Advanced Micro Devices (AMD) 4 May 222022 Q1 Earnings call transcript

Hello. And welcome to the AMD First Quarter 2022 Earnings 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. to President, call Investor pleasure Graves, to my Vice Corporate Relations. now turn over the Laura It’s Laura, please go ahead.

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

contributions page of these quarter we Today will which AMD first If reviewed can February found amd.com. documents, you XX, have acquisition on of be including from partial closed of quarter results they Xilinx, not the the Investor Relations XXXX. discuss

AMD will also on We for basis the quarter discuss results XXXX. a standalone of first

posted primarily We our today’s Computing on Peng, call are refer for on The in call website. Treasurer. full are Officer; measures to conference Su, be our webcast AMD’s our Dr. Adaptive to will Kumar, Officer Executive slides Devinder replayed during Chief available and and this website. Embedded and call. and will Chair Executive Vice on non-GAAP Financial a President via live financial release and today’s of This Chief Participants is reconciliations GAAP Group, press President, Lisa join non-GAAP the Victor will our and Q&A. us in

like to could results information turn Su. our release results the over uncertainties current Lisa? Today’s Lisa at host cause begin I on in our more would the from press to to begin, is as second close contains of our speak would call to assumptions only Thursday, business statements to that, materially Before discussion involve we factors and June and forward-looking current to the such, beliefs, today, Financial note and of statement its risks Friday, actual AMD like as Analyst could will XXXX Xth, I on based time With actual that cautionary and expectations. XXth. to expectations, June differ. Day cause Please refer quarter for expected on on quiet differ that

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

to For the and last several transform AMD. years, we journey have on both scale a been

our leadership journey We took reached months driving of portfolio the fundamentally executed inflection in as of reshape our best-in-class first business. that and have our consistently all XXXX, strategy, few several major diversified our while growth. point We during a business, expanded significant products steps our we

of addition In announced acquisition our financial cannot record The closed to to goals long-term overstated. importance strategic Xilinx acquisition acquire plans to we of the our be delivering results, strategic Xilinx Pensando. our and

one Xilinx and strengthening industry’s further the streams our adaptive product technology As number markets of significantly adds business model. high-margin diversifying multiple and solutions, provider new portfolio. FPGA of Xilinx spending customers, expands our also and revenue computing and set a long-term

its growth our product communications, across adaptive Importantly, enterprise cloud, HPE, Sachs. Oracle expands solutions markets. and large strategy center, Xilinx has Embedded will adoption our center an has other own successfully data years in solutions data increased will silicon of capabilities. proven that the team developed Pensando, With add a we with executed expand and recent Pensando automotive and enable edge innovate deliver to differentiated and key portfolio stack DPU at already leadership the including customers. with for industry-leading Microsoft, technology and deployed to and platform silicon, customers will our AMD Goldman Pensando’s software IBM, levels further further software

revenue the and very net Now year first income. financial strong record we turning our with started to performance, quarter quarterly

doubled more year-over-year six net $X.X grew to X quarter margin of a weeks income contributions year-over-year. both gross XX% We and to billion. than Xilinx percentage XX% from and operating the First including revenue, points record expanded

than and percentage doubled income Excluding Xilinx, $X.X more operating points record to XX% gross revenue a billion, margin $X.X X grew to record billion. a year-over-year XX% to expanded

and by Graphics Ryzen Computing our the processor on products. Radeon billion, sales. compute primarily and to Client based year-over-year mobile double-digit by percentage latest driven higher increased Ryzen strong XX% and $X.X grew desktop revenue our revenue segment, to ramp Turning of

gained recently processor of mobile client compute, latest XXXX life Ryzen Ryzen the our introduced industry’s believe processors introduction which leadership revenue the PRO new processors share our our Commercial, the Ryzen XXXXXXD, of expanded of with featuring by mobile gaming we battery seven and performance mobile for fastest desktop the with Notebooks, triplets. Desktop, extend result, and leadership manageability features. a the processors. was processor CPUs capabilities and security As modern In life eighth and revenue driven record Rembrandt launch we including gaming In XXXX portfolio first processor straight is XD In that Ryzen we battery stack and our processor quarter. the CPU we

growth commercial We number in launch. the our in positioned expanded are to to on based on XXXX of track notebooks design accelerate wins well

we nearly client and quarter, featuring our Data the coming as Although, XXXX revenue see ramp In to launched XXXX Radeon launched quarters revenue large year-over-year, remains is we focus by GPUs our Mobile, graphics strong a were quarters. sales record Instinct as ROCm X.