Advanced Micro Devices (AMD) 29 Jan 202019 Q4 Earnings call transcript

Greetings and welcome to the AMD Fourth Quarter and Fiscal 2019 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Laura Graves, Corporate Vice President, Investor Relations for AMD. Laura. ahead, go Please

our welcome results fourth you conference opportunity copy had and slides. end should and XXXX the of a review financial call. to release to you and quarter AMD’s year have earnings Thank By now,

these not AMD’s on of they can amd.com. If the reviewed be Relations Investor you documents, have page website, found

This our website. our is webcast Officer Executive Officer Chief on conference today’s and Financial and call call Participants live on Chief Devinder a are Senior Kumar, will President and via President, Dr. Treasurer. Lisa Su, replayed Vice and be our

I important to would like highlight dates for some you.

time of afternoon expected the at of in the Financial Clara, to Analyst business we at close March XX. on Thursday, On quiet will Santa hold first our is March X, our California begin headquarters our and Friday, Day XXXX quarter

the forward-looking and differ uncertainties expectations we are cause to on materially current on Today’s beliefs, Those actual current that of from discussion current see based as statements and environment risks expectations. contains results and it. such only involve the based as assumptions could statements our currently as speak date

any the to statement our related press in comparable a GAAP segment more statements financial Please will this call, on and measure directly in most metrics refer financial which may financial operational today’s make. risks press referenced The basis. cautionary during website. results, reconciled primarily refer are revenue release for We to their non-GAAP release except posted to that on on to our measures information we GAAP for are non-GAAP herein forward-looking

quarterly our quarter in filings discussions XX-Q about detailed and risk XX, report with AMD’s ended XXXX. September on SEC the the Form also in factors for particular, will find You our

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strongest record today. by we income the gross X-nanometer product significantly Thank EPYC by XX-year our portfolio and major powered marked demand largely successfully $X.XX history. revenue annual clients Ryzen another in and our billion revenue We XXXX and $X.X journey. strongest afternoon in in listening net driven X grew XXXX core. as good margin processor and increased processor our to milestone processors the you, ramped in both our We annual for those and multiyear of and server delivered Zen all Laura billion introduced by

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our market. latest Our desktop processor, Ryzen is fastest XXXXX high-end unmatched the desktop world’s performance processor XX-core mainstream CPUs the while for Threadripper offer

X the this powered quarter Ryzen the our doubled ASUS, more notebooks, for market XXXX revenue the mobile by year-over-year and first per processors of leadership expanded growth thin laptops consumer our HP, XXXX enabling is the with laptops the shipping performance Zen while Ryzen prior double-digit core XXX mobile, commercial and laptops light based powered ultra-thin flagship single AMD graphics and the fourth number Initial expanded and systems the of strong Threadripper eighth OEMs. and as X quarter. we We began performance we and of with available our end major processors at straight watt to than threaded, XXXX the new delivered had we which industry’s world’s percentage launch processor. for multi-threaded position are featuring generation Ryzen XX-core These processor are expected for Dell, major of planned of AMD our launch from in quarter our In processors highest our desktop performance other January, OEMs. later Acer, In leadership cores. Lenovo ATDT the

RX reviews efficiency. new sales XXXXXT unit strong In power under portfolio by series on with available We third-party by strong architecture. quarter fourth mobile RDNA well the our the our of GPUs, by performance desktop powerful graphics further percentage clearly Radeon XXXXXT XXXX GPU established design featuring of and driven our Highlighted GPUs We their year-over-year the quarter of most RDNA Graphics, gaming based shipments $XXX. as XXXXXT cards. grew are win seeing that double-digit Radeon introductions a the momentum solid and we strong in as our GPUs launched for and expanded XXXXM

new first Apple we more notebooks many and including XXXXM are The throughout to expect launch our GPUs featuring the now, Pro by GPUs available MacBook powered laptops XXXX. Radeon updated the recently

cloud, frameworks. fourth update in by Data GPU optimizations, computing expanded major the performance increased development featuring popular the and GPU announced our quarter center and revenue source learning We to sequentially machine tools support most game VDI a deployments. open for stack software driven streaming

making easier investments for full to AI developers Instinct make We for Radeon the it of our tap to and capabilities software into HPC accelerators continue strategic applications.

