Advanced Micro Devices (AMD) 29 Apr 202020 Q1 Earnings call transcript

Greetings, and welcome to the AMD First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded.

It’s now my pleasure to introduce Ruth Cotter, Senior Vice President, Worldwide Market, Human Resources and Investor Relations. Ruth, please go ahead.

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

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

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

we begin note virtual please May the today, Meeting will that a Shareholder Before Xth our be event as Thursday, amd.com. Annual accessible from held on of

May be time of the several the of business Decisions begin including expected XX. will Wall Street XXth June. second Thursday, to close Strategic attending quarter XXXX And second also is at our quiet quarter, on events during the Bernstein the We on Friday virtual Conference

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

to release non-GAAP today’s to most will in refer reconciled this amd.com. which for call, directly except and measure metrics We primarily comparable on financial press segment on GAAP their financial measures basis. are financial referenced during a revenue GAAP are results, operational posted The non-GAAP

in risks related to that Please make. we statements our release on the information any refer press to cautionary for statement forward-looking more may

and Form December XXXX. for our Annual factors on the year filings discussions detailed find in You XX-K will also risk our Reports in with AMD’s SEC particular, ended XX, the about

hand Now I’d like Lisa. to Lisa? the call with to over that,

those all Ruth, in to today. you, and good afternoon listening Thank

our to wanted comments quarterly response results, to COVID-XX. our covering I some addressing provide Before

to has everyday. which and want toll the to changed that and the lines breadth has at professionals taken has The healthcare since on been serving earnings the our workers I speed last the I world. countless COVID-XX call on thank want First, front essential the world recognize pandemic staggering.

AMD, to employees. protect safety been our and of priority our At the first has health

our worldwide from transitioned ensuring reliably XX,XXX the supplying depend vast to maintain than customers products their more working focus employees we on. home, and majority businesses We of our while with the services have on

We’re the personal work, to and of forefront financial how also pandemic technology we proud the connect. of shop protective call these powering to at home we equipment More ever, providing communities has research. essential learn, components and we the providing medical supporting And through technology and than the technologies. our donations accelerate many placed be are

increased Ryzen, backdrop, quarter EPYC Revenue Against first years. in in we and eight demand year-over-year and revenue for to as Radeon performed that billion, the record $X.XX X XX% well nanometer highest drove processors our quarter. first margin gross

with pleased shifts of and adopted we our execution operations chain I’m geographic supply in caused as disruption addressed market quarter, navigate pockets our quickly demand COVID-XX. and to by global the

Computing segment. our Graphics to Turning and

$X.XX to Ryzen by billion, XX% adoption. driven and segment quarter First year-over-year Radeon revenue processor increased increased

COVID-XX based that impacted in softness situation first the quarter. sales some saw We PC-related on in the China

rest retail quarter. in PC online system was China. offsetting and the channel strong, in of of China the at were component were world much relatively locations for vendors, as weaker-than-expected strong the softness closed offline demand sales both were many demand While the across

shipments and Ryzen Client increases ASP. in year-over-year, processor strong double-digit revenue resulted as grew demand significant unit in significantly percentage processor

gained we market believe we share straight XXth for result, client a unit quarter. the As

many to both top top premium share processor than Ryzen sales lists of families processor XX% continue In were of desktop, prior overall generation latest which more and XXXX demand for and bestseller at XXXX retailer strong, have global our e-tailers. Ryzen

strong of a for percentage first the by notebook ramp In a double-digit previous and Ryzen sustained processor our by We unit demand offerings for shipments set the wins. revenue, generation year-over-year. increased quarterly mobile driven record mobile, design XXXX

Initial to for based demand, consumer their reviews battery ultra-thin new demonstrated and life that notebooks. leadership XXXX notebooks strong performance Ryzen on processors and featuring launched our gaming

We also deployments multiple launched ThinkPads Ryzen processors. the new commercial by class and Lenovo as gained announced in winning XXXX HP mobile momentum market, powered latest commercial ProBooks large-scale our

XXX track other as year, growth HP, OEMs to and We are this more are consumer on expected commercial Lenovo coming launch quarters. notebooks and ASUS, over accelerate than Dell, mobile new Acer, Ryzen-powered to the our

year-over-year, series, quarter graphics our Radeon sales graphics, unit generation solid by of and driven based X GPUs. revenue RX first increased cards In and GPUs. series and sales shipments percentage RX RDNA XXX both notebook channel on XXXX demand a desktop Radeon largely nanometer previous double-digit by for grew both Desktop

