Advanced Micro Devices (AMD) 28 Jul 212021 Q2 Earnings call transcript

Hello, and welcome to the AMD Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. It’s now my pleasure to turn the call over to Laura Graves, Corporate Vice President of Investor Relations. ahead. go please Laura,

press welcome By second have now, review our opportunity and results had XXXX conference to earnings of copy call. we a and to you, slide. quarter AMD’s financial the release Thank hope you

documents not Financial Participants and be amd.com. found they you’ve and President Officer; webcast Chief conference today’s Vice Kumar, call Investor If our and call on replayed Lisa yet, page and Su, Executive our the our Relations can This Treasurer. is Devinder Executive these website. reviewed live Officer of on on are be Dr. President, Chief a will via

Before at that General differ. President refer statements information Strategy Marketing, Friday, Human could on we to that begin beliefs, on Semiconductor close Saeid our and to to as will Manager on Technology and that and September cause expected of factors on risks of uncertainties our such results assumptions XX. Devinder and note as Hardware speak Deutsche today, based from actual XX Resources release We expectations, results only more for will to XXXX and current Tuesday, our time cause of Worldwide September contains Investor discussion the involve of XX. expectations. Ruth Conference Today’s quarter would in and August begin, Friday, current and differ materially press Summit Vice cautionary Bank statement the could actual like forward-looking attend business Relations attend third Client to quiet the Senior Jefferies President Kumar on and Moshkelani, the is Senior Vice Business; I Cotter, our

our Lisa. full GAAP With to financial that, primarily will on call. this the are in release hand Lisa? I posted and non-GAAP refer to available measures over during will press today’s call We website. to slides reconciliations non-GAAP The

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

a resulted growing in all than strong our X gross financial businesses, performance very demand growing revenue our profitability operating the XX% customer more well market strong high second and year-over-year. billion. exceptionally saw execution which performed by of quarter. product quarter in percentage our business generated We preference across in year-over-year Our and points, A margin, We significant for tripled X.XX to doubled expanded margins second momentum.

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to valve presence the to handheld we're production in increased latest X win Semi-custom and and X.X the to sales. to Semi-custom year. systems ramped we deck strong in Model processor and CPUs verticals, including and Embedded console semi sequentially segment, our new epic expect and Enterprise embedded, good networking, vehicles. We of infotainment throughout chose billion, announced planned XXX% our expanding in steam automotive, driven quarter making to S the Radian launch and AMD Model embedded Tesla's power as earlier X custom this to month Turning year-over-year both Semi-custom shipments power AMD in-dash by year-over-year storage. RDNA We game game a across console GPUs revenue remain In and progress strong this revenue key growth demand grew Ryzen their and December.

ASP. unit Now, fifth server, server grew by of and double-digit turning driven delivered our revenue. shipments Sales significant to by quarter record sequentially processor straight we a percentage higher

with EPYC processor doubling our gen third than sequentially, seeing more strong revenue demand sales are second portfolio growing very EPYC quarter-over-quarter. We and full processor server across gen

the are gen instances EPYC performance further Alibaba. absolute by the led processor scale quarter, the in than as is industry XXX prior leadership competitive faster announced Cisco, chose Lenovo, workload price EPYC enterprise, our power Microsoft AWS, versus reviewers delivers accelerated to HPE, In demand AMD xXX the Third workloads performance growing XX third value Dell, customers nearly server new AMD third-party and adoption exclusively family other and Google, platforms in than out gen Cloud from powered revenue production EPYC and processors that as ARM new Supermicro, Tau performance latest internal recognize its and more demand generation processors. offering VM first ramping by others. Google for and of multiple accelerating leading and offerings. see we now and Tencent, in Azure, it processor

as highest French computational In core quarter, secured deployments and We in addition, performance, desktop solutions we and targeting appliances the partners the per seeing dynamics. ecosystem as Center AMD wins are National Singapore Energy the infrastructures, virtual multiple demanding and powered fluid our expansion and OEM a hyper workloads well including and such in rapid Supercomputing Atomic the HPC number EDA Commission. announced from by in of converged as the newly

