Advanced Micro Devices (AMD) 1 Feb 222021 Q4 Earnings call transcript

Hello, and welcome to the AMD Fourth Quarter and Full Year 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Laura Graves, Corporate Vice President of Investor Relations. ahead. go please Laura,

our welcome Results Fourth you Conference opportunity copy had and accompanying Year-end should and XXXX the of a review Financial Call. to release to you, and Quarter slideware. AMD's Fiscal have earnings Thank By now,

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

begin, Conference Vice Susquehanna X. the Dan we Virtual Before General on to Group will would McNamara, President Annual XXth Thursday, attend note Financial Senior March Technology that Manager I like and of Server,

and, Day first begin statement to today XXXX March release and more of current to is the cause information Please and factors differ. assumptions our involve the materially AMD such, cause quarter press actual will as only on results speak on and Today's current statements uncertainties at that differ beliefs, based the Analyst to Thursday, refer time XXXX could that its expectations. in from risks our cautionary could Friday, Our as on for results of to business discussions contain XX; on expectations, expected host forward-looking June X. quiet close Financial

to GAAP slides press primarily the refer measures release this to today's website. reconciliations on will We in non-GAAP financial our posted The available during call. non-GAAP are full and

call the hand to will Lisa? I Lisa. that, with Now over

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sales. and segment. outpacing Embedded billion, processor Enterprise, console Semi-custom our to Revenue increased driven game prior Semi-custom Semi-Custom current the year-over-year increased cycle to sales EPYC Turning as and XX% generations. by record continues all year-over-year $X.X

expect We to and for year latest consoles. strong continued Microsoft the by demand this grow revenue Sony driven

Google, than up by We largest expanded previewed another IBM, internal by new year-over-year deployments enterprise performance percentage a Azure In that as available instances year-over-year cloud Revenue driven double-digit both and than Server. delivers Microsoft providers doubled quarter. had to launched AMD-powered instances. more and EPYC increased sequentially, to customers. HPC outstanding currently stack memory new third-gen Microsoft XD by demand Amazon and more our and with Services, a processors others. Turning doubled instance, the more revenue Azure cloud, across XXX than Alibaba, XX% than Web from powered more

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for contributing significant including based year. overall on overall workloads. we percentage leadership exited EPYC the our outstanding to memory will XXXX to Customer We revenue, mid-XX broad the center of codenamed Turning cores products. of another of signals current and strong next-generation and details XX customer next-generation a in to made our we across first and provided data Genoa Genoa growth business. November, with progress of memory X center We XXXX for revenue In excitement year data that expect last is capabilities. our I/O our range be high a technologies Zen processor, next-generation expansion performance as extremely extends feature breakthrough and it up demand

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

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chain growth. addition, invested $X future during In XXXX approximately our long-term share market support expectations we billion revenue in and capacity supply for to

as expectations current not our customer Xilinx addition contemplate contemplates the supply closed. and outlook. transaction to based environment has is signals turn yet outlook does now me of Let Today's financial the on and that current and not global

is $XXX and revenue driven to quarter quarter-on-quarter. approximately approximately year-over-year of XX% increase by $X billion, First expected client across server is an be year-over-year is minus be The XXXX or quarter-on-quarter increase expected million, businesses. plus increase growth be higher X% driven and by to The approximately revenue. expected to all

QX for expense, be to approximately shares. operating count on approximately margin to we effective non-GAAP taxes non-GAAP to non-GAAP $X.X a addition, expenses and X.XX gross interest the and to approximately XX% In be million other be $XXX approximately share billion based be diluted XXXX, expect tax rate; billion; XX.X%;

revenue approximately by year to increase XX%, we across businesses. driven XXXX, all full approximately of the expect growth For an be billion, $XX.X

