Advanced Micro Devices, Inc. or Garmin Ltd.: Who Manages SG&A Costs Better?

SG&A Cost Management: AMD vs. Garmin

In the competitive landscape of technology and consumer electronics, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Advanced Micro Devices, Inc. (AMD) and Garmin Ltd. have showcased contrasting strategies in this domain. From 2014 to 2023, AMD's SG&A expenses surged by nearly 293%, reflecting its aggressive growth and expansion strategy. In contrast, Garmin's expenses increased by approximately 94%, indicating a more conservative approach.

AMD's significant rise in SG&A costs, peaking at $2.35 billion in 2023, underscores its investment in marketing and administrative capabilities to capture market share. Meanwhile, Garmin's steady increase, reaching $1.01 billion in the same year, highlights its focus on maintaining operational efficiency. This comparison offers a fascinating insight into how two industry leaders balance growth and cost management, providing valuable lessons for businesses navigating similar challenges.