fastest of half based that by last the in the Our supercomputers power on systems. XXX by year, fact processors substantial listed number and XX the momentum the systems Xx HPC in the increased AMD was the EPYC newly that Top list latest highlighted almost of world's of

than Looking overall in quarter at percentage the first increased and center business, nearly the high-teens revenue XX% our in from year-over-year greater to of data revenue quarter. a doubled second sequentially overall

the on and We OEMs built MDCs. revenue expect data processors of the center instinct EPYC engagements continue growing to revenue based and strength expanded we than have and faster our significantly the leading largest overall with accelerators,

on the additional strategic our XX% we United for approximately unconditional and our acquisition, we chain track considerably guided of the year. by customer regulatory annual the passed of In as we our supply products the I'm quarter from at in business milestones approximately towards Based with year year-over-year, opportunities and about approval strong are the jurisdictions, We received EU including to Xilinx close growing this the Kingdom. closing, and preference excited end now accelerated the beginning ahead. half in by grow of to extremely execution pleased up on in the revenue year. transaction growth the Turning in XX% multiple expect the and first execution, remain

products Our X nanometer of technology GPUs. pace in engineering Zen and are generation aggressively teams including innovation XXXX, for technology and industry built We process remain the product our computing. with our continue RDNA X our driving processors to leading X roadmaps next launch setting performance on track high to

partnerships we're making between significantly dissecting significantly of have towards roadmap stack the demonstrated with high AMD to summary, continue technology We faster the great strategy the and we a establishing denser on more In enables efficient established, Based the leader and the goal connections advance XD that performance our next also our progress in we major best-in-class our recently as chips. long-term our of deep and strength triplet ambitious differentiated computing franchise. growth expect growing market. than

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

another and AMD everyone. you, quarter. afternoon has Thank outstanding good Lisa

Our high computing generation. record and product profitability, driving performance growth, momentum record revenue cash is significant

in XX%, million, XX%, ago. significant across revenue businesses. from ago, a XXX ago. was was XX% to revenue all up growth. increases XXX $X.XX basis up quarter earnings compared growth was from XXXX, Gross was million, to up Year-over-year by billion, year the a driven Net expenses million share product Diluted from XXX a XX% and we ago. more This than by points margin tripled year Second a the per quarter. year up a share roadmaps. ago. includes to effective Operating primarily continue XXX million a and XX% by a all rate from doubled margin ago, X.XX XX% million higher X% Operating from prior our per quarter revenue from income of ago, driven margin year was income ago $X.XX compared to Operating and contribution XXX XXX an long-term compared were million year business year share, a year year from XXX driven businesses. up improved growth a tax up to to second as in invest mix per revenue

driven compared revenue, XX% Semi-custom graphic from segment and Graphics primarily up EPYC client both or revenue million operating compared to a XXX processor significantly million year-over-year, billion, or Now, segment was businesses. revenue ago. was XX by Embedded in XX% XX% XXX was higher Computing was X.X revenue product million segment year to richer and XXX mix billion, X.X to driven Graphics or the operating with revenue revenue Enterprise strong revenue, EESC Computing processor XX% turning Semi-custom income prior of year. sales. the and a was million product and business income or and segment results, increase of year The up a higher million ago. X% XXX% by segment XXX

equivalents prior Turning X.X second of generation, second balance flow. short-term in a X.X to up XXX cash higher last were in of $X XXX cash record sheet, we for X.X up was results financial flow cash for half the stock million common end in the the annual strong in the in quarter. repurchased cash billion which our billion, the compared shares the same billion from more and year. May, the prior X.X quarter. the of and expected X.X program stock under million, revenue was from Inventory we the cash, double free support at repurchase announced year. first of cash of growing flow quarter XXX quarter half billion Free XXXX the With than investments million million XXXX was Free billion, to of

current Let current me outlook. the the and is third on supply contemplates based environment quarter demand to customer signals. global expectations turn and now outlook Today's

center minus businesses. X.X expected increase driven to is approximately and be or XXX XX% million, The growth X% an our be be in businesses. to primarily of increase driven approximately year-over-year is growth approximately revenue expect gaming increase across sequential year-over-year, We plus by data and sequentially. all expected to The by billion