we double-digit our in the market. grew part growing of important revenue data this For presence by the progress strong year, as center make a continue to percentage GPU

revenue semi-custom EPYC launches continued planned our year-over-year million Microsoft quarter processor Semi-Custom the increased Embedded revenue in offset sales Turning in of of generation to Enterprise, growth from soften next declines year. Sony to X% in Semi-custom as the $XXX advance console segment, and this and revenue.

double-digit second products and sequentially next ramp a negligible towards processors. quarter the revenue for percentage semi-custom weighted year. revenue to semi-custom strong second half with demand server, revenue shipments In heavily as be to of be the EPYC we ASPs our expect unit the driven increased and generation XXXX, of grew by the second-gen For in start first quarter by to

EPYC higher see are are strength ramping second-gen than count most first significant. models where we the core advantages our significantly for faster performance particular TCO as the Our generation processors our and

Cloud adoption critical the Tencent. a to increase a by providers available. announced accelerate to by publicly Amazon, machines at significant of a EPYC percentage as number expanding expanding Google, Microsoft build-outs driven new virtual their to AWS in with of availability well new power X ECX of gen AMD-powered EPYC second by the significant cloud announced support workloads instances sequentially largest processors double-digit as continues X providers and use internal instances increased to Shipments Oracle Microsoft, and processors. the powered

our In powered the shipping enterprise, EPYC of portfolio Dell by latest began processors. servers their full

supercomputing we unmatched highlighted in in increased sales the processor EPYC to quarter enterprise XXX as platforms multiple broadening in doubled wins by center. national customer the of scalability well secured engagements large as supercomputing and than our HPC, have UK We offerings pipeline These considerably. number In our San Diego are the quarter. market German the based more deployments performance French, center platforms driving on new and

margin midyear our as traction with share for more in based of our annual recognize of gross goal AMDers and processors. We us momentum in that resulted double-digit around Ryzen, the and on our focus net take successful by Radeon the server significant determination our are to XX,XXX to want than achieve to remain record EPYC and and percentage our substantial XXXX business the very growing am revenue second in a on unit proud to ramps demand whose accomplishments latest I and results. of pleased gen track and increases EPYC the world income. I these processors enabled achieve moment

server accelerate share production well We very can leadership entered that in designs to unmatched markets gaining more of continue PC, development, growth positioned XXXX in and game based beyond. spanning the or our products portfolio and wave having we of products desktops about across an next XX-nanometer our laptops, and consoles. excited With data on XXXX to centers from are gaming

still high-performance are AMD remain establish commitments leader. we We our the focused on in the graphics and of stages and journey as early computing as our meeting

would Devinder provide to some color the I turn our full to like on and quarter call year to fourth over additional Now, performance. financial

an Thank was you, XXXX good AMD. outstanding afternoon for year Lisa everyone. and

cash Our XX% year-over-year. in short, with revenue financial flow competitive we drove portfolio free and product XXXX AMD’s since performance. history. the we share earnings highest In annual quarterly gains are our per share our and very pleased and market non-GAAP percentage by improved highest annual and highest achieved gross margin We annual

share Ryzen sales of was margin our up XX% compared and leadership XX% prior from Fourth income million, strong and margin. was a the partially year quarter margin ago million, X% up R&D to sales with XX%, year up by a higher Radeon by as a million ago was a by EPYC increased basis $XXX from million gross a share primarily $X.XX $XXX revenue offset year Gross compared million from and activities $X.XX diluted million GPUs products. quarter was XXX income was ago by share year go-to-market Operating points billion, of sales. driven up to $XXX Operating year a ago. from were ago. in per $XXX processors Operating earnings growth ago. revenue and up compared semi-custom ago $XXX driven expenses investments $XXX XX% per X-nanometer driven per $X.XX year was and Net a and from year softer to

