ADVANCED MICRO DEVICES INC

We are providing the following information pursuant to the SEC pay versus performance disclosure requirements set forth in Item 402(v) of SEC Regulation

S-K

(the “Pay Versus Performance Rule”), which requires disclosure of certain information about the relationships between our performance and the compensation of our named executive officers. The following table reports, for the three most-recent fiscal years, the compensation of our Chief Executive Officer and the average compensation of our other

non-CEO

named executive officers

(“Non-CEO

Named Executive Officers”), as well as the “Compensation Actually Paid” as calculated in accordance with the Pay Versus Performance Rule and certain performance measures required by the rule. The amounts reported as “Compensation Actually Paid” do not reflect the actual amount of compensation earned by or paid to our Chief Executive Officer or our

Non-CEO

Named Executive Officers and differ from the compensation amounts disclosed elsewhere in this proxy statement. For a discussion of our executive compensation program and philosophy, please refer to our “Compensation Discussion and Analysis” section.

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Pay Versus Performance Table

(continued)

For purposes of the foregoing adjustments, the value of equity awards was determined as follows: (i) for RSUs, the closing price of our common stock on the fiscal year-end date, or, in the case of vesting RSUs, the closing price of our common stock on the applicable vesting date; (ii) for stock options, a Black Scholes value as of year-end or the vesting date(s), as applicable, determined based on the same methodology as used to determine grant date fair value but using the closing share price on the applicable revaluation date, and the market price volatility, expected remaining life and risk free rates, each as re-measured as of the applicable revaluation date, and where applicable, taking into account the incremental fair value, calculated in accordance with ASC Topic 718, of any material modifications that occurred during the fiscal year, and (iii) for unvested PRSUs as of fiscal year-end, the estimate of the most probable aggregate compensation cost to be recognized over the requisite service period determined as of fiscal year-end under ASC Topic 718, calculated using a Monte-Carlo simulation model and based upon a discounted cash flow analysis of the probability-weighted payoffs of a share-based payment assuming a variety of possible stock price paths and for the 2022 and 2023 PRSUs (see footnotes to Outstanding Equity Awards at 2023 Fiscal Year-End table for more information).

Relationship Between Compensation Actually Paid and our Total Shareholder Return

Our stock price performance is the predominant factor that determines whether the Compensation Actually Paid to our named executive officers is at, above, or below the amounts reported in our summary compensation tables. The Compensation Actually Paid directly correlates with our total shareholder return (“TSR”) since most of our executive compensation is delivered through long-term equity awards in the form of PRSUs, RSUs, and stock options which vary in value with changes to our stock price. The chart below compares the Compensation Actually Paid during the 2023, 2022, 2021 and 2020 fiscal years to our cumulative TSR since December 29, 2019 (the last day of our 2019 fiscal year), measured as of the last day of each of those fiscal years.

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Pay Versus Performance Table

(continued)

Relationship Between Compensation Actually Paid and our Net Income (GAAP and

Non-GAAP)

GAAP and

net income are key measures of our overall profitability and can contribute to changes in our stock price, which in turn primarily drives Compensation Actually Paid. We do not use GAAP net income as a financial measure in our executive compensation program, but we use

net income which is derived from our GAAP net income.

Non-GAAP

net income is the primary performance factor for determining cash bonuses under our EIP for each of the covered fiscal years and the growth of our

earnings per share, which is derived from our

net income, is also a performance measure used to determine the payouts under the annual PRSU awards granted in each of the covered fiscal years.

Between 2020 and 2021, our GAAP and

net income increased and there was a slight increase in CEO Compensation Actually Paid but a slight decrease in Average Compensation Actually Paid to

Non-CEO

Named Executive Officers. In 2022, GAAP net income and the Compensation Actually Paid decreased while

net income increased. In 2023, our GAAP and

net income declined as compared to 2022 but there was an increase in Compensation Actually Paid. The decline in 2023 GAAP and

net income are not directly correlated to Compensation Actually Paid in 2023 because Compensation Actually Paid was largely driven by the increase to our stock price as illustrated above.

Other Relevant Financial Performance Measures

For fiscal 2023, the following other financial performance measures represented the most important financial performance measures used by us to link the compensation actually paid to our Named Executive Officers to our financial performance:

Financial Performance Measures

Revenue

1-Year Total Shareholder Return

Non-GAAP EPS

Free Cash Flow

Non-GAAP Net Income

For a discussion of how these other financial performance measures impacted the compensation actually paid to our Named Executive Officers during fiscal 2023, please see the “Compensation Discussion and Analysis” beginning on page 44.

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