requirement non-GAAP expenses of numerous be tax financial the to tax records. XX%. non-GAAP had growth the primarily year outstanding tax in In cash full Non-GAAP US approximately quarter US an revenue, net We approximately X% and to And rate expect losses be R&D excellent XX%. our due be and with very non-GAAP capitalize approximately to of be closing, an revenue gross rate utilization effective tax strong margin and operating credits and XXXX. operating XX% we to to to

to products performance. leadership of Laura momentum our XXXX, With for session. look well long-term it back continue turn I the enter position we AMD that, very very to Laura? to growing forward for As financial and year strong growth. another question-and-answer I'll delivering customer us

question. ready and Devinder, you, for first you, Operator, our Thank we're Lisa. thank

conducting be Instructions] from is Fargo. [Operator Wells coming Rakers first session. a now Our from question-and-answer today We’ll question Certainly. Aaron

line now is Your live.

Yeah. on and congratulations question, for Thanks the taking the quarter.

at about could segment thinking thinking semi-custom data maybe remarks not Day, you're XX% know how segment from you. year Analyst think your full relative had or that the mentioned that us that to expect that you or above prepared contribution the you the the whether help server the still grow. if Just outlook I segment guidance, that you that you Thank for provided the and applies semi-custom total had I'm you center XXXX, tracking we're to last in about appreciate trend? curious

the Sure, Aaron. Thanks for question.

XXXX, We I have partners, growth businesses. mean by we've done as our given businesses. relative that in with of current our see server. we'll demand growth from what is growth as strong for increased we led products will well our to so view all The capability see So different for our be supply the the

So all from our platforms from graphics what business embedded our PC design consoles, we next and very and our be business, growth including expect customers other also see strong But and wins and business. that, server our from businesses, we will including year.

through that into to go So go we center of give data to the we as next percentage continue and year, expect as we more on increase the we'll year.

you. Thank Okay.

Thanks, Aaron.

you. Thank

Ramsay next Your is from question coming Matt today & from Cowen Company.

live. line now is Your

Good afternoon. much. Thank you very

obviously, that to For strong team, the and brings on the what whole getting congrats Lisa, Excited Xilinx. close but on see results.

getting desktop go guidance on is test that server XXXX, as potential with revenue I strong around you the XX% supply just walk to away. demand for comfort with and capacity will particularly visibility new such you questions chain back-end specificity, comes give and that upside, imagine, there's more through One and stay us of I'm online. as little package, just the X-nanometer kind coverage the for in wafer start, and take maybe done substrate, greater the there people of X-nanometer. capacity that won't and a than It a of around around you've the can in some things tonight

all sure supply. Thanks. the want the I So I just in make variables around understand confidence to

question. the Yeah, absolutely, Matt. for Thanks

on or been last that the for four we've five knowing chain product working have we from quarters supply we from a really have that growth visibility the standpoint the the customers. So and

our demand very there. to goal the your we've environment, as as regards We capacity investments satisfy wafer supply XXXX capacity. and in good So to made have meet capacity to out feel enough XXXX in frankly, And back-end about the supply the is, chain supply on guidance. well to question in substrate our progress significant

is are continue we that need. customers grows, XXXX, to we've to what forecast view our and we know And because our our going capacity So as XXXX, but on. for the make they work to partners our ensure investments and beyond need also to that, with we're likewise, what working been continue for business that's plans to and

Very good. Thanks that. for

as sort while and strategy Lisa, a of it's been products more X-nanometer I as you branded look have out how Infinity the you what Just guys many a CPU quarters, about next company hearing AMD together. Thanks. Fabric. in to how portfolio, and a A+ I've follow-up, more, include as and several growth? desktop server in and guys importance that out conversation those your of And for you been will in would the next-generation characterize you and wonder over combination A, the GPU roll --

Yes. we're about X-nanometer very products. Well, our excited

for critical. well for I continue with really Infinity road And as optimize think work Fabric and map. of the both AMD our top that very then the as us together. allows road is to ecosystem It's a CPU focus this of client X the just server and is GPU year map to sort Zen on our

or discrete AMD APUs GPU side, on on PC our center center on when data the the software in with whether with the plus have EPYC products, plus we data high-performance graphics, side, So working our computing our top.

important these overall it to we element very just goes into -- the as of differentiate important is go and to platforms. strategy, it portfolio, new continuing an our So with

Matt. next please. question you, Operator, Thank

Certainly.