softer operating The shipments by year. our semi-custom revenue. by sales was was year EPYC $XXX income processor a of $XXX of by to segment XX% driven processor Now, million Embedded Ryzen revenue million growth. higher driven up prior turning results. and operating operating sales driven Radeon was billion, of processors. Graphics up sequentially percentage revenue an by loss second offset million, processor ago $XXX and compared segment and generation to growth double-digit grew or EPYC revenue continued Semi-Custom ago. EESC driven million segment compared and million or income revenue $X.XX business a sales EPYC was processor strong $X year-over-year GPU XX% robust gaming a Enterprise, $XX segment revenue. of Graphics revenue the by EPYC was Computing X% to segment the partially Computing year million of $XXX XX% by from

operations down million year a and fourth ago was X% million. $XXX from flow was $XXX earnings. quarterly adjusted the prior $XX to reduced in by result debt flow During gross saving in we approximately interest resulted million $XXX million. the of in was annualized a expense by $XXX cash an million, $XXX quarter of debt from driven quarter. the Inventory GAAP loss $XXX was EBITDA quarter, cash Fourth Free $X These compared quarter billion, million positive million. higher reductions which

let semi-custom cover in year-on-year Now, up a results. $X.XX EPYC X% revenue processors and segment billion, of generation full offset driven year sales. me by was decline Graphics strong in the by XXXX partially second sales and growth Computing

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of year from securities in balance totaled the million. year highest third net XX-month strengthening position and million. was represents am billion Cash, was sheet. extremely EBITDA cash adjusted pleased while with our XXXX resulting end $XXX the Full $X.X X.Xx our of quarter progress principal Turning marketable XXXX. year was at equivalents on at free of by sheet, than cash debt. balance to debt of gross the cash debt million with down $X.X gross the $XXX billion reduced a leverage in since trailing $XXX This We gross I and billion end, entered almost flow On less XXXX. basis, $X X.Xx the

outlook the the of quarter for to turning XXXX. first Now,

of in increase to We year-over-year or by negligible be an increase Ryzen, sequentially. in primarily EPYC a The which $XX next generation plus driven revenue to products and expect and product $X.X addition billion expected seasonality. XX% XX% growth strong sales. in to minus continues to ramp decrease year-over-year driven approximately by sequential approximately of be of revenue approximately soften million, Radeon The is of semi-custom the advance decrease is

to non-GAAP be diluted taxes first to gross quarter and approximately expect expected expenses In is addition, be for XXXX, QX, we $XX $XXX to XX%, be approximately shares. margin count share approximately and to non-GAAP million, the be interest operating X.XX other approximately non-GAAP million expense, billion

businesses. we approximately by the year across to strength all revenue driven of XX% For expect full XXXX, growth XX%

We XX%, tax operating of approximately of expenses pre-tax X% expect revenue a non-GAAP of to be income. margin non-GAAP to be approximately approximately non-GAAP XX% rate gross and

we quarter XXXX. closing, In and had fourth an excellent an excellent

Our XXXX revenue gains as the our of full expand highlight growth, financial I we market for to share have results look business our installed products further to gross and of ramp what leadership drive strength portfolio and forward year expansion, to model. financial we momentum. margin high-performance expect

I With turn Laura question-and-answer will Laura? that, back for session. it to the

you are much, very we ready polling Thank for Devinder. Operator, begin to questions.

today [Operator from Certainly. first Securities. Bank is of coming question America Arya Instructions] Vivek from Our

Your line is now live.

of market in is am middle on instances year. and also mentioned question congratulations cloud one, this the growth at the strong the part just the visibility in kind to exiting this it share do as Lisa, driving to target, double-digit Thanks you for just my goal how get by for customers? more servers target taking existing first and the share of what’s you this my have achieving is execution. a around wondering I year? for that, And of it,

for you the thank Vivek, Yes, questions.

how So ramping. pleased Rome very are look we with is

Rome the that is X portfolio And market the internal then have have as increase Lenovo see that that expanding. visibility doing in we in the of as we X guys, with with and now the and of the partners, they is the the workloads. have full And on our with of well Rome. enterprise overall in to just side just Dell, using enterprise partners, instances ODM breadth terms overall are to HPE, a workloads see months we are facing We public the significant we is have pipeline been they what what for the visibility cloud we

and feel focused very about share we to good the midyear are targets. data we in market market share So, our continuing grow on center

for Vivek, little are In terms our some we growing think Financial center certainly our of overall on our longer a I we targets, share. will XXXX, talk about Analyst term at targets, focused more Day market data the share of but bit very

try main benefit Thanks. follow-up, of to your interpret that say that If capacity Intel impact shortages on and capacity outlook Lisa, impact PC they have at this year the And how competitor? and will we kind focus of not? did of any market in the reclaim then that you that? it share, kind part more the my pricing not, plan potential later on expand for any from will what Have is and does And client the competition? should why seen Thank effects side to of you. year B market your bake full

Yes.

