Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Management, including the Chief Operating Decision Maker (CODM), who is the Company’s Chief Executive Officer, reviews and assesses operating performance using segment net revenue, consolidated cost of sales and operating expenses and operating income (loss). These performance measures include the allocation of expenses to the reportable segments based on management’s judgment. The CODM is regularly provided segment operating income to assess relative segment performance.
The Company’s four reportable segments are:

•the Data Center segment, which primarily includes Artificial Intelligence (AI) accelerators, server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs) and Adaptive System-on-Chip (SoC) products for data centers;
•the Client segment, which primarily includes CPUs, APUs, and chipsets for desktops and notebooks;
•the Gaming segment, which primarily includes discrete GPUs, and semi-custom SoC products and development services; and
•the Embedded segment, which primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products.
From time to time, the Company may also sell or license portions of its IP portfolio.
In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category primarily includes certain expenses and credits that are not allocated to any of the reportable segments because the CODM does not consider these expenses and credits in evaluating the performance of the reportable segments. This category primarily includes amortization of acquisition-related intangibles, employee stock-based compensation, acquisition-related and other costs, restructuring charges and licensing gain. Acquisition-related and other costs primarily include transaction costs, purchase price fair value adjustments for inventory, certain compensation charges, contract termination costs and workforce rebalancing charges.
The following table provides a summary of net revenue and operating income (loss) by segment for 2024, 2023 and 2022.
Year Ended
December 28,
2024		 December 30,
2023		 December 31,
2022
(In millions)
Net revenue:
Data Center $ 12,579  $ 6,496  $ 6,043 
Client 7,054  4,651  6,201 
Gaming 2,595  6,212  6,805 
Embedded 3,557  5,321  4,552 
Total net revenue $ 25,785  $ 22,680  $ 23,601 
Cost of sales and operating expenses:
Data Center
 $ 9,097  $ 5,229  $ 4,195 
Client
6,157  4,697  5,011 
Gaming
2,305  5,241  5,852 
Embedded
 2,136  2,693  2,300 
All Other
 4,190  4,419  4,979 
Total cost of sales and operating expenses
 $ 23,885  $ 22,279  $ 22,337 
Operating income (loss):
Data Center $ 3,482  $ 1,267  $ 1,848 
Client 897  (46) 1,190 
Gaming 290  971  953 
Embedded 1,421  2,628  2,252 
All Other (4,190) (4,419) (4,979)
Total operating income
$ 1,900  $ 401  $ 1,264 
Segment cost of sales and operating expenses primarily include material, external manufacturing, labor and marketing and advertising costs, and exclude expenses and credits that are recorded within the All Other category.
The following table provides items included in All Other category:
Year Ended
December 28,
2024		 December 30,
2023		 December 31,
2022
  (In millions)
Operating loss:    
Amortization of acquisition-related intangibles $ 2,394  $ 2,811  $ 3,548 
Stock-based compensation expense 1,407  1,384  1,081 
Acquisition-related and other costs 186  258  452 
Restructuring charges 186  —  — 
Inventory loss at contract manufacturer 65  —  — 
Licensing gain (48) (34) (102)
Total operating loss $ 4,190  $ 4,419  $ 4,979 
The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information.
The following table summarizes sales to external customers by geographic regions based on billing location of the customer:
Year Ended
December 28,
2024		 December 30,
2023		 December 31,
2022
  (In millions)
United States 8,693  7,837  8,049 
China (including Hong Kong) 6,231  3,417  5,207 
Singapore 3,614  2,231  1,380 
Taiwan 3,301  1,841  2,369 
Japan 1,767  4,629  4,177 
Europe 1,625  2,030  1,773 
Other regions 554  695  646 
Total sales to external customers $ 25,785  $ 22,680  $ 23,601 
The following table summarizes sales to a major customer that accounted for at least 10% of the Company’s consolidated net revenue for the respective years:
Year Ended
Segment
 December 28,
2024		 December 30,
2023		 December 31,
2022
Customer A Gaming * 18  % 16  %
*
Less than 10%
The following table summarizes Property and equipment, net by geographic areas:
December 28,
2024		 December 30,
2023
  (In millions)
United States $ 1,312  $ 1,143 
Singapore 140 144
Canada 104 84
India 100 86
Ireland 46 46
China (including Hong Kong) 38 42
Other countries 62 44
Total property and equipment, net $ 1,802  $ 1,589