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

revenue guidance approximately businesses. XX% we prior our For across the XX% XXXX, growth XXXX, expect up driven over of growth from of by all approximately now full-year

expect and be we tax revenue, Non-GAAP Non-GAAP approximately effective of prior to XX% XX%. We be also operating expect gross non-GAAP margin approximately to up guidance from XX%, to rate expenses down previous approximately be revenue. guidance XX% approximately from question-and-answer of strong of XX% of cash business rate to returns. financial turn growth, X%. accelerated delivered company's exceptional very momentum, and the that, for With the I'll Laura? another tax quarter year-over-year session. to closing, In delivered our we excellent back approximately be Laura it with

Thank you, Devinder. Q&A the session now. ready we're begin Operator, to

Thank [Operator today Instructions] you. Sachs. from question coming Toshiya is Goldman Our first from Hari

now is line live. Your

And And as characterize we then follow-up. Thank capacity congratulations you you the look that XXXX, you and you supply pretty set you didn't be importantly, from afternoon. questions on current so capacity] to today for appears as the a [ABS I've Good taking a demand? ahead to foundry how on for wafer continue of results. grow you gap the the comfortable marketplace double-digits? quick a strong touch investors. in a between really much very supply know, companies business and How sub-straight perspective, got and also for and my big strong to focus are Lisa, would situation

hey, Well, the thanks for Sure. question.

know, I the to think been AMD environment demand fair XXXX. very in environment, particularly it's semiconductor You that the has say demand strong and

You know, couple quite I'm past terms that the in we've quarters, supply working of actually with our progress we've been I increasing of pleased for supply. the on made think

leading said bring you original know, guidance. you made of making that but extra I've progress in you quarter, you to is, constraints, what the each full-year are the to, quarter. we we have. exceed know, continuing certainly, progress know, some of second us we're second And know, which supply see, is do level know, you previously as raise of quarter You to the the each the enabled that we we guidance half year, into go we And on know,

improves make continue you will say know, I I I end We've drive heard it's other we're you companies, year, this to many for think So, like been one the is tight, think our to that, significant of XXXX. through know, going significant model we in know, it you from overall, growth. progress. you where planning you've growth, know,

you half So, our have XXXX with as And, know, can we planning year with we the go that into supply we've with into of been partners. and to chain this grow do that we substantially supply continue the chain. confidence second

to, the half versus XX% data your the in the follow revenue And in quick second hoping second data a of question the a on as second can Enterprise of you. server, or then gen seeing business gen, the into business of and Rome QX, I Cloud and that half then was think and side And you more in you of finally, of than up, your talked you And third broadly. between could guess I Great. embedded on center center CPU if segments speak different multi-part outlook quarter. business? your versus sort business, sort you about the what's guidance? more differentiate Milan, construct what as second you're Thank side then revenue, about, being

Sure.

questions few a there. Quite Okay.

through let them. me So, try to work

mean, very terms you server makeup data business of strong. our in I know, the center our business, was our, of So,

think know, for of you the know, I you sort sort customers. with Milan very well product proven total performance of out capability, and and, of just, our cost has the ownership the

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on you second generation, tends ramp quarter. So, and case to that know, was the in we saw, cloud faster new the

enterprise. cloud know, grew you than So, faster

you coverage, very that a very for second as sort strong that. good traction know, in generation We're you there, out year, gen have as half actually level think, cloud very of socket quickly and the we're the core we is, performance, quarter, pleased know, I getting know, Milan enterprise. momentum the been know, platforms and just which you then, know, seeing actually we strength of ramp crossover, have in what of we're crossover breadth and, third go strong And to second performance. that the and, the as continued and, expect will will seeing HPC, you overall per you third the the see we're know, You the well into you AMD, but and we and with across know, traditionally

than want, second I quarter. know, as you revenue go balance you stronger us the for your year, strong the greater overall, we And And know, then than driver our second think that I the pleased So, think center the terms to was, continue we're of it we of into will of year. half of sorry, that. I’m data half of data half be believe year. server was know, a in that's, the for the the in was XX% us enterprise but, with about, be second you component that will in business center question into We the a the first

And of half it'll be larger in year. second of so our the the overall revenue a percentage

Thank you.