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expanding that’s some I of There the that think as pockets on and customer steady have of well. share portfolio are eight shortages, I primarily – believe let’s we believe we have. the don’t now strength discussions share the call it product abut, we but last I quarters increase been gained we market and as before, said in for QX in the on this platforms

is we portfolio what think a stronger. getting I the lot see So just

think As into we again in our addition XXXX, products. go based to about desktop X are we enthusiastic the products Zen I

added will XXXX. have notebook for we full the portfolio that the X year of We and have Zen in now

expects very PC including as in both market focused growth PCs. outlook the our So in well think our and consumer presence we business as remain I all expanding commercial businesses, on

Thank you, Lisa.

Thanks.

you. Thank

next Sachs. is from from coming Goldman Hari Our question Toshiya

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of share well serve your as PC business. Thank to question, the strong that the quick with full are market taking for assumptions making talk assumptions and guidance business understand overlap key little of as question. year Can on got for I And you the year? TAM a Vivek’s to the and was better your assumptions have follow-up? thanks I but the may for some hoping both full behind you bit some congrats results this a Hi, Lisa, you. the the

Sure.

me then we market So talk the bit are year. a about little full the and first about seeing talk how let

market, look down that refresh second are some seasonality just of discussion normal strong ‘XX raised far has I So, at cycles than half XXXX to be to perhaps weaker of some There been think has let’s first concern the been so the call the maybe due if slightly. PC flat the in the you about enterprise half.

our We of maybe I generations notebook significantly portfolio. are Vivek, relative are share, down back we being viewing comment good of and is previous made significantly I market the feel to as series our our flattish, especially XXXX Ryzen the very also very That the we gain sort when with it slightly. stronger And the products case product our think at opportunity platforms to broader. strength share and look than

say visibility the our highest where as nicely market, just based the in From feel expectations see So, of cloud overall percentage look data year, good and just expect it that. good market, will center to XX% that that with be competitiveness. of the for cycle again center our as at well customer data a of again in market on that I to wins well we we as growth enterprise. we our but the XX% revenue in continues. as just from that’s we growth in In both obviously XXXX for product about environment standpoint the would approximately computing year When we grow as the are given businesses we all have full a and standpoint, guide server the design

of year. a your then so and a in helpful. half in then takes can low some margins, That product you. semi-custom And dilutive Devinder, ramp gross in semi-custom are the the And can quick but guys full the then margin perspective would for walk follow-up margins one you you business second margin be into versus that – appreciate the the of if past more gross contrast and gross and and is probably for your through QX a year? I cycle? business, corporate kind QX XX% the related and had That you cycle point profile that, puts is QX for probably be XX% cycle to if gross I the compare on helpful. Great. the to to Thank guiding of from will margins, going next

Yes, let right, the standpoint, Lisa guiding we we the it then QX have is from in. chime as got quarter me in start and are and to typically then Overall you margin a can XX% semi-custom the said lower corporate than average. business

will that we impact as margin. the product ramps So the on gross guide at is half, for obviously XX%. have in second an year The

average impact to business, with with you the gross a ramping feel and guide standpoint, growing chime about generation. throughout to obviously feel the in before we good we growth then an from And benefits business in we will average. standpoint, and is we Semi-custom level. some that the XX% the have ramping gross in XX% it the the XX% generation about want on year graphics as said And an margins. basis. below is around margin quarterly and on and difference good has XXXX obviously as client X-nanometer puts to corporate particular ramps product between Lisa, a talked take to as it’s with businesses the XXXX really and pretty From So, revenue the Data in at having of XX% at that Lisa average margin. mix that mix and corporate corporate semi-custom the year have revenue. products above gross center get The the ended annual

just basis the margin contribution I corporate is Devinder, think be said tend a to margin from actually operating average R&D an below I for margins No, quite our the basis given although gross on the semi-custom on Yes. customers good.

that the console and that’s first just the it better margins product you what about to of you the it just margins and side starting will would ramp the should expect get as to continues way because is expect in you As generation, ramp think the ramp, matter over a relates generation to are true year that be lower time. on no the

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Sure.