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

now is line Your live.

upside the computing question. in computing At just a about Congrats want on you the least I portion the a of talk to model, quarter, the fill demand. to guide. and ask talked for client side. according lot you channel a results me that the was quarter the my believe, in sure significant the not and I last about to ship segment, after, Thanks Lisa, Hi. make strong wanting letting strong

So gives importantly, you're appears that And Can gain, for bit that sector. you about confidence gains look what little as talk planning a in term, continue please? in that it more near share perhaps what significant you changed? XXXX, into the share for the to

Ross. Sure,

doing customers in question with about Computing our very Graphics So segment. what Look, and focus they're is your to our market. closely the segment the be and aligned this in

very So we've and sell-in and sell-out monitoring carefully. sell-through been trends

saw the And premium quarter much fourth that market ultrathin. very the result product demand I think in in gaming, the strength. commercial, of sort strength nice saw at was we notebook of a continuing the premium part the of very we

we performance match bit demand. guidance, end that So the was to was believe that our a we original believe PC above but user

into story. again, same Going XXXX,

I a strong XXX the units. see think what shipped XXXX is, -- was year PCs. the for we approximately Overall, industry million

will XXXX our roughly education. think standpoint. example, and is will low that end premium there I be stronger some changes and mix from being for see than, flattish unit view But in a enterprise we with

share we gain. from the Ryzen strength XXXX series at of that It's our believe revenue So it's can CES. our we standpoint, just that we launched

XXX We all And customers. have we OEM visibility have with good customers on that. in the our working platforms of from pretty

out in we'll we've with and sell about good is of And I the all that PCs, again, in we think about that of ensure But made inventory we So so there build frankly, diversity, portfolio. -- And to progress in and we're it. like will business. I is good not grow. the one matching the client our that feel businesses continue sell in the feel business

the side color. the follow-up for pricing Maybe on Thanks a the quick of equation.

the that grow sort it margin? think impressive you guys think but year, about tailwind Is for a don't any guiding within you we know pricing of strategically, getting Conceptually And how plus you talked tailwind have I about fiscal You do the about roughly, for targets you're if to of and the that Is year. a something along? the as out that pricing? supply give you'd gross that? precision, how pass XX% do to enough to

some way chain. that's think of demand. the And expected the Yes. the pricing to would on Well, is price satisfy that given to supply be about increases putting has all the seen say across amount we're to strong as I the industry capacity

think And to as So that the for working as the a well kind that additional focus we're long-term supply always share chain and have in But even about whether is what of in of ensure our our supply from in in growth we've on the you the partners business. we to standpoint business underrepresented with meet costs. we or this the to customers our demand. the ensuring today business. you're the I find way with underrepresented seeing growth, the the high that all When kind we're said our always business, is of talking server look we're model you're PC the still

in believe that that product are our so can we strength and environment. engagements we customer And such this significantly our grow

you. Thank

Ross. Thanks,

Thank you.

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

Your line live. is now

year my get Lisa, server versus this I taking wanted in question. for to landscape competitive your last. on Thanks market thoughts the the

competitor seem is tended Sapphire Your excited be which platform. adding lot in Yet the is to They're in launching spending, Intel coming about past, enterprise a also They Rapids capacity favor fabs. very back. has of at their them right, that. to their

thinking AMD's share about servers in this just more I'm you are curious, to gain ability how So year?