Raikers is from Wells from question next Our Aaron Fargo. coming

Your line live. now is

how can levels? And, do maybe margin, that's that think we're Congratulations, well, actually wanted of that think Yeah, going you gross now thanks. the a threshold do a pushing guidance into we guiding that you you can consider you're basis you the think kind we of know, gross full-year know, like to segment Thanks gross consideration, know, it we the if for towards as you about trajectory the how quarter. new, about, you XX%, looks with the know, XX% margin, XQ if taking up – guide forward? question. we hitting points, I modeling ask the should on XXX take unpack, margin

the our are we to XX first as And in plans the And the I center, up from margin, for we get gross the target you businesses progress year with long-term data we guidance of greater help have all, Lisa very the talked the than especially on say think just about, made. to XX%. pleased observe, descent there. the And XX. I of in have we to get think know, model, have that taken You I'd us

corporate the that that is that. You to ramp the in is the gain also be business we product center average know, margin, we we and as the in given important, gross continue going revenue the share business, mix ramp higher margin. the drive the the the of gross businesses important to improve confident can data PC are than to and mix And revenue are client

good getting than the about very time. feel greater So over to XX%

Yeah, and maybe…

Maybe I'm a… this was sorry.

to Oh I going that. was just Aaron, add to

I you think is, thing, think you mix think it really of know the to as our most the about is business going about important business. about forward

So, the you us. favorable you percentage within And well you as strategically as segments, for we're a we, key as the really becomes the mix a data our business, know, as, the puts you higher but the and know, know, focusing, about mix. higher takes, look in looking business, know, as we're just margin there where standpoint, you it's things to at portfolio, always end are mix are we the center that of really that's know, then know, a at, of those you from

know, about EPYC as just still of you a forward? line-up, have successful then think continuation sounds Thank to like starting know, been, ramps you and Genoa stronger the about appreciating to that, you. going uplift on you as as with Milan follow-up, ASPs you Rome And as Yeah. leveraging and know, of blended majority the Milan, we the far regard how quick as position, think a is, real even

Yeah.

you what business, of know, is offering, per performance socket, we more as So, doing. we're the that think sort about, and know, is you know, about as trajectory it the you of we,

It know, as a lend you certainly going know, higher you to to of performance or know, Rome. So, we uplift ASP general, you I Milan clearly, itself is go a to And higher that continue mix business. the think, does trajectory. relative then to we're

you and Cloud know, mix server there's within So, a between I think, also Enterprise. then, and

a enterprise, first As stronger I of we side to of half would server favorable in percentage that you of also be know, the as we quite mix Cloud-waited in the business. a And as the said earlier, here the we're go year.

you. Thank

from question America of Our Bank next is coming Arya Vivek from Securities.

Your line is now live.

Thanks your curious the seem accelerating I'm X the it's until we from year, of order points be share this taking momentum? points. you disclosures X business, gain driving did annually, last that Lisa, AMD X continue acceleration? on see server my this on you of saw server Intel's anything about yesterday to question. impact share to think share server year you take X to gains for know, And to roadmap what's can the

data question. server with well, in very I of multi-quarter, for you the Well, you as the very sort Thanks Vivek. around think know, you progress we're we're multi-year in Yeah, business. focused business, the server you the on, know, excited momentum know, center know, our

product been I think, execution very think strong. know, the is you the very I strong, has roadmap

– I you in think Rome customers also, but with right. our you the generation was, just on third sort know, you was, had you know, socket it customers felt Milan, Milan, with go more because Milan, They the this with, third know, already, were of to comfortable of with know, compatible. broadly, sort much more many time, of

was, it you time know, and there ramp we're so seeing ramp was a to faster. it faster And

it's very I’ll there Vivek. good a we're I market mean, where feel always out we competitive positioned. about So, that. say

to good expect than really be We competition better we and be that. to our need

know, team you we're so, And very excited about is on And execution. Genoa. focused our

customers think I are our excited about Genoa.