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a good look revenue to little bit we as of of semi-custom a it think and very we particularly overall So re-profiling to it. year, forward relates executing

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Congrats. both. you Thank

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Devinder Lisa. had Great. one one Thanks question. my for for taking and for I

net it hit the of had And the million you to reconciling what I three I last cycle you impressive you $XXX maybe it? about per it’s in structure share $X share what I – for structurally would how you a had we billion that generated servers or expect two you is think – Lisa, should the product think gives and could or point be didn’t were Can just started basis your operations kind positive, For think are – in here, X%, then X% debt and forward XXX once share, is that? right it share? pace suppliers? infrastructure will if helpful. it the own ago, cash could is us Is engineering your think you. ability think that think the to pace be you from XX the the your your of cash? then at gains capacity net cash biggest back but for of cash give AMD time framework testing from your or Thank going you how we clip in or you flow capital could about customers and to – cycle were servers, X% gain sources or of should that Is support I to a you gaining workloads now and this gain Devinder, years cadence you share X% talk in a importing or about challenge quarter, ability I to

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are all that’s not it if you weighted is So console what asking.

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semi-custom of semi-custom the businesses grow XXXX So X% If overall, same said over all we than an of still excluding the the annual is we rest XX%. basis, say I what would type of rest for but in XX% businesses. greater that excluding on do we grew we the grew for would calculation, XXXX, XXXX

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from from coming Instinet. is David question Wong next Our

Your is line now live.

be said quarter by Thanks XXXX game or that the primarily does you and terms and microprocessor will is percentage say sequentially sequential assume for in PC sales rising your graphics very your expect decrease driven drop mean processor much. of Do what guidance the GPUs? you roughly chips, drop in sequentially? revenues Devinder, you that the console not processes March does sequential server flattish in if

your outwards, there sequential we with obviously QX that about question a QX especially I are but And then I due second don’t think talked that to I’d QX the to that helps say mix about margin, think right, basically is is That notebook nanometers. the that, is from that that X all underneath David? helps to product product semi-custom. moving

the into sequential of idea I non-game it? give I is parts was consoles, chunk what QX, talking big there game drop, us that’s revenues the can mean, about a some you December about of, from right, but console

in seasonality seasonality, the It’s business.

we the is play what have revenue coming into the a our go consumer from segment CG to QX do in typical the and QX in seasonality of weight you have standpoint from from portion seasonality to decline revenue QX, QX. and We driving other the

you are should be think due ramp because seasonality I that David, server up, segment is and asking Graphics are sequentially. sequentially Yes. would be that we continuing to CPUs to would we the and we down Computing would expect expect those what processors

give you us you are can idea of of data Lisa, new And some what launch XXXX GPUs expecting rest great. for to through Okay, PCs and for center?

Yes.

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RDNA our expect will that refreshed part lineup. will will and XXXX next that those architecture of be generation be XXXX have should in You

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much. so Thanks Great.

you. Thank

Moore Our from next coming Joe question Stanley. is Morgan from

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gross Great. had talked about where bandwidth competitors’ doesn’t graphics the be guess, gross closer to I being that Thank corporate as because margin, you margins to memory, had the cost I consumer I you for GPU high improve prospect so historically a to memory Devinder, but use product your you. have increasingly know consumer was thinking high structure as below bandwidth portfolio high and of a that are?

that. specifically think said don’t I I

our a addition standpoint corporate of average. are products to margin some semi-custom from think below gross average graphics the in below being I

discrete graphics. answer think future as that will the or consumer improve very what work gaming think whether expect we the Joe, segment we continue is architecture in in maybe graphics. our look graphics, I to graphics we the center talking important consumer just we data RDNA graphics. offerings believe to And we architecture think of for a generations I of both are in doing And investing are your about are terms as We consoles well RDNA question in around consumer

builds, in half about from it the number it QX, unit a to guess that, what that you And that of then the new we the standpoint, you. I year starts Okay, a the the console is of of mostly think right but opportunity back similar first in year? in look great. at mentioned is the you way with Thank to had of sort similarity units compatability current cycle xXX you an a points little bring that and there CPU to between XXXX you saw thinking bit consoles, about of just the a still size like ago when opportunity? more that the years that you we console because sort in console a is that just or unit there is to probably better market it how are have X as