In new Radeon mobile, RDNA drove gaming offerings. other notebooks, for MacBook mobile our platforms powered demand by mix, mobile latest XXXXM including customers as the notebooks their transition our and Pro to GPUs, Apple richer a

progress GPUs to RDNA well. our of continues Development to

on our current are to GPUs this launch We gaming offerings. increase track performance year, XX% next-generation a compared watt with to later our per

in center, tailor introduced to virtual partitioned GPUs. MIXX our the GPU their same capability machines, a for new the technology optimized data customers for Instinct visualization way GPU specific meet Microsoft CPUs, Microsoft using needs is they of to the Radeon partition In to by the workload. multi-core first allowing our differentiated the Azure workloads, powered time virtualization

Turning semi-custom of increase revenue. to and offset our Enterprise, significant server XX% than $XXX Semi-Custom a million revenue year-over-year, more in lower Embedded as Revenue decreased segment.

in product launches. semi-custom Sony in quarter, Microsoft, inventory was expected, next-generation console As revenue the of reduced both as negligible and advance

Xbox production in increase the second-half year, holiday the the the and We ramp and of expect consoles. semi-custom X of to towards quarter new PlayStation Series launches we X as to support be weighted the second heavily revenue

double-digit more continue deployments. gaining particular In server, with new enterprise by strength introducing and accelerating cloud customers. percentage HPC momentum tripled and We unit shipments a as grew year-over-year, we across than and instances providers, current cloud, sequentially saw

by VMs out rolling AMD Microsoft Radeon includes an general also new announced all highlighted IBM and powered Google multiple processors, EPYC offerings all offering Google by that virtual and purpose GPUs. second-generation Azure, launching Instinct desktop Microsoft

working from growing number to the of providers their from rising cloud address Several users and accelerated infrastructure schooling demand home. deployments

of one instance, less Xnd collaboration in was cloud in to their XX than our the to demand customers days For for XX,XXX Gen services. surge EPYC servers support able deploy large

the and enterprise, Gen our Xnd expanded In leadership we that with EPYC workloads. portfolio advanced processors performance database processor our expand high-frequency modeling, new to hyper-converged

and EPYC in With now these socket our highest Gen both includes processors family offerings, Xnd core the per per industry. performance new the performance processor

is We more of than and to supercomputer, in GPUs XXXX. computing early when Radeon continue it to two HPC, National EPYC Livermore CPUs is in next-generation power Lawrence expected performance AMD deliver by exaflops winning Instinct El highlighted Capitan which selected announcing they Laboratories, deployed their

supercomputing proud high-performance graphics incredibly clearly and systems three exclusively software CPUs on are computing publicly and GPUs, technologies capabilities. U.S. will computing announced the of AMD We exascale use and positioning based as our the AMD that two leader exascale

In remain and growth closing, our long-term unchanged. strategy drivers

Although near-term to uncertainties environment, situation. well-positioned navigate there this are some in we through the demand are

financial We very and data across and foundation well portfolio is positioned our have the center product a solid markets. PC, gaming

macroeconomic strong, indicators demand infrastructure the across depending softness of markets are the in we in commercial, some how While expect year conditions education second-half overall data on consumer and center evolve. demand

strong to the in CPUs next-generation the and based of We revenue and XXXX can and strength X portfolio remain serve. RDNA of markets and on on late expansion to track Zen growth GPUs launch year product we our we deliver believe our margin diversity of another

additional like I’d the Now, over first some to turn to Devinder to financial our call quarter provide on color performance. Devinder?

COVID-XX. we quarter good We of well as and navigated a first in the performed Lisa, impact you, as of a result ongoing everyone. afternoon, challenging environment Thank the

was quarter Radeon billion, driven products, processors a $X.XX sales. sales from semi-custom partially ago down quarter. the and Ryzen strong and of year growth offset was by and prior XX% First revenue XX% from up EPYC Year-over-year lower by

expenses and was year driven sales. points million XX%, and were compared margin processor up increase go-to-market due $XXX in to Gross from basis a to XXX year $XXX primarily million, Ryzen ago, activities. R&D EPYC by ago, investments Operating a

to year $XXX XX%, to share per was operating was diluted ago up Ryzen X% $XXX growth year a Net to per sales, margin ago. share was compared income driven and EPYC a by a income of year processor ago. while compared $X.XX million million, per from revenue million, as a million and increased $XXX and greater ago, a from percentage Operating share, $X.XX up $XX year earnings

revenue Now income revenue, growth. sales turning to $X.XX billion, Computing by $XX revenue. Ryzen segment XX% the to compared million, up XX% channel was operating of processor year-over-year, higher or business by driven driven Graphics year ago, million Graphics and significantly segment segment was $XXX product results. Radeon Computing and a and

growth. EESC the income in $XX million included offset and benefit million semi-custom from game. had Enterprise, in segment loss Embedded of partially a XX% down was $XX a year sales, to expected to data operating the million $XXX million, million, strong which center by ago, the a compared of revenue decline $XXX licensing prior $XX year, due of segment Semi-Custom