and need as you so, keep momentum it know, you has roadmap the to, we And as keep the been. strong know, execution

you you billion you I my $X are QX, buybacks know, we it. midway in You And you. through mind? have decision guide know, you think XXX a you, do? late-midway, how timeframe to much buyback, that. about did kind Got your million to or believe, Thank follow-up, buybacks going of know, about How of What's of and certain you share only for do should announced a forward? going when

to will know, know, the sheet to capital balance you have obviously shareholder continue as really opportunistic, return, these Vivek, specific improve. the and no think we I programs as Yeah, you been

repurchased pleased specifics but million. to million, about into over program wouldn't I get on are X.X more will see with as call. XXX initiate we in any this time, you the And to QX to However, want

Thank you. The Matt Cowen from question coming Company. next Ramsey is from and

is line now Your live.

afternoon, results guess me of one have of I you this investors that. set about Good quite coming is asked revenue I things and and is upside, Thank a everybody. Lisa, delivering that the very leverage really to was the much. operating but pleased the bit you're margin, with see

rightly have been to guys delivering; grow business the item versus and that's the just a ton I to been And a been operating Thanks. that's in balance some of You upside spending it's fulcrum forward wonder revenue my conversation? reflected from thinking going sort in growth. margins about the you're how an because investors of growth

Sure, add. has Devinder Matt, start to then anything if I'll and see maybe

I been was our know, growth I as and know how You delivering, think we, look, what you strong, you leverage, in always operating about, been both it we've previously know, revenue invest think you know, had certainly has well thoughtful very know, very forecasted. the above business you as we

margins, are know, do the deliver, you And you vent to in business. the think opportunity taking and We know, but know, marketing, that's And, to you R&D investing and the as know, forward. – see you in we in and there, I go the the we leverage improved operating operating capabilities intend business. really, continue invest you to to overall investing sales in

do of do all think those we can things. I So, it,

to grow above we can revenue the industry. significantly think I continue

we at in rate revenue deliver, a will than lower to OpEx continue time. operating you will We growth, continue know, over invest margin improvement to the and

it covered you Lisa. think I Yeah,

update of from, now the to make growing right investments grow is of in as viewpoint significantly. or year, for well think well a area mean, for and XX% from I we to continue obviously, Hiring market. a we discipline the that's guidance go as know, said. as percent the you about OpEx need invest as I did another pretty revenue saw, to R&D is of XX% the people you business, business we as to the focus

Thank for you both that.

PC my some the have we market PC towards it’s of our bubbles And saying the industry share I CPU eventually going competitor bit commentary you the wonder couple more bullish inventory. back And As the like building interesting, work about market, follow-up, of in forward. a view? almost the gave might a OEMs shows, maybe few strength a state heard more investors in and mean. if your it's concern the we've your that Lisa, they're revert of the And Chromebook fairly tiny PC

So, about on market, them on maybe you helpful. have your ability gap any Thank the if be views inventory the that visibility, between back or and you. of those parts, would PC to commentary in really own and orders the fulfill AMD of your the market, things

Yeah, sure, Matt.

So, in look, there are lots PC of market. signals different the

few know, make a comments. you So, I maybe will

I demand it's know, say to think fair you that, the strong. end user has been very

second the this the And, know, know, you home, trends. of in year. this, first in then year, from you home, work sort return last office the So strong from and know, very some of half very from strong all of you that's know, you half to of, school

through shift there You you a go know, within that, a time. of little bit mix is as you know,

when well. know, that say the at market, I we look You performed very would I

revenue You gain segments the market. market you know, strategic we within this know, means share. of continue what know, And on backdrop, is, to we're PC the you that focusing most

demand you'll you market, if know, or You you sort user PC know, the that. about, agree hear this forward, go is also that look you match things of know, like do end that, strong. of year of you I know, the I know, component you half shortages second pockets for at as and we believe sets,

you we all of planning you all know, perspective, we know, our half of half. our, that's the well at do not know, year. about we second again, know, think by PC track the retailers significant the supported as patterns well as we inventory you of and look there an account, PC We our doing. the And, it at product. it, believe know, know, sort that know, very we're is to our OEM. AMD as be you know, half into about are and look of OEMs Anyways, that ordering very business closely PC, what first think at, taking we're flattish, inventory. of, the From So, standpoint, you From you at, you do second you the with the

case, you closely, we the watching recognize think our down. I roughly strong in you said, and, very, half. second like may And know, it continue very there there's you to expecting the know, you or and end first know, know, you marketplace. the for is market know, being PC user this, supply the go business, needs happen, it to I demand, that we're you some that flattish We're just, know, So, half that you be know, matching that, up believe and we have to

you. Thank

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

now line is Your live.