Yes, Vivek.

that the happy seen aggressive. that's the look So of I see in way That as the and forward, we've year. we case, we sort to business. expect cloud very the being with we environment enterprise. competitive look, both and strong the our very be And growth we're opportunities business And plan always very last in think we

we're using side, cloud world XX the in of in largest the are the AMD. hyperscalers On

the they're generations, get using they they're workloads us AMD expanding familiar multiple with on. that As over

and in XXXX. that here workloads. doubled Enterprise In So internal see the we across segment, external we year-over-year

people support more add with We continue architecture. familiar our to field get more have to

strong We relationships. very have OEM

there. about market. within significantly than But grow a business. competitive good feel we the that, very And center we secular business I And can is very think faster data So server out growth our trajectory. it's the yes,

right. All

tough a and all has Lisa, looking my I'm you sources time semis shortages. went through changed a So industry help customers relationships last looking So roadmap very the used for how semiconductor to supply even shortage into at with the this done your who given to follow-up, the of stronger and the way historically? more that year AMD year, build the just curious, are execution more perhaps are today at than supply? customers in how on reliable is consistent you environment they look what

Yeah.

most the consistent are important Vivek, on think, that execution. working thing we I with our really customers is

look so us much supply-demand when work the And year our and caused you imbalance, at of has the it more some actually customers. much, with to last closely

out. I talking in quarters think now multiple about we cases, have years -- and, visibility multiple some we're

For that the we to, the that about talking the of do the talking capability support to that type need of customers all plan to to that size of for have capacity to we're we're capability.

deepened think with I the we've chain the supply the customers. our relationships way, by overall, And relationship partners. also, we with the So have deepened definitely

So food the needs of come I deliver demand strong together out think entire to the the entire there. very chain on that's sort -- to

on. we've So been certainly what that's working

Thanks.

Thanks, Vivek.

Thank you.

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

Your line is live. now

Great. two short-term and relatively questions results, as the Xilinx. you. The I question. short-term had on Thank on well. One Lisa. strong one Congrats

guiding sequential Just revenue, revenue on QX on basis. a up total you're obviously company

contemplated your in CPU Is about talked Your if seeing guidance? is the quarter. that in that And you're in that nearest the something corrections competitor so, market? inventory

Thanks question. Toshiya. the for Sure,

down and up. is sequentially. normal supply the guide and we're just our patterns is actually such so on strong seasonality, but additional demand we that's have that Usually, in board, coming given yeah, why So we're sequentially, QX demand guiding sequentially are up

inventory whether believe relates or inventory, channel. products, at in retailer CPU or we our the is don't there our any servers, significant in whether As PCs customers in it to of

that matched been standpoint, very from we sell-in So and I watching patterns, end-user to we're think and believe demand. the sell-through we've carefully

as Xilinx. your while announcement. my and And customers. on a It's bit back quite had with your forth since initial quick Great. follow-up I'm you've sure of a been

and a know, revenue thing. been all? performing your at this to waiting as hit the you're going still time sort close has forward How monitor synergies they've You've on stand-alone had potential of I evolved technology company how the view and to company. the

but say Thank it can't have as too you maybe Xilinx. you. much, to your on relates view So evolved curious just things how

excited Look, we about We've I to maps. Yes, for that over the to extremely talk think absolutely. customers been I'm road time. of very about very us of anxious much Xilinx. about had ours, their I integration this say mean, have combined planning their well. would business very to that team. were strong very, also sort week, last And it's we technology When business have, the it doing and period they posted is very, just complementary very results

So to we We the be combination as more look lot I you close telling very it, exciting. is think a and get going to about to forward beyond.

Thank you.

