Advanced Micro Devices Inc. (NASDAQ:AMD)

Total assets exhibited substantial growth between December 25, 2021, and December 27, 2025. However, adjusted total assets present a slightly different picture, indicating a consistent, though smaller, divergence from the reported total assets. The analysis below details these observations.

Overall Growth

Reported total assets increased from US$12,419 million in 2021 to US$76,926 million in 2025, representing a significant expansion over the five-year period. The most substantial increase occurred between 2021 and 2022, with a jump to US$67,580 million. Growth continued, albeit at a decelerating rate, reaching US$67,885 million in 2023 and US$69,226 million in 2024 before accelerating again to US$76,926 million in 2025.

Adjustments to Total Assets

Adjusted total assets closely mirrored reported total assets throughout the period. In 2021, the adjustment reduced total assets by US$931 million. The difference between reported and adjusted total assets remained relatively small in 2022 and 2023, at US$58 million and US$66 million respectively. A more noticeable divergence appeared in 2024, with an adjustment of US$688 million, and continued in 2025, with an adjustment of US$384 million. This suggests a growing impact from the adjustments made to the initially reported asset values.

Trend in Adjustment Magnitude

While the initial adjustment in 2021 was the largest in absolute terms, the relative magnitude of the adjustment, when considered as a percentage of total assets, appears to be increasing towards the end of the period. The adjustment represented approximately 7.5% of total assets in 2021, decreasing to around 0.1% in 2022 and 0.1% in 2023. However, it rose to approximately 0.99% in 2024 and 0.5% in 2025. This increasing percentage suggests that the factors necessitating these adjustments are becoming more significant relative to the overall asset base.

In conclusion, the company experienced considerable asset growth during the analyzed period. The adjustments to total assets, while consistently below the reported figures, demonstrate a trend of increasing magnitude, warranting further investigation into the nature of these adjustments and their potential impact on the company’s financial position.

Total liabilities exhibited significant fluctuation over the five-year period. Initially, a substantial increase is observed, followed by a period of relative stabilization and a final increase. The adjusted total liabilities demonstrate a similar pattern, though with dampened magnitudes in the changes.

Overall Trend in Total Liabilities

Total liabilities increased markedly from US$4,922 million in 2021 to US$12,830 million in 2022, representing a more than 160% rise. This was followed by a decrease to US$11,993 million in 2023 and a further slight decrease to US$11,658 million in 2024. A subsequent increase to US$13,927 million is noted in 2025.

Overall Trend in Adjusted Total Liabilities

Adjusted total liabilities mirrored the trend of total liabilities, increasing from US$4,859 million in 2021 to US$10,831 million in 2022, a rise of over 122%. A decrease to US$10,706 million occurred in 2023, followed by a slight increase to US$11,032 million in 2024. Finally, adjusted total liabilities increased to US$13,296 million in 2025.

Difference Between Total and Adjusted Liabilities

The difference between total liabilities and adjusted total liabilities remained relatively consistent throughout the period, generally ranging between US$60 and US$70 million annually. This suggests that the adjustments applied are systematic and do not represent large-scale revisions to the liability structure. The difference widens slightly in 2025, reaching US$631 million.

The substantial increase in liabilities between 2021 and 2022 warrants further investigation to understand the underlying drivers, such as increased debt financing or accrual of obligations. The subsequent stabilization and final increase in 2025 suggest a dynamic liability management strategy. The consistent difference between the reported and adjusted figures indicates a recurring adjustment process.

Stockholders’ equity exhibited substantial growth over the five-year period. Initially, a significant increase occurred between 2021 and 2022, followed by more moderate growth in subsequent years. Adjusted stockholders’ equity mirrored this trend, though with differing magnitudes of change.

Overall Trend in Stockholders’ Equity

Stockholders’ equity increased from US$7,497 million in 2021 to US$62,999 million in 2025. The most dramatic rise was observed between 2021 and 2022, with an increase of US$47,253 million. Growth slowed considerably in the following years, ranging from US$1,142 million to US$5,431 million annually.

Overall Trend in Adjusted Stockholders’ Equity

Adjusted stockholders’ equity also demonstrated an upward trajectory, moving from US$6,629 million in 2021 to US$63,246 million in 2025. Similar to the trend in stockholders’ equity, the largest increase occurred between 2021 and 2022, amounting to US$49,062 million. Subsequent annual increases were smaller, varying between US$92 million and US$5,740 million.

Relationship Between Stockholders’ Equity and Adjusted Stockholders’ Equity

The difference between stockholders’ equity and adjusted stockholders’ equity remained relatively consistent throughout the period. In each year, adjusted stockholders’ equity was lower than reported stockholders’ equity, suggesting the presence of adjustments reducing the reported value. The initial difference in 2021 was US$868 million, and the difference in 2025 was US$753 million. This indicates a narrowing of the gap over time, though the adjustments continue to have a material impact.