Lisa. solid Good the me letting Yeah. Thanks afternoon, and ask congratulations question results. the for on

sequentially. just segment comments, prepared EPYC about was First sense relative your the the or June it grew in a a us relative outgrow line? segment that it I clarification, segment? think quarter did overall you to curious, did the Can overall more double-digits The give how to that in solidly said EPYC I'm grew just you XX%. of

segment the outgrew second in We quarter. Yes. the

I about concerned should your on and like perhaps kind how my much pricing of more of clearly than pricing. price my center, mind, your about the Perfect. aggressive, concerned of price second more data that over question last protect thought think little you conference call, given performance, in we share, Intel And time? And about just around cost point. kind pricing, ownership question just entry talked be or get a an to I'd I'm to how to mean, curious as more on in are you a total week then a is especially of their strategic being bit is environment market

Yeah, or thanks the, for think has, know, you you more has I that John. the market been I you see that know, it that's Look, become know, changed. don't always competitive, competitive

is a cost you when buying total CPU not pricing said, really first order As you variable ownership. server is you're the know, about of it

is I customers know, think you that clearly that. there, think we and is, leadership have, performance see I the

you of mean, do for you the to we know, you know, second that a market. know, prices, the of the very think that the that, sort deep is fight the you order we're So, roadmap every in and, of strength lever we’ll and I that you partnerships, always with way you competitive strength know, will, in know, know, socket. But, fashion. we this

Thank you.

Thank you.

today question from Sur coming next Our from JPMorgan. Harlan is

line now Your live. is

great and afternoon Good quarterly job execution. on the

more service now just good an provider to know, on also see in continue get You strong new And EPYC also market, a with market. into to networks. on access of right? $X their to know, billion market. radio billion, their Milan enterprise, networks. ramped virtualize they're the functionality versus about the operators with you and, big update generations. Milan It's supports networking to XG, the guys core trajectory, as wanted markets $X much relatively virtualize moment continue And It's you total prior starting the pool drive to a

the as to large if seeing want team with early as the just service XG equipment] with of so with is some [telco And well see OEMs, providers? momentum Milan

for thanks a lot say of and know, of we Yes, Yeah, the segment, a for segment I today. us, I that good a the believe say would wouldn't there's interest. revenue is telco you very sure. it's look, piece Harlan significant question.

opportunity is communications set know, as overall the know, and I for know, telco AMD. out of we with sort that their of for relationships believe will Milan, so just comes view solutions combined you as, market, I you in business areas to, we helpful bringing but the And know, together. that to as you you strategic in the know, you we Xilinx, in is as solution very So, Xilinx continue one build the think as it ours, the be well,

but a say would us, that we're on market know, for we early you think it's particular I yes, still very So, we're, good cycle.

the next enterprise cost Great, thank the second Can than half some probably cycles you then corporations, on large are engagements visibility have momentum probably businesses? longer breadth about size in you. just And of in early as the of enterprise, small-to-medium enterprise a across into because some the bit you the cloud and move your talk customers. and year, as you strong into

Yes, Harlan.

So, see with seen and have with that Milan. you but you know, very know, that Rome, we we a pipeline, strong expanding started

past with largest ISV come our you for breadth up platform look Milan, well. a if optimization all just, as done generation, at it's to the think, from the and appliances, I of quite broader, more offerings then think more, I you OEMs, you also and know, know, are starting, you know, bit and we've people

So, you very also know, our the into second it's good, visibility is, XXXX. into you know, And very the half of good year.

multiple and about, the the, some strong of two you certainly is I strong the all tier piece as quarters. cloud large for seen, with good think you design about of, guys, us. visibility but small, know, business sort think the I longer it you and of then with we've you know, more know, channel companies, you is opportunity as cycles, said know, know, you of that And business, for the medium we good think this,

you. Thank

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

now is line Your live.