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

live. line now is Your

of couple Lisa, ask question. a questions. a guys. me Lisa, thanks afternoon, letting Good Yes. for

if change sort perhaps than better and better view year, of do thought, sort your work? your you be gaining the worse planning of the come the were just help to and to throughout have me supply share. I of in mid-year chain you of is bit a move towards does i.e., the ability understand server But little capacity year math the event understand rejigger I'm this on flattish PC market that that that a kind your could CPU? you to First, wondering How fungibility with mix and that

John. Yes,

worked fungibility capacity corridors that certainly various have. very we've the hard to we give amongst So ourselves

that and all factory bring-ups of and qualifications numerous done we've cross So new stuff.

a what there make allocation -- on weekly based that not fungible, it's an dynamic decision say ability the it see going but would businesses. there sort I And is So is XXX% we -- on. to of like different move across we

signals good us sort So on. the I of pretty And a think pulse giving And customers of our on are understand have sort on we basis. what's going regular market. a we

be puts think, as I And through of year. and we the manage able the we'll all through at to so, takes go

now And that at data kind that of data does and does center your question, a just the growth for GPU. to sort the GPU inside strong of that factor you've year? more of get help helpful. Where EPYC beachhead second my expectations sales And cycle That's center, penetration? then into on this created all

Yes, sure.

the data data cloud So over a about family we strong we and for key in very us beyond supercomputing This MIXXX a several was of year year, had It GPU wins. launched it's years. large had XXXX. expanding sort the and view it strategic for growth HPC of center GPU, vector center next about several as year wins. as our of for the us sort the a I sort large

think is need. these working a a about is helps well sort now think good about good. investment way long-term been I pull center do to GPU. your that more I accounts. of the is EPYC We've very of the that gets them this data hardware one with software. sort that us. our think is tool very question investing ensure in We've in established us But chain very, the customers with been for is, it they The the performance our to that

made driver, with this I would say, a is And the progress I'm certainly this through pleased last we but longer-term so that year.

Thanks a lot.

you. Thank

from from coming Curtis is question next Barclays. Our Blayne

Your now line is live.

preamble I question. my and and you strong and in side HPC. for kept enterprise on trends curious thanks Hey, the cloud the clearly EPYC was taking

Just curious channel. comp on the

that release the progress your recently kind comments you press servers. know early a haven't It's design area in had of terms of you last but You days, I it's in of there? kind really Nokia. any penetrated had of with kind

very the Blayne. very we're It's that Nokia Sure, happy with But partnership early. yes, with still was announced. Yes.

area area an we're we're is this in building said, the where It's cycle. where you early As an relationships.

but quite just feel you And XG. things this, but I one say and good the then about still ask I with so And would it's other didn't of the there, communications progress early. the

into Xilinx bring very equation, deep they a with have also these we number the accounts. of As relationships

And so as incremental we we about in an EPYC see communications. that as think positive

like strong And very just seasonal follow-up, the on Semi-Custom Thanks. maybe the anything been the pretty of It's end it had a year. but typically then you trends for And decline. typical. seems March in my guidance. has

am I probably I'm of guidance it's provide I So think I'm kind curious versus but terms March of just that normal within just you of -- kind in that levels. curious assuming can down,

just helpful. If you be tell would that anything, could us

Sure.

primarily is for by QX client. sequential guide, server also up by the by So being and driven then the --

into continues down. seasonal patterns For significantly first as said, there. Semi-Custom, we And additional support our to strong, you customers to flattish the it's it be product and normally year, aren't is quarter. it continue And Demand -- the this there. with is

Thanks, Lisa.

Sure.

Thanks.

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

now is line live. Your

Thanks guys. for questions. Hi, taking my

pass how those want the it. But Like don't I the growth revisit it of are answered in I it a I environment, What's much? tailwind quite XX% of the none? much question. it's I costs Is pricing fair get some? XXXX, how think is your along. First, pricing? number? get up, I going the to inflationary you to mean is

I Stacy, exactly. to that answer I sharing. I is But what going don't Look, what will we are think I'm say before. said

growth a long-term is As both supply we go the through have But this is products. environment, doubt, predominant customer to side on key the the the without on side. relationships, chain and

the mix growth. So from that's of the product, the it's and units and ASPs predominant

Okay.

Okay.