Growth Rate Deceleration

The percentage growth in both stockholders’ equity and adjusted stockholders’ equity decelerated significantly after 2022. The substantial increase in 2022 likely reflects a specific event or series of events that had a considerable positive impact on equity. The subsequent years show a return to more typical, lower growth rates. This deceleration warrants further investigation to understand the underlying causes.

In summary, both reported and adjusted stockholders’ equity experienced significant growth, particularly between 2021 and 2022. While growth continued in subsequent years, the rate of increase slowed considerably. The consistent adjustments to stockholders’ equity suggest ongoing factors impacting the reported value, and the narrowing difference between the two figures may indicate a change in the nature or magnitude of these adjustments.

An examination of the financial information reveals notable shifts in the reported and adjusted capitalization structure over the five-year period. Significant discrepancies exist between reported and adjusted figures for debt, stockholders’ equity, and total capital, suggesting the presence of items requiring adjustment to present a potentially more accurate financial picture.

Total Reported Debt

Total reported debt demonstrates substantial volatility. It increased significantly from 2021 to 2022, remaining relatively stable through 2023, then decreased in 2024, followed by another increase in 2025. The magnitude of the increase from 2021 to 2022 (from US$313 million to US$2,467 million) is particularly noteworthy.

Stockholders’ Equity

Stockholders’ equity exhibits a consistent upward trend throughout the period. Growth is most pronounced between 2021 and 2022, increasing from US$7,497 million to US$54,750 million. Subsequent annual increases, while substantial, are less dramatic, culminating in US$62,999 million in 2025.

Total Reported Capital

Total reported capital mirrors the trends observed in debt and stockholders’ equity, showing a large increase from 2021 to 2022, followed by more moderate growth in subsequent years. The overall trend is positive, reaching US$66,221 million in 2025.

Adjusted Total Debt

Adjusted total debt also shows an increase over the period, though the magnitude is considerably smaller than that of the reported debt. The increase from 2021 to 2025 is from US$732 million to US$4,006 million. The pattern of increase is relatively consistent year-over-year.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity follows a similar upward trajectory to its reported counterpart, though at a slightly lower level. The increase from 2021 to 2025 is from US$6,629 million to US$63,246 million. The growth rate appears to be relatively stable.

Adjusted Total Capital

Adjusted total capital demonstrates a steady increase throughout the period, moving from US$7,361 million in 2021 to US$67,252 million in 2025. The growth is less volatile than the reported total capital, suggesting the adjustments are smoothing out fluctuations.

Relationship Between Reported and Adjusted Values

The consistent differences between reported and adjusted values across all three categories (debt, equity, and total capital) indicate that the adjustments are material and likely relate to specific accounting treatments or reclassifications. The substantial initial adjustment in 2022 warrants further investigation to understand the nature of the items being adjusted. The increasing gap in reported debt versus adjusted debt suggests a growing amount of items are being reclassified or adjusted out of the debt calculation.

In summary, the capitalization structure exhibits significant growth over the five-year period, particularly in 2022. The adjustments made to the financial items suggest the presence of factors impacting the reported figures, and the consistent differences between reported and adjusted values highlight the importance of understanding the underlying reasons for these adjustments.

Reported net income demonstrates considerable fluctuation over the five-year period. Initial values are high, followed by a substantial decline, a period of recovery, and ultimately, a return to elevated levels. However, adjusted net income presents a markedly different picture, characterized by significant volatility and, in some years, negative values.

Net Income Trend

Net income began at US$3,162 million in 2021, decreased significantly to US$1,320 million in 2022, and continued to decline to US$854 million in 2023. A recovery is then observed in 2024, with net income rising to US$1,641 million, followed by a substantial increase to US$4,335 million in 2025.

Adjusted Net Income Trend

Adjusted net income started at US$3,464 million in 2021, but experienced a dramatic reversal in 2022, resulting in a net loss of US$209 million. This negative trend continued into 2023, with adjusted net income reaching a loss of US$114 million. A positive shift occurred in 2024, with adjusted net income increasing to US$611 million, and further improvement was seen in 2025, reaching US$4,628 million.

Relationship Between Reported and Adjusted Income

The divergence between net income and adjusted net income is notable. While net income consistently remains positive, adjusted net income experiences periods of substantial negative values. This suggests the presence of significant non-recurring items or accounting adjustments that materially impact the reported earnings. The magnitude of these adjustments appears to be increasing over time, particularly in 2022 and 2023, before diminishing in 2024 and 2025.

The substantial differences between the two income measures warrant further investigation to understand the nature and impact of the adjustments being made. The trend in adjusted net income suggests underlying operational performance may be more volatile than indicated by reported net income alone.