AMD vs Intel: Research and Development (R&D) Expenses

Data analytic. Pexels Images.

This article compares the research and development (R&D) spending of Advanced Micro Devices (AMD) and Intel Corporation.

AMD operates as a fabless semiconductor company, designing its own chips while outsourcing manufacturing entirely to third-party foundries — primarily TSMC — allowing it to remain capital-light and agile in product development.

Intel, by contrast, has historically operated as an integrated device manufacturer (IDM), designing and fabricating its own chips through an extensive global network of proprietary fabs, a model that demands substantial capital investment but offers greater control over manufacturing processes.

Despite their distinct business models, both AMD and Intel have consistently invested heavily in research and development, competing to advance leadership in microchip design, high-performance computing, and graphics technologies.

Let’s look at both companies’ R&D expenditures.

Investors looking for other statistics of AMD and Intel may find more resources on these pages:

Sales and Profit

• AMD data center and gaming revenue,
• AMD revenue by country: U.S., Japan, China, Europe, Taiwan, etc.,
• AMD profit margin breakdown by segment,

Other Comparison

• TSMC vs Samsung: R&D budget,
• TSMC vs Intel: R&D spending,
• AMD vs Intel: profit margin,
• AMD vs Nvidia: profit margin,

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Definitions Of Ratio

To help readers understand the content better, the following terms and glossaries have been provided.

R&D to Revenue Ratio: The R&D to revenue ratio is a financial metric measuring the proportion of a company’s revenue that is spent on research and development (R&D).

It is calculated by dividing the total R&D expenditures by the total revenue, usually expressed as a percentage. This ratio helps investors and analysts understand how much a company is investing in innovation and future growth relative to its sales.

The formula for the R&D to revenue ratio is:

\[\text{R&D to Revenue Ratio} = \left( \frac{\text{R&D Expenditures}}{\text{Total Revenue}} \right) \times 100\%\]

A higher R&D to revenue ratio indicates a stronger commitment to innovation and development, which can be crucial for long-term growth and competitiveness.

R&D to Gross Profit Ratio: The R&D to gross profit ratio is a financial metric measuring the proportion of a company’s gross profit that is spent on research and development (R&D).

This ratio helps investors and analysts evaluate how much of a company’s gross profit is being reinvested into innovation and future growth.

The formula for the R&D to gross profit ratio is:

\[\text{R&D to Gross Profit Ratio} = \left( \frac{\text{R&D Expenditures}}{\text{Gross Profit}} \right) \times 100\%\]

A higher R&D to gross profit ratio indicates a greater investment in innovation relative to the company’s profitability, which can be a sign of a commitment to long-term growth and competitiveness.

R&D to Operating Expenses Ratio: The R&D to operating expenses ratio is a financial metric measuring the proportion of a company’s operating expenses that are spent on research and development (R&D).

This ratio helps evaluate how much of the company’s total expenses are dedicated to innovation and future growth efforts.

The formula for the R&D to operating expenses ratio is:

\[\text{R&D to Operating Expenses Ratio} = \left( \frac{\text{R&D Expenditures}}{\text{Total Operating Expenses}} \right) \times 100\%\]

A higher R&D to operating expenses ratio indicates a greater commitment to innovation relative to the company’s overall spending, which can be a positive indicator of future growth potential. Comparing this ratio with industry peers can provide additional insights into a company’s investment in research and development.

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Insight & Summary of AMD and Intel’s R&D Comparison

The following analysis consolidates the trends observed for AMD and Intel’s research and development comparison for the 2019–2025 period.

• AMD’s R&D spending grew aggressively, rising more than fivefold from $1.5 billion in 2019 to over $8 billion in 2025, with consistent double-digit growth rates across most years.

• Intel, while maintaining far higher absolute spending — peaking above $17 billion — saw stagnation and even contraction in later years, reflecting a less dynamic trajectory.

• Relative to revenue, Intel consistently allocated a larger share to R&D, with ratios climbing above 30% in 2023–2024, compared to AMD’s ~20–26%.

• However, AMD’s R&D intensity relative to gross profit remained structurally higher, often exceeding 45%, signaling a leaner model where innovation is tightly linked to profitability.

• Both companies devoted substantial portions of operating expenses to R&D, with Intel trending higher at ~65–74% versus AMD’s ~53–69%. Yet Intel’s efficiency weakened as R&D consumed up to 95% of gross profit in 2024, underscoring margin pressure, while AMD maintained a more balanced profile.

• In summary, AMD demonstrates rapid scaling of R&D investment with disciplined intensity, while Intel’s larger but less efficient spending reflects structural challenges. The contrast highlights AMD’s innovation-driven growth momentum versus Intel’s struggle to translate massive R&D outlays into sustained profitability.

The table below combines all key Research and Development metrics into a single view for the latest three fiscal years.

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AMD Vs Intel in R&D Spending

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AMD Vs Intel in R&D Growth

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AMD Vs Intel in R&D to Revenue Ratio

You can find the definition of the R&D to revenue ratio here: R&D To Revenue Ratio.

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AMD Vs Intel in R&D to Gross Profit Ratio

You can find the definition of the R&D to gross profit ratio here: R&D To Gross Profit Ratio.

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AMD Vs Intel in R&D to Operating Expenses (OpEx) Ratio

You can find the definition of the R&D to OPEX ratio here: R&D To Operating Expenses Ratio.

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References and Credits

1. All financial figures presented in this article were obtained and referenced from AMD and Intel’s annual reports published in the company’s investors relation pages: AMD Financial Reports and Intel Investor Relations.

2. Pexels Images.

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Disclosure

References and examples such as tables, charts, and diagrams are constantly reviewed to avoid errors, but we cannot warrant the total correctness of all content.

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