For year? a right why apologize feeling my given from guide I QX where give to, shouldn't you seemingly and the picking Can I I gross gross we bit feel Like margin honest, QX bad going into the be versus be given advance. going? better going of XXXX, mix to year-over-year some that go the quite Like in higher? us about doesn't I expect margin, anyway. now margin am sitting guess, where getting you're I in is upside that a to drivers, QX why you're through follow-up, even more XXXX sitting so on almost at should XX% but just mix in But me really XX%, the mean, look, I'll

I can Stacy, take Yes, that.

XXXX, would talk of think Lisa way did and QX is sometimes particular any it semi-custom looking going to We in not And expect QX, about It's to an you we're heard long-term. you As really, XX-plus XX% is to right? I increase, kind quarter the product do looking percent in mix-dependent, it's it. look the of but flattish. at to within And and and in that's, as to product the way a as we a the that the very mix Stacy. graphics XXXX. you better business, margin guide of data at go better standpoint, as up to the center I client think, get look at company continues it in a steady it, if grows, from at way

guys. you Thank it. got Okay,

Thank you.

Mark next Lipacis from coming Jefferies. is from Our question

is line now Your live.

taking like to processors. a you're together if Could it tweaking Thanks own yourself Lisa, in And more Devinder, customers what your Xilinx one customers co-designing one seems or on own you with on about just that effort? threats does specific if I'm working my designing like role I Hi. that Lisa on customized be are role had wondering, a something is processor customers for your for provide it their I with may. talk play to your for that. -- potential have the questions. -- and would players xXX I one of don't know solutions, hand-in-hand? the doing merchant AMD

Yeah, Mark. sure,

-- with had So consider guys work model, their to a console actually, we've the specifically for evolution -- it's the application. we it of It's area. semi-custom a like just always do an very exciting that design

some broader As that a of stool including of set leg relationships. of these customer believe center there's we applications, the in of sort next deep applications, data look terms do of we the the at

IP cases. imagine do already customization much but we and those points, specific justify because lot does customization of it optimization we incarnations additional applications customer requiring for so really or can up as of a end both really different SKUs certainly product our IP volume, these to optimize, around So really

don't And of Devinder, Yeah, I back got a Devinder, you. talk XX to a years Thank worth hear have you stock. buying may. dollars of you. if think expected lot five, people for billions about of ago, I follow-up would then

just where in recent capital or return a you. AMD flow return? our this return some Where in looking So of X-percent question a evolution going to point to AMD opportunistically back congratulations that topic at are on is capital this policy? of is, in push this you're progress. you terms on The Are -- evolving into where where to of say, shareholders. the buying Thank -- we're is cash stock, companies

the just also started. started future, and an $X.X there yet. then To evaluate evaluate billion long-term XXXX. business we're your program. volume that XXXX, to I in of I We'll think billion our from as policy, what about do the those certainly, we -- the early We out another question it years business, did our are billion. overall the quite repurchase next share here. in confidence $X think close we We look transaction of purchases and outlook part $X just few standpoint in we don't the And in as we

you. Thank Fair enough.

Mark Thanks

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

now line Your is live.

you. Thank Great.

constraints severe You've supply. obviously still AMD like you done others? versus the of a any it end markets on of in great job is seems of the relatively any Do bringing the see kind being more But tight product of everywhere.

overall, we in I supply. larger demand a Well, of Joe. is Sure, mode been think than have

through make will Although, especially we expect incremental XXXX. made I through a to lot of And progress, more progress half. capacity second come in the online XXXX, really

definitely and we more that So our loosen And I bit. our I sort as about think go the see we of working you But a it's on it really spend up we're we're getting that satisfying think customers' should -- year. trying prioritization decisions supply to through ensure needs.

pretty server that XXX%, for then big enterprise were that follow-up, within I it mix give has and both And think, business, within of good. my you you versus you. how about enterprise some of enterprise Can the seems over sense cloud us become. mentioned, which cloud up Thank Great. talk qualitative

Yes.

nicely. mean, grown I still has enterprise So cloud-weighted. we're

these to basis. year -- look you if a it's look sometimes on better patterns, full So

as to number progress. nice we across made of a the relative a But as business, sizable enterprise. well has still the regional So It's and with progress made OEMs really enterprise -- OEMs. larger cloud-weighted a are we've

Great. Thank you very much.