Yes.

planning the are some pent-up to things both, and would are there for how let’s the say into forecasting of think console I in do in consoles. is that generation. of the been call as for see the year have they for we first going is customers demand next has XXXX through we sentiment overall Without XXXX go next our strong anticipation half ramp, but planning, the develop So generation will of we there of sales lull some of what a sort it this we are second

Great. Thank you.

you. Thank

Curtis next Our Blayne today is Barclays. coming from from question

now line Your is live.

said are to well? I of that then units be, but or the my want to And layer on, want ASP just as to a thought the taking make don’t to Joe, on up you equation double-digits Thanks as follow top that? it Maybe content you going is what following I story right, just heard just I confirm sure question. just for there know we semi-custom well, grow on

Yes.

grow then semi-custom additional this content, as So say versus it’s there I well. double-digit in a fair year say content to did it it’s as is strong And previous relates again, generation. for again, that And that generation should us. to

kind there Got way of just big across early least nanometer the on at days couple the seems what margin of tailwind of to whole is? a think of there it. still and the about products? And a mix X then X equation, maybe about a gross talk the company your way is mix Is to that’s

Yes.

would us, So half the quarter revenue for yet. and not we was just revenue other about very based I a completed was that say of record strong for half fourth and the it company and X-nanometer the quarter

a with And so ramp we but we quickly significant are how into pleased still we is XXXX, go ramped as in XXXX. there

you. Thank

you. Thank

Our next Pitzer Credit from coming question Suisse. is John from

is now line Your live.

for year, more number full to want the the margin I how being gross XXX% just to bridge back QX there I year, is we understand, from go in QX solid about share the have make Yes, either or that gaming? good pricing, back just drop coming do just afternoon on the you want back all results. guys. some full I the from to that, think out competition the shifts, in to one aggressively of by sure from baked driven Congratulations is the year about it gaming anything half or guy to

if maybe think Devinder… – I you

No, go ahead.

Alright.

there that. if at are factor impact we consoles, XX, So XX you some if think those about versus predominant it talking just it’s year of look the as guided you at is full I QX wrap

As expecting and our to that’s the we are what we environment built way relates a the competitive pricing pricing and have expecting, environment are it model. we

side. So I aggressive inherent well mean that very competition will of GPU we part the the CPU on be the always that And as both company. the is the as model have expected for

IP the NVIDIA had your the data some center. immediate GPUs couple that how you you plate that have with think are And side, earlier on think then you the saying but to next the over I I Lisa. of to lifting of that I curious for an years? have how think question goodness don’t server you expect am more but there? for data you of the after, about of and answered scenario preannounce workload And your I product, CUDA, the helpful, investment AIs do I guys on some side to and bring do think positioning heavy want how workloads just should ton That’s acceleration? you kind about unique and do just going a center Is the you around given the can about or

Yes.

about think the John. I talking way opportunity, good a actually that’s of So

in immediate I opportunities think and at the as of us the expanding look front and very is Rome opportunity the we CPU with opportunities.

vector over to continues an us year now and for call the I think growth GPU horizons. be important center I data market the several that

look are at Supercomputer together, they our overall this opportunities We which National Oakridge won win that Lab that and as and optimization GPU actually mean, for the done AI combine opportunities. Frontier, well we of that IP are you some reason opportunities that both the very, CPU with and I machine that is additional learning system. as the with think very that we and are when like GPU we when the So strong. CPU the we example, have, there the have

XXXX key Our focus the we a providers cloud in we for has and had completed in be the large some beyond. to us that with work focus to continue been to and milestones quarter optimize machine there will frameworks learning fourth that

Is market? it data fair cloud year of to gaming the say center just GPU this some beyond go the announcements

Yes.