could you of to I half business Is the that back seasonality year. thank you. talk the Great, seasonality console continue of kind the or of be more wonder in if about does constraint? any a of the supply there

Sure, Joe.

know, early cycle. you for you And we're console strong know, products. seen demand console the think those quite that you've the So, in there's very I business,

so, And seasonality the is not is, I typical. think

know, the year. stronger So, more and half, typically, that half, than the muted of sort see you second this you we you know, know, is, first

nearly is in there second console, growth half seasonality. you the is of So, typical into but know, some it what it's the year, a not

you. thank Great,

you. Thank

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

Your now line live. is

think kind they year-over-year PC the do growth still around just rest think opportunities next maybe bit year, be and other year, Hi, the you Lisa, your I'm example, portfolio? have. of calling down grow sanguine the the you other could seem a more that's for market you So, taking for so outlook growth, of you were dependent my function strongly a the for that do a the of sound continued all, guys, about PC, year? that like next next environment, versus to competitor on strong at does opportunities PC still if of for, XX% strong of it is the – who curious, state growth thanks questions. given in your off some you XXXX

sure, Yeah, Stacy.

the know, signals for think different XXXX. there in you PC market look, I of lots So, are

have that the various So, say PC is, call is, know, different view, believe we the let's know, I is doing a, your if you you you portfolio. growth know, scenarios. in of as we're from point yes. across that as I business as to can that, even market we you know, it for grow you well, question we I not we believe know, taking And, let's robust might would we our answer know, there's think, you But strong will, you forecast. mean, momentum the know, what we're it, planning some the overall call

gaming our you you consumer. know, PC in, you and know, commercial, in, data we know, play that, we're board sort know, whether or notebooks, talking premium PCs, you're center know, you You across very markets view still good underrepresented, that particular, the in side, premium the in about we're on of is know, gaming, the or you progress making

generation. with coming our platforms more our have We in next XXXX Ryzen

obviously, less work in our, but with the of And, OEM we to closely very market So, what watch our stay partners I you we sort seeing. you think know, they're closely. you happens to, exactly dependent in outlook tune the market, with very on is what know, know,

it. helpful. you. That's Got Thank

OpEx explicitly. more For little up, want my a question I follow to ask the

guess that level this opportunity, to extra the exit sort it XX. is invest I'm rate going understand, do Is should like are months think about and did we my think higher [Analyst still OpEx to right, you're you midpoint an math, be but given, down I a I for to kind level? closer more the up Day] medium-term? for might or in that you representative year it of to trending like to you in I revenue take percentage we get maybe of several what quarters, why more, doing the taking least had, down the And QX see but XX bit that the somewhere ago the of if a near rate So, revenue OpEx XX%, at exit in from I mid-XXs, at model OpEx, next of of

for Yeah, I think, business the this is you hit invest first of dry, they the in Stacy, all, a for growth. priority

to are We and significantly just cover guidance. the growing

So, market support obviously, or go to a in growth, that of it's R&D lot or even hiring. whether there's invest to to areas

the QX overall from kick-in increases standpoint. is for gave than Second for OpEx salary does And we of OpEx drive the QX, an year, given you obviously, employees. also just guide the that have that higher higher, which

are your As I but standpoint, the that know, know approximate. XX%. expect from you numbers running for far model concerned, numbers an if as you're I you probably really, those the come little a year, overall in there, me, And are we under ask would

because make XXXX. come into gave plan the we introductions you to have new new in continue we you business, extraordinary XX%, support XXXX, the coming that You about, into we that Lisa talked there that just sure sure just year. products support product we are guidance of as know, and growth, I lot Nothing know, approximate the under of but the we'll for it's XX% know, think making there,

is that's what it Stacy. So, really

Thank it. you Got much. very

two Operator, more questions, Stacy. you, Thank please.