Thanks.

please? time -- We have two more,

Certainly.

Caso is Our from Raymond Chris next from coming question James.

Your line is now live.

evening. Good you. Yes. Thank

some some most recently have product coming you revenue you, that incremental does Do the it? variants processor come What's of How the Bergamo of that the give First strategy represent help those variants indication out, and question the if behind could line? AMD? help to is, Milan-X behind up. strategy

the the we gotten our portfolio. we have differentiate Chris. I strategy product Sure, we think more more further can invest and as business, to see Well, scale ways is, in

does that and end. So is really of that, a we product Bergamo then for is optimized the I And technical of have differentiated line. us some Genoa. mean, we And have give Milan-X highest of see very EDA regular the product. cloud. really And I the think for Milan these We'll computing sort highest workloads that

the so are customer, a better large. to we well. expand many will data standpoint. is Chris, the more is statement, So a us by a workloads get broader so I that, as hopefully, cost in for variants, opportunity There do market that can and you from workload larger believe it total gives give think optimize. us different footprint I share that And center doing footprint and, a Like, these better actually ownership them give the solution of

Thank you.

with you're to that up some But now. supply? the to question of is the supply As a getting us comments. a can your follow-up, with follow-up you the back factor procure that Is that are coming it it year, make to be obviously, going last customers needs right now you backed able and up in foundries how on just And about business to of the business earlier you additional approaching tell requirements you to following then for as your you're and time those when commitments? commitments better out was foundry. it? And Are by the need event in the supply the customer to additional turns

which for, set standpoint. customers than would from demand a out have chain better it, I we had say goals. but and customer our with XXXX We've have partners. growth ever let's very visibility work road frankly, Yes. supply regular aggressive that We we a basis just map call on our not beyond, allows, a

good And that going but there in to confidence be what are us is needed, always and pretty so terms some gives of takes. puts

the goal that. to with and of dimension have end is customers what our we're to demand And to and At we evolves. that's want so But to we success day, demand, is so dimensioning customer the enough as their work flexibility do satisfy for our do success, right? for we want

you. Thank

Thank you.

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

Your line is now live.

afternoon. Hi, good

various your end diversified and but Embedded across business. not a markets, about, to your leverage ask great leading it's can wanted you often right, also edge Just market, portfolio. talked It's mature about

targeting Embedded. got good and lineup of the You've FX-based processors a pretty Ryzen-based

markets. years? coming part in today, gotten networking, AMD exposure in like signage, edge retail over how in with then design automotive you You've IoT do consumer in but of their Xilinx, guys the several got of industrial And leverage really traction wins looking you've a some also out opportunity end the Embedded platforms. for win wins It's pretty business see next good sort the automotive small with can you digital Tesla, with

Yes. the Thanks do usage. volume channels. for smaller, of It's but portfolio. just Embedded and they've over They've their their I there focused usage part very of the years. business the key wins good on their the always expanded set recently We've a automotive I many as synergy of the a question, is a and Look, It with I've has think markets. design grown is it And nicely. expanded like product nice, Harlan. business. in over liked sticky business. networking Embedded Xilinx and terms the storage sort customer in broader now

very And go our products client our good so grower products. for it, from server we well as us a as reuse through as as see and I it nice there's do

Financial So we'll of when Analyst that a our little June. size. -- again, talk will gets as conversation more about we that it business we'll to in get bit part the to talk more And Day be

Lisa. Thanks, Perfect.

you, Harlan. Thank

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

fourth very and seeing of for appreciate XXXX us Everyone, our thank forward earnings you your to support much again full look our company for and soon. We you joining year quarter call.

Day we great reminder, Thank Analyst Financial a Xth. everyone. you, year Have June our this a day. will have on As

That today's teleconference. Thank conclude does you.

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