success of those products
5. 15Our products may be subject to security vulnerabilities that could have a material adverse effect on us
6. 16IT outages, data loss, data breaches and cyberattacks could disrupt operations and compromise our intellectual property or other sensitive information, be costly to remediate or cause significant damage to our business, reputation, financial condition and results of operations
7. 17Uncertainties involving the ordering and shipment of our products could materially adversely affect us
8. 18Our ability to design and introduce new products in a timely manner includes the use of third-party intellectual property
9. 19We depend on third-party companies for the design, manufacture and supply of motherboards, software, memory and other computer platform components to support our business and products
10. 20If we lose Microsoft Corporation’s support for our products or other software vendors do not design and develop software to run on our products, our ability to sell our products could be materially adversely affected
11. 21Our reliance on third-party distributors and AIB partners subjects us to certain risks
12. 22Our business depends on the proper functioning of our internal business processes and information systems and modification or interruption of such systems may disrupt our business, processes and internal controls
13. 23If our products are not compatible with some or all industry-standard software and hardware, we could be materially adversely affected
14. 24Costs related to defective products could have a material adverse effect on us
15. 25If we fail to maintain the efficiency of our supply chain as we respond to changes in customer demand for our products, our business could be materially adversely affected
16. 26We outsource to third parties certain supply-chain logistics functions, including portions of our product distribution, transportation management and information technology support services
17. 27Our inability to effectively control the sales of our products on the gray market could have a material adverse effect on us
18. 28Climate change may have a long-term impact on our business

Legal and Regulatory Risks

1. 29Government actions and regulations such as export regulations, tariffs, and trade protection measures may limit our ability to export our products to certain customers
2. 30If we cannot realize our deferred tax assets, our results of operations could be adversely affected
3. 31We are party to litigation and may become a party to other claims or litigation that could cause us to incur substantial costs or pay substantial damages or prohibit us from selling our products
4. 32We are subject to environmental laws, conflict minerals regulations, as well as a variety of other laws or regulations that could result in additional costs and liabilities
5. 33Evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters could result in additional costs, harm to our reputation and a loss of customers
6. 34Issues related to the responsible use of AI may result in reputational, competitive and financial harm and liability
7. 35The agreements governing our notes, our guarantee of the Assumed Xilinx Notes, and our Revolving Credit Agreement impose restrictions on us that may adversely affect our ability to operate our business
8. 36Acquisitions, joint ventures, and/or strategic investments, and the failure to integrate acquired businesses, may fail to materialize their anticipated benefits and could disrupt our business, which could adversely affect our results of operation and financial condition
9. 37Our ability to complete the acquisition of ZT Systems is subject to closing conditions, including the receipt of consents and approvals from government authorities, which may impose conditions that could adversely affect us or cause the acquisition to not be completed
10. 38Any impairment of our tangible, definite-lived intangible or indefinite-lived intangible assets, including goodwill, may adversely impact our financial position and results of operations

General Risks

1. 39Our worldwide operations are subject to political, legal and economic risks and natural disasters, which could have a material adverse effect on us
2. 40We may incur future impairments of our technology license purchases
3. 41Our inability to continue to attract and retain qualified personnel may hinder our business
4. 42Our stock price is subject to volatility