Certainly.

coming Our from is Curtis from Blayne next Barclays. question

Your line is now live.

graphic just questions. to the me letting ask strength. I want for thanks ask on Hey,

said it you think I doubled.

kind describe you know, maybe PCs is, flat December in with driver more kind a again, Just in how client coming way then is the could say the curious, you parse-out the it's of think half, from how just I is much much into just, is versus graphics back a and strength September you crypto to of center? for graphics a there I what data heard driver of

Yeah, sure, Blayne.

quarter. about So, you your know, to second question the

revenue. crypto is see revenue, as there component do really was significant I graphics X graphics the we believe know, not mean, in a we RDNA You it ramping. our

well the products of we pleased RDNA as some GPUs. know, data You mobile some as of of we shipments reception we're started with in and center launched in mobile, X new our

data half some of center gamers you that's to cards. know, GPUs. the center. data know really that are And, into around view early CPUs, is still continues of then know, gaming really crypto their the year, there of But, of driver So, for the know, go there graphics out And, expect, who is as get is driver know we component our know, you base you is strong you negligible. we as graphics. the the know, of across, you the some say second be the I demand largest wouldn't do ramp our know, And a well to you as you of lot are looking we there business,

demand, know, you so, big think gaming over efforts the we I was know, it. continue getting into And that, but we'll you our that hands. piece graphics crypto gamer’s And, to you of know support will our don't a focus on

fairly is a you've follow-up you a GPU curious year center wins opportunity, with Is some them mentioned, just further a data it story bit model. new HPC when and chunky, of in or maybe are And couple the out? impact that just the have of think on Thanks. you about a next that kind

Yeah.

small base. So, mean, year, the of see off I we'll in you some second of a growth half the know,

we and the as think year. certainly go next I year, meaningful becomes a know, it following You then more driver into

on So, think did about know, the CPU center sort you side. we story data what the of, innings of the as early GPU

very Blayne, about with product, you it's next X. generation think know, product a the our CDNA exciting, excited You I know, we're

you some I have we know, with early wins won HPC. think,

it, but CPU You business data know, of journey. it's aspects driver multi-year the side. is server you know, work the some And larger customers machine learning continuing of we're to really center cloud AI the with on a our and

Thank you.

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

Your line live. now is

I which for Google they're the seems like running XX thought Lisa, for it to Milan I thanks a Hi, threads with looks your was mode, fascinating like question because me and one years a about single it throwback a threaded taking had my of Tau disabling ago. questions. to their instances. in announcement

Are AMD know, if you CPU kind and it you threaded make more architecture line fit, of core count a on for of Milan that the be to questions couple this just of AMD Would would Processors mode the streamlines in something one of higher I it cores seeing for a that logic even And you sense have seems CPUs fit something like make this are, sense Is implementation? of about versus consider a use Xeon processing like step. thread, feasible? potentially and you. this. would that there next seen architecture, Intel processors? I single be outside Is the to beyond in that processors haven't Intel demand So, makes logical Google then the mode. this Thank getting the you more for? could it lot dissipation, you're it a cut power on separate a the – you only demand lot

Sure.

So answer know, want is a mark. broad The question. to I how would be the you I and, of this again, I little way in say bit, sort

And, different you that I think very watt of is that are and bleeding the, the some server have see you know, lots what used know, you there you know, know, you looking know, there per per in better, know, useful. performance. is the dollar. very, land overall, sort – And cases, know, you just of level are multi-threading socket the the and you you for, for performance processors, performance performance, you you get edge

do is, see their partners, what where a that want we're used from you'll and you differently? I know, we they you overall cases the you than the per of performance some with lot as you're spending across we've to you what of do, type know, our performance, optimize, look need. offer processor think, you what you focused configure think know, is hyperscale that on them to is how you or customers used more dollar I us, cases, time seen what of of, that, sort and sort need choose you and instance might know, Mark

range across, see customization, performance that, used board, want you range of know, more the do know, you So, of sort know, we of, of satisfy you'll you know, across, across the you with the cases. entire idea that to us know, you

it's will we're cost those the know, think right optimized you talk that, power the all you say for go So, as I workload, the performance think I that, you we very and in more we how product that roadmap about, right and being areas. about but in we'll and ensuring thoughtful know, forward, you know, know, we have for

Great, Appreciate thank helpful. Very you. it.

Mark. Thanks

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

everyone. certainly your interest and today you, We appreciate time Thank AMD. in your

we your appreciate QX. forward we here seeing in in event always, you support a As an Have look and to great day.

does you. webcast. today's conclude and Thank That teleconference

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