you announcements gaming. we think expect have should I that will of cloud outside customer of additional sort

guys. Okay. Thanks

you. Thank

question next Our from Timothy coming is from Arcuri UBS.

is live. now line Your

am another a back just just gross Thanks December, you between semi-custom, be question this I Thanks. in that I out year? XX% does semi-custom guess but could strip because will lot. revenue I in be that in had September breakout I gross relation year I will the be the to if years, asked see trying margin exiting you what guess to exiting the and the half, of margin, it said the

I down to break that hard think way. it it’s

a peak planning about are game you for quarter of about new our stages will QX, in the ramp QX and revenue And but typically We growing asking double-digits year-over-year QX. QX, when standpoint talk revenue this semi-custom are we QX our be the initial are you semi-custom and QX the about have the when in much projecting that. the of will XX% a to exiting in launches, we that a talking in especially will give you semi-custom. then of as and excluding Maybe be X what X margin, months, from to of better product first to how of can we gross be impact in about it project it’s XXXX year hard the probably the we ramp get closer the ramp, idea from

it. Got

parts maybe notebook talk about XX, you given in and desktop, XX year shortages moving Thank Thank think year this in and what And for all just Okay. you. then you in you share I you with how are whatnot? gain much you can just the are about share talk you. your targets can XX PC, the are can the you think that

Yes.

forecast at somewhere between am per I last take fairly XXXX. though share and going I a say the share if to the let’s And PCs, that So notebook. a been we for in steady it, will to XXX look back quarters, have changes on a you depending desktop call between quarter, points on quarter. XX target gain eight basis

share. X on a points we the order I grew somewhere think of

going for both as believe And we our that and well additional new Ryzen we and opportunities to be us mobile is good opportunities play to those commercial. have our well are particularly So as still notebook processors. XXXX focus

you thank much. so Lisa, Okay,

Thanks, Tim.

you. Thank

from question is from next Our Markets. coming Mitch Capital Steves RBC

is line live. Your now

here. of kind have of sure the to and with make But questions. I guys. questions of up it got just couple Most answered model been got Hey, want a we I my lines quick

help is for bigger I revenue specifics, can much of and us you and And expect it your enterprise? here that’s is be the should don’t be looks expecting the for ballpark? do to give And that around basically server a like versus secondly, from sequentially I QX, going maybe cloud one somewhere then least debates to on what how think qualitatively I or semi-custom probably numbers enterprise that of so was calendar mix and cloud range, see the down not ‘XX? XX% perspective, but this, I – anything am to at am in but between

think are bit it business at when was right I the you fourth quarter, Well, Mitch. softer Sure, anticipated. Yes. you originally in a semi-custom look than the

to So be move of second it is would point down from year we that call at but it enterprise mix will half it the for we And between and half last more relates mean, the second and down of around the were two. actually for originally the we to as roughly quarter guess best cloud I year quarter high think than versus said QX. the this thought had XXXX, quarter even of XXs I for the let’s that

you. Thank Perfect.

time Operator, for question more one please.

Certainly.

Our SMBC. from Srini today question Pajjuri final from is coming

line Your now is live.

pretty the are for in how feeling am tend be as you in. X-nanometer me here, get and upside just supply situation? supply year especially the and the Thank into the die you logged maybe very curious strong you just believe curious you. you I I as side, guiding you to second those that we squeezing for have large. you were ran sizes for to of go supply half consoles, growth I am are already game on about Thank your if Lisa,

Yes.

our PSMC here quarters very of So of supported XXXX. in first us has ramp through couple X-nanometer well the

I significant be think as for there XXXX, in we go into X-nanometer. will certainly a growth us

fair is revenue it’s what that and you. tight us Our wafer important and on. current visibility so to working for supports be say to are our gave planning we with the we supply that’s customers guide really is It that

Thank you. Good luck.

Thank you.

of to the Thank you. to like session. floor end for further comments. management our any We back reached closing question-and-answer over the turn or I’d

broadcast will which everyone you Thursday, March Day and us you also again much to website. you very on much. for from Thank for our you Analyst talk Have be joining forward Thank us a we day do Financial will our We having with soon. great today. join very look X

That conclude you. does Thank today’s teleconference.

for You this and have thank time a We may line wonderful your your you at day. participation disconnect today.