Advanced Micro Devices (AMD) risk factors, FY2025 10-K

Other

1. 01The 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 future22% rewritten
2. 02The 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 operations44% rewritten
3. 03The 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 transitions32% rewritten
4. 04The loss of a significant customer may have a material adverse effect on us
5. 05Economic and market uncertainty may adversely impact our business and operating results35% rewritten
6. 06Our operating results are subject to quarterly and seasonal sales patterns
7. 07If 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
8. 08Unfavorable currency exchange rate fluctuations could adversely affect us

Operational and Technology Risks

1. 09We 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. 10If essential equipment, materials, substrates or manufacturing processes are not available to manufacture our products, we could be materially adversely affected
3. 11Failure to achieve expected manufacturing yields for our products could negatively impact our results of operations
4. 12Our 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. 13Our products may be subject to security vulnerabilities that could have a material adverse effect on us
6. 14IT 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. 15Uncertainties involving the ordering and shipment of our products could materially adversely affect us36% rewritten
8. 16Our ability to design and introduce new products in a timely manner includes the use of third-party intellectual property
9. 17We 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. 18If 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. 19Our reliance on third-party distributors and AIB partners subjects us to certain risks
12. 20Our 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. 21If our products are not compatible with some or all industry-standard software and hardware, we could be materially adversely affected
14. 22Costs related to defective products could have a material adverse effect on us
15. 23If 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. 24We outsource to third parties certain supply-chain logistics functions, including portions of our product distribution, transportation management and information technology support services
17. 25Our inability to effectively control the sales of our products on the gray market could have a material adverse effect on us58% rewritten
18. 26Climate change may have an impact on our business65% rewritten

Legal and Regulatory Risks

1. 27Government actions and regulations such as export regulations, import tariffs, and trade protection measures may limit our ability to export our products to certain customers76% rewritten
2. 28If we cannot realize our deferred tax assets, our results of operations could be adversely affected35% rewritten
3. 29We 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. 30We 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. 31Evolving 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 customers27% rewritten
6. 32Issues related to the responsible use of AI may result in reputational, competitive and financial harm and liability
7. 33The agreements governing our notes, our guarantee of the Assumed Xilinx Notes and the Revolving Credit Agreement impose restrictions on us that may adversely affect our ability to operate our business
8. 34We may be required to satisfy financial obligations under guarantees and other commercial commitmentsNew
9. 35Acquisitions, joint ventures, and/or 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 condition32% rewritten
10. 36Any impairment of our tangible, definite-lived intangible or indefinite-lived intangible assets, including goodwill, may adversely impact our financial position and results of operations71% rewritten

General Risks

1. 37Our worldwide operations are subject to political, legal and economic risks and natural disasters, which could have a material adverse effect on us27% rewritten
2. 38We may incur future impairments of our technology license purchases
3. 39Our inability to continue to attract and retain key employees may hinder our business49% rewritten
4. 40Our stock price is subject to volatility36% rewritten