Turning billion. Cash, equivalents balance marketable and securities to $X.X totaled the cash sheet.

from In from draw revolving addition, line prior up precautionary $XXX billion, we the million $X.X early in our was the $XXX credit. April, quarter. step down million took of to Inventory X%

leverage first quarter, flow million the million, operations On a negative times. trailing improvement $XXX $XX in year. Free was was from of prior from of the $X.X adjusted $XXX resulting X.X a flow in an Cash of ago. year billion, $XXX EBITDA cash gross XX-month negative basis, from million million was improvement an

the for outlook quarter XXXX. on is customer current second environment contemplates signals. demand Today’s the based and the to of turn me COVID-XX expectations current Let outlook and

year-over-year billion, to revenue or of expect plus XX% sequentially. increase approximately an We X% million, be approximately approximately $XXX of minus an $X.XX increase and

be and expected is The driven by growth sales. EPYC The to sequential EPYC processor and in increase sales. is semi-custom processor year-over-year driven increase strong primarily by Ryzen

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

second-half or expect approximately demand annual year, XXXX, full-year expectations of of we minus percentage plus X of the the revenue growth COVID-XX-related weaker points. the For consumer despite in XX%,

gross we XX% addition, operating prior of to margin XX% be be non-GAAP from approximately non-GAAP to unchanged revenue. approximately guidance and expenses expect In

unchanged demand navigate COVID-XX, has we strength the the with the of is demonstrate our impact In our balance of environment. well-positioned closing, and our our near-term to are first today’s strength some long-term Notwithstanding while more our quarter results competitive the challenging model. business market strategy and products sheet environment become of uncertainties, given

to also their I opportunity As times. I thank focus and take like employees for these extraordinary finish, all our in this flexibility, to would dedication,

back it to turn Ruth question-and-answer for I’ll the that, session. With Ruth?

And, please? could audience operator, Devinder. the you, poll if for questions, you Thank

a from coming from is be today first conducting Thank Ramsay session. you. We’ll question-and-answer Matt question Instructions] Our now [Operator Cowen.

Your line live. now is

interesting server the Lisa, considering afternoon, I is And the everyone start business. couple to just you questions which least, results a at you. I Thank quarter wanted everybody. well, where do the a bit with them. guess, Good they’ve of the at how printed were times – you is, been. below, one I of hope modeled AMD doing on I where had in that EESC

you bit EPYC tracking talk set target the of could a towards you about maybe So for is how sort guys had that second feel quarter? XX% the you business

– going And most of driven to I by guidance, driven I upside noticed sequentially in to Devinder’s – EPYC. be going upside comments is guess, the on is the quarter June some be

tracking that? against So you how are

this more then be I year little know. case, know still about timing still keep getting let the I is, Day. Thanks. you Analyst piece us And the And questions And more Milan, at just guys the that reiterated of the if last that’s would and

Thank Matt. question. the and appreciate Absolutely, Yes. I you

we progress our are look, in server the with So very pleased business.

a acceleration a look that number quarter. the sort things went in finished if just of quarter, business see of cloud What you the there as that saw to of at happen. were nice the actually progress the we saw we’ve quarter think, we first we I key in the wanted we we made, through very

second think, go as we of the the I business. there’s an ramp quarter, into server additional significant

expect we go to of continue next so, to as these couple share we quarters. through gain And

to ask there’s and forward center, obviously, it’s lot accelerate takes. our the seeing us to Certainly, I data of seen to continuing the data environment, positive our of But a we’re as some And we’ve relates to some think, server business. look we of current for our what customers it center market. deployments. ramp largest from puts COVID-XX

Milan. And end you be expecting are this that launching about year. at think asked to yes, the I we of

you. Thank it. Got

to PC wanted Just business. switch into the quickly

China China. to the was weakness that And of quarter? business. both me strength on to of I anyway economy One versus could out the stood was the the and heard that the side you. in the improve – imagine graphics things PC weakness quantify PC prepared in from commentary your in that the you – restarting Thank contrast commentary script on on the Have into help business about start those in seen globally in there’s between China. some some we’ve that? you trends AIB If the second

Sure.

So, well. the pretty up PC business has actually held

if PC demand of as some PC in the and in saw months the in the China business so weakness We So March. benefit the did of quarter, business some towards of channel look – we quarter. the of sort early the at business, – saw acceleration some rest China world end see of from February was offline in some that shutdown We in channels. first the the in actually get the we primarily

April. we’ve general the second first relatively on notebook we’re And of preference strong based that Now, in quarter this actually desktops accelerated around pickup with business And of is the sequentially we and have in what is, PC month framework. notebook desktop gone the through sort in the just versus seeing lower quarter seen demand. as the

So business. are the the dynamics PC those for key

much. very you Thank

Thanks, Matt.

and as and a one to ask queue. the to Ladies gentlemen, return you. follow-up please one Thank reminder, question

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

is line Your now live.

