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Will AMD’s Operating Margin Improve in 2018?

Will AMD’s Operating Margin Improve in 2018?

Advanced Micro Devices (AMD) is on track to improve its profit margin by accelerating revenue growth through high-end products and the reduction of expenditure. In the previous article, we saw that the company expects to expand its gross margin to 36%. On the operational front, AMD reduced its non-GAAP (generally accepted accounting principles) operating expenses as a percentage of its revenue from 37% in 1Q17 to 27.8% in 4Q17, bringing it within its long-term target range of 26%–30%. The company expects to maintain its operating expense ratio at 28% in 1Q18 and 2018.