Thank Great. you.

seem and your if the new You full-year a few but visibility. OEM guys bunch have one second-half? thinking don’t into through of customers designs, guidance. giving talk kind about Obviously, just companies you And guys have wonder to I are of could visibility how a us the you sockets of new you’re

So just on you little in forecasting thinking beyond what how the are about visibility more have – bit maybe color you that a QX?

Yes. Joe. Sure,

go is, of of – sort terms of the lot that a a drivers we The the So, good we just visibility, of in understand have have into we look, business that, we lot there’s our about questions year. we second-half look as way visibility do positives of market at too.

data We on with and Board. coming in the ramping I center market of positive. a think is that customers a platforms of have number our progress number see that the we

So as a we this we go us, see that through year. as positive for

There’s for what one that the anticipation It’s change the from of there’s we just our see Console largest gaming as relates view, around no year. think, launches, positive it a is in to of standpoint, I lots consoles. of given today. the us. And COVID-XX

our the at look guide. we you as have range, Now, the increased range of

question mark my of of sort kind the the And mind shape the PC biggest is sort year. of this in market of

actually particularly I mentioned As little earlier, a notebook the first-half the on looks bit expected, stronger side. than

weakness consumer in We some potentially to are the second-half spending. expecting due

the the be sort You But mean, one home the the the then there I two from strong have from work view pull there. of that is in macro trends. a a with also year. is, the are will weaker second-half – two of standpoint, forces there’s

market. in the So that’s PC our to what the variance primary happens is model

portfolio And PCs little gain year that is good the a the be may bit the portfolio. will I we’ve than that had. pleased though, we’re originally expected. market we have say, to as we opportunity ever have our the notebook strongest the share mean, market throughout with very underneath weaker I even trends, a in

the the to see the plays give of that’s reason puts So out. try and year takes the course, for guidance we’ll to and, how

gaming new Analyst before data to you cloud workload products And know launch? been And in business Can terms you CDNA That’s we addressing Day that workloads penetration about talked how a you’ve the far, whatnot? is of lot and the second-half. that you. helpful. then Thank center and newer progressing the about talk GPU, so I in get the about the of

Yes.

an data is center the important GPU strategic business. So business

small CPU it’s compared relatively business. still size, center In data the to terms of

progress good making to in overall for has the one year continue in through of progress us number go one Cloud workloads. good are a gaming is a set. – We see product that as with we that been we this current opportunity and

is Azure, wins Microsoft then overall good the be instance machine frameworks talked well machine for to capabilities. and HPC number focus going the architecture, on area VDI we’ve us, that continued be about And – launched We that based improving important a also learning on that strategic we us. of as CDNA we have we just feel will are our as for with workload and which which a an learning the

workloads we’re the think are those So we an for key that forward. us I after. going it’s do And a – important it’s business as go

Thank you.

America from of The Arya you. Vivek question next coming Securities. Bank is Thank from

live. is line now Your

taking EPYC for Lisa, for question. one, wanted your to to you my I business. back Thank go first server my just

cloud mix units very in appears of heavy. strong very QX, was but it the that kind So

are So we some wondering we if perhaps should could sense I used of than you ASPs was just us were server forward? about think ASPs give to seeing. lower going how

for is you you Because And year digestion expected competitors I you for versus sales importantly, some that capacity server said days think cloud like? of XX in back-half. taught if kind what of they of that how this ago, the think your looking

was some ASP business just your and year? hoping you server just this overall I to for color of get So around more thought what

Sure, Vivek. Yes.

the with – being and towards healthy. the the correct. the have was lower. quarter mix impact in is very that first are that ASPs So a case, There That cloud ASPs did an shift

the think the of it’s the our business plus how model. evolves, business standpoint So, minus from I within of or

And new days strong. not but would of ramping so of cloud is terms I positive. In view as we we will capacity, demand on say be way ago, see the really see that we it’s it believe and where being versus putting similar. platforms we just pretty the XX is, What more a

continued in second the here look first and of to we first at grow our quarter the month the to grow, When enterprise of grow sort We adoption quarter. enterprise, well. pipeline it’s continue in continue have and strong to as in

We business by the our to the do more of be business expect begin SMB at a business piece never large type COVID-XX. perhaps But sort of of transactional was impacted that may with.

So we focus And it business. us. to feel the about very be strategic for good server continues a

go as with partners our the I are closer the of and we through think process getting our volumes. relationships of customers ramping sort

And so us to strong growth it driver on year-over-year as view basis. continue a a we for

then for margins. on Devinder maybe gross Very helpful. And a follow-up

will you some of or percent but margin. So XX%. first is XX-ish gross either that recall, semi-custom more off that the more said towards second-half on QX year, weighted, your think, but Devinder, suggests tracking pressure target And I kind I for Lisa be

So I gross just margins should you we the takes through all puts of the hoping us was expecting? could and given think Thank walk you. about back-half, how you mix are that in

Yes. Thanks, Vivek.

and than as key I but the strength corporate in by has are lower for center as said, they takes, puts ramp the data you continued think you offset observed semi-custom, which the the margins average, revenue.

than brands in gross impact does average. semi-custom corporate and So lower margin that back-half, the being the

referenced, ramp But guided deliver data the and for the higher as the strength, than us XXXX as corporate that for center margin are data to center margins business, average offset in center business. that significantly Lisa we are with has the help data just pleased we XX% And gross XXXX. the

Yes. that. to add can Maybe, I just Vivek,

Sure.

as addition data mix console the for see to in we Devinder at expect XX%. the that’s margins year. So mentioned, the reason And the improve center that also to the go full-year guide through we gross

a very is very year. lower we the first happens what our and to the the margin quarter ramp and as little for through – in consoles, first second usually, go bit continues starts is ramp so the quarter So

Okay. Thanks much. very

you. Thank

from from Our next today Mark is coming Lipacis question Jefferies.

is line now live. Your

taking for Thanks my Hi. questions.

progress the is going margin an go notebook a it between side? faster? a and impact client like Can if side HP split but play there the just presence making historically the grow on what question roughly how And the consumer first commercial does had gross between I is question. with on guess, has the first you consumer ThinkPad AMD side, forward? to That’s like on Thanks. side? us – it – the and commercial And the wins. on like give faster does on sense how sounds you’re continue Does the commercial the than design commercial great good that side, consumer On

Mark. Yes,

our has be nicely, we’ve much still commercial. So but to Commercial made does weighted. PC in business consumer tend grown consumer progress I more mean, weighted. it’s

as We expect to a go year. to share through commercial gain we continue this

that I certainly for things there’s positive gross As margins. the margins. that think, the PC affect commercial happens, gross weight two of margins in Heavier PC overall is

be think, the think expect pieces mix and I and lower level consumer the on other to for continue a as year that lots of driver are dynamics. in notebooks us strong we I go through education be mix, will overall, our good, versus this being work is the strong But so there confidence and we mix. should commercial that growth in we tends to

were a the would And indicated to helpful. cloud what internal server in extent own rank a the cloud HPC, forward? your expect instances versus wondered work not – on side, EPYC give if on nicely that cloud split then if growing of guys Great. drive by And enterprise order? that versus cloud you the deployed field you is being percentage Thank instances at what I versus you sense like can That’s you. look us internally also? versus to today, X? going Our on had

Mark. Sure,

cloud that cloud acceleration at to some the I our acceleration look when some internal workloads of you instances, at customers. our cloud our I top cloud referred was say would of – So of

in get GCP that terms announced the think announced grown. external of I is IBM where that’s has the an platform. Microsoft – numbers platform, So well additional instances platforms. visibility. usage area more Cloud we as for as actually We We

we’ve that cloud companies. cloud instances internal see has out – the will You the deployment of over But so. of the roll much next around seen been quarter the more growth or

it it very, HPC. We’ve very HPC. more well And towards is done then to relates as weighted in enterprise, heavily

enterprise some pretty technology April. for SKUs here well sectors. just were applications about as and excited financial in new high-frequency launched our sector, of large We’re as suited They’re actually the that well very

a the growing business. for enterprise key focus those pieces that’s other of of terms in so us And

Thank you.

you. Thank

Bernstein Our coming Stacy from Research. from today next question Rasgon is

is Your line live. now

Hi, guys, taking questions. thanks for my

shift on a mostly understand cloud First, I all cloud guess, the why I a again, business, I I harp big your mix along. towards drive will sequentially. server bit HP down been little has mix don’t quite mean,

sudden why ASPs So all is a that of down? driving

And what that I do could I in did as sequentially? you CPU context, guess, digits. Like center double give know total revenues And you the any what of up were in GPU really units color were any maybe helpful? percentage data plus a on of quarter? if said revenues that, that’d be

Sure.

a we significant or the did in that, So But cloud. I had have QX positive say QX cloud to significant would mix cloud in improvement mix. growth

So shift the talked that that of was about. ASP we sort

data And this relates were high-teens center we question, overall, it As had one Stacy? in other the you to quarter.

I did said revenues across do what double-digit… sequentially

yes, were up sequentially. also Yes, so revenues yes. Oh,

Okay.

as revenues Not but as up Yep. units, much sequentially. were

Thank it. Got you.

my share I to little a talk follow-up, So again, want target. bit about the

growth quarter. and magnitude, just even be I middle So quarter. year. I Intel’s that’s this if take revenue doesn’t your take this data in for X% give If you’d quarter, like next revenue the guiding I share. just EESC XX% the I But double on revenue know know or – take you’re you’d going by I to mean, And share feel of just it given about the I entire said center

Like should how about that of about be how pushed thinking you XX% we getting it the wrong? middle out? in Is this that just year? feeling Are we guide are that? defining So

Yes.

of the view share it units socket of sort of – way we is about XX a and million we X That’s the expect target, year very units much and servers. million a the dual quarter. So in socket terms about single define

on look where we is today, is that. From about to our… million units. to actually share be XX% So QX X.X we look track

about QX? That’s

Yes. QX seen. quarter that we’ve strongest is actually backlog our

that’s today. think I So, our current visibility

more, Isn’t though, Is million the comp? an before that playing whereas in even market weren’t you gave that you’re when target $XX total million or the comp, you like total at given playing more $XX maybe appropriate is target now right? number, in

go the back think, I to define we on not Well, again, how target.

define appropriate I define target that’s how you I way and given the think, I’ve an we to think target. the

comps at I significant is early, this revenue point. not think is would and say our very, of a very exposure the I part

you, Got guys. it. Thank

Thank you.

Thank coming Goldman you. The Hari from next question from Toshiya Sachs. is

Your live. is now line

up we and to Hi. take the the contrast put guide. your of bit outcomes I $XXX midpoint wide maybe so with updated your of for more. your compare number. a question. And there’s appreciate updated you guidance midpoint we are lowering a you taking a old outlook But of wanted back I – an go if here. little and your Thank Lisa, much full-year to range that you revenue about million, the guidance, did by

console business to and business perhaps across response or notebook In the you’re your part business. Joe’s is as more primary on where a GPU very sort think the the game well? much lowering broad-based question, of focus you that I Is it of numbers, bit is little

Yes.

is from would I business say full-year entirety. biggest in the the the So its standpoint, variable PC

we environment. be. scenarios started when notebook to pretty If that’s a the can desktop. model it’s expectation and can variable. what So said, I I as had standpoint, PC normal year, from of the – And a think you our various we I And like it

when I than wide all of that a environment we would think the we range. is And the started. have, say size different market, given that given we ourselves

other to about thought expected PCs. continued primarily we at And game the be we and signals when markets, you positive before, consoles, in relates it those to center, the data areas. As look what it’s what we’re

follow-up… quick a as then And Great.

the I’m I I go off. some just say, though, PCs, the finish we by through should sorry, see – to as if data year. the I And that think would I On can way, waiting the of second-half of we’re all

the those that scenarios And what say to And want so strong make we place going So, our to are consumer sure there’s as on is I One all that, lack the to macro be is, spend? well I the I come that’s for they I trends. discretionary prepared impact a pull and other where talk like about. the we’re And for customers. home visibility from of for we two work there’s competing to think said, trying forces. think any full is we to just, continue

I the wanted competitive quick I appreciate that. And follow-up, then as landscape. to a ask Lisa, about

grow nearest ago? the you as market accelerating seeing changes for they how in a call. wafer on dollar you marketing the compete know, any RAM about pricing the a you you. their in talked perspective week to saw from days continues marketplace, either to how XX or Your last competitor perspective Are capacity, quite XX relative and a from they bit Thank

from a standpoint, has And a or It’s competitive capacity the is either environment from don’t dollar market. – the changed market I standpoint. think that standpoint a – always marketing PC substantially

From our launch production ramp it’s into that that all the about view, actually platforms ensuring we smoothly.

And very on And about working feel so, been that. we’ve good we that.

I mentioned from platforms some They’re here very significant in and we of of mobile an that to coming they’re a standpoint. XXXX. competitive. think just platforms XXX our number over that – best are we from performance platforms have market a And very, capability overall

ability that So, on we’re growth. bullish revenue turn into to our

Thank you

Thank you.

Deutsche from is question next Ross Seymore today Bank. coming from Our

Your line now live. is

I the rapidly of the June wanted reiterated Lisa, share very Thanks of good the as quarter. but market same your well is, right. share, letting to hit are on kind not ask guess, you EPYC side to to taking goal growing question. guys for XX% things. for I me news All everybody you the else, and that go and back

the upsided even data number upsiding overall, demand their market last seems quarters, row. few a that primary in competitor three But expectations not accelerating quarters for perspective, your center their over despite has to like or the anybody’s from really within cloud segments group a the four it

growth is the it is to actually the just well, why I our just for it not doing as get is down the there? you’re feeling are? or on, the really Is three something if customers because wanted seemed I’m who the of wondering that to capping last quarters, ASPs So expectations? strong four going upsiding as your market but there be

mean, market they a platforms. so Each And this growth quarter, Each bit are Yes. qualified. is the well there quarter, expectations different steady mean, on platforms and ramp a Ross, we platform and PC quarter, like, that server we forth. in as more and market was it, software are launches, from The something that I business. very, to the there then she And as based look being phenomena had in way the I qualified ramp similar goes. phenomena. each saw at I so on understand pure are ramp. little I as and again, It’s very

going So well. as actually relates it’s to quite it expectations, our

relates to I it. it with As pleased we’re of acceleration think, the cloud,

ready point. not at this numbers upside We’re to

we we growth went already we think in what – I very had through. assumptions want aggressive

a AMD-specific more and us bit I think and customers relates it qualification bit little to market-specific plans. their as less you’ll see our a little

we think a to business are I over that of And doing confident So number need quarters. we that demonstrate our to continue center is data well.

answer. Thanks for that

But for Could the a graphics that Just then computing the my that in and little side. you follow-up, the one I of to what gears just expect And quarter? the over second-half, takes you into back-half and of color reasons. logical the uncertainty computing on give switch greatest look second the of in bit you area as for the and and graphics many that mentioned in for of quarter between both you the difference year? your the puts then sort second expectations side, any know

Yes.

we expecting down computing sequentially. business So graphics be and that will are

some the offsetting the semi-custom on it’s So and side. of EPYC growth

a of sequentially and the and We our strongly platforms some see of that we Within Ryzen XXXX see and business, other of see graphics new the graphics notebooks we’ve we about. trends the down computing up as talked desktop result down sequentially. launch

us, quarter business the how second we have down spending up that’s the for the go as a holds see And mentioned, as are QX we’ll other demand dynamics for in so to the I And second-half year, sequentially those consumer the against through – we unusual. quarter. of is the channel not – environment. normally that’s

Thank you.

Thank you.

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

Your line live. is now

for how wonder that the afternoon, Yes. my Thanks does in ask better could guys. Lisa, help of Good workload first question. place, environment impact if you of just engagement? customer, sort current just in kind in this of question. me new me I new shelter letting understand

how underscore or notwithstanding your better of in gains that, your think visibility second-half and in just cycle. guidance, pocket, And to that so high the about wins expecting good of already most guess, the Are those got you’re year, you’ve of back do I pretty gaming dynamic? the kind given share given that I back-half

Yes.

good in from that there how our from long ramp if are a And are months actual of anywhere takes be many typical of a it So already to nine progress. customer to would to I sort view that number. our think be it engagement of beginning ramp six that’s can

a you only level on the call I we the I grow right focused side. as the see As is, to cloud, pretty a strong this go with where mean, of the what a people transactional as on through just on be the, which see aren’t shelter place, relates activity. we little The year, as and it as to continues we look, both had to more new business, some plan well might we of grow perhaps as slowdown see enterprise we in infrastructure activity said, that as now. slowly it bit place high

continues of cloud one platforms, engagements. enterprise, well there pipeline and already large design good terms on in as new to But be current both as activity

That’s helpful, Lisa.

as are coming, progression. probably the on margin As gross gross aware, focus and we sort the given sort metrics margin guys my probably convoluted is follow-up, that much ramp the issue. of just you it of one gaming painfully And too of

now margins having right business QX you full-year So both would I.e., is gaming I impact hoping and trending console would gross the for margins? your was of What kind what both full-year? ex gaming and of gross guide the maybe be quantify guide. your on to June

at it… if think look I you

ahead, – Devinder. John ahead. think, Go go I

you’re is And you the QX QX, at down. is in the QX, specific asking the primarily QX ramp console at came fundamentally, game if revenue. to if QX, to due in look the XX%. we So

that earlier, they and improve Lisa As are do time initial the of mentioned lower we over semi-custom. for revenue semi-custom said margins and the typically ramp

at as down also impact from standpoint, having an therefore, terms of in lower. from the it you sequentially it’s gross margin, a average to company look And is corporate when QX. going But the QX margin is

is non-gaming point it from But higher I gross basis sequentially every impact question to XXX than move more my i.e., quarter? year? And the – gaming in this quarter the continuing margins June is guess

think… I

Go Go ahead, Lisa. ahead.

are and I not the in same room. Sorry. Devinder

is The semi-custom. So sequential the the answer of points is of impact John. yes, decline X

take you semi-custom. desktop the server up be and would portfolio – would semi-custom all rest sequential would decline some the in is the see rest of that. would see offset out, the If of But of what the you portfolio you see you is,

Okay. Thanks, guys.

you. Thank

from UBS. Our from Arcuri Timothy next coming question is

now Your live. line is

I Devinder, first that of data said think guess high-teens question, I Hi. I two. had the you revenue. was center

So lumpy. that And it much sort can CPU out was on versus guess put low would be Can mid-Xs March. GPU? of that to pretty GPU side, the break the how for in you I

assumed So out call that’s anything to June? for

Yes, towards the weighted CPUs. it’s

you center CPUs and together, revenue is weighted revenue business data QX from high-teens the that’s of in GPUs of the area because the If CPU take CPUs, towards QX, but server growth the in a standpoint. primarily

I then bigger And guess, Okay. picture question.

And critical additional think, I you I review could for regulations cybersecurity China into there’s would under Lisa, on maybe So infrastructure. effect that around fall information that. that come in think new X June some

you right now basis in on maybe, how any thought much tell if is think of could Thanks. of a that revenue for your how And demand consumption sort could So impact you us you? China? on

Yes.

that So at new we’re looking regulation.

regulation. have time, specifics to point don’t continue we’ll this at look I any So in at that new

is it our would the cloud. or business consumer majority As say, I it China consumer-related of relates let’s overall, call in

lot, a Lisa. Thanks

Thank you.

two take questions, we’ll more please. Operator,

Certainly.

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

Your line now live. is

Hey, one But my got guys the question. guys, bookings of kind first taking the you one, thanks follow-up. on are saying. I’ve just for

about a near-term up what revenue ago, are worried improving? guys backlog? with better? bookings changed today the that the server. expected backlog? you So I’m Or you if and to of here look sitting what quarter you much the overall less number like terms for put getting kind But in you’re it Is at compare in guys that Is pretty Has all? it line is of for that

Yes.

think certainly earlier, think I – said it I is I better. it’s Mitch, but,

So a quarter XX we ago. have days the into visibility versus month better

more And on It’s one the Okay. broad. had then is actually. second China just I

up of So one a thing supposedly deterioration. buying U.S. is chips of a they case from ahead, the lot picking are China banned lot and just semiconductor we’re the in relationship companies Chinese that get

just they get since you’re you in you guys up geography? what level do actually of that’s may banned? you So is are to the I any build up, happening right occurring noise it’s Or chips actually in really Do to think are that people really build guess, guys hyperscale. inventory that now more not trying and an you on guys And comments have exposed for that, not do involved think kind semiconductor there?

looks have of little to both and a it’s say would Mitch, generalize. about. patterns, see for the me like but we hard sell-in Yes. it’s normal from markets and closely. we talking what some bit consumption don’t we track exposure I to pretty It you’re

it. Got Thank you.

you. Thank

you. Thank

from Our next Curtis question coming from Blayne Barclays. is

is now Your live. line

second-half, me computing then in growth this work intermingled thanks guide, get how was enterprise at the gain – fiscal sure graphics. still look you of or first-half particularly just require server, and you think I’m if Lisa, or obviously, kind curious just I it Maybe, in. together, of would Hey, guide want at seems think looking with your cloud right. the squeezing for I’m I like make just kind curious And and that home. to of from share you

look the kind business, of curious any how well? from about not as there headwind was government. just about a – that and as I is and some in So that as Intel Do rolls think server first-half for you enterprise exposure work weakness home you big kind curious thinking of off I’m you, spend talking at second-half. you’re but It’s

Yes.

as to minus second-half, X% relates plus the said, than it us. is we as So $X.X there’s billion, a I for mean, range – or a first-half, normal wider

well you outcomes would within as outcomes have it that see can more with graphics computing can see that range you as think I up, and flattish.

that the being case. So

go enterprise into year. we we desktop the talked which channel the of trends, consumer the for that as how a a to I and positive spending are notebook I sort see want right about likely is little the share trends second-half the perhaps commercial, think the behaves gain, us; softer; positive a for us; of So and

your second then question? And

– about, is from of, saw curious and second-half? any a cloud into kind first-half, in you would you second-half, as there some Just seen that, the the headwind you’re of turn strength home server that then in March I’m had work kind at you how some in thinking June. within look benefits business,

Yes. we Look, mostly we from see I see, what think platforms ramping.

And the so we’re business. about that’s thinking data center how

Of this in COVID-XX we’re course, environment.

the couple of And so next to we’ll out actually quarters. play have

the that’s of second-half with But within growing very the are Xnd see an year, platforms we customers, feel the to of continue early opportunity couple see, And ramp. have a And the been ramping. in of the quarters, know it’s that that EPYC stages ranges our that in just ramp. visibility we like the we but I I still the we’re servers Gen much way given

some year. end don’t So activity, of second-half of other the pull have the the And customer as of up the much get more significant we’re in ramp, volatility customers of the possible. as to as lots we from a may in as markets, and which you early said, have exposure stages soon the – to running have

Thanks.

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

you. We Stay quarter. with Thank you, and That today’s call. you and appreciate concludes to everybody stay well, safe. participating we’ll the look Thank forward Kevin. engaging throughout

does That you. teleconference. Thank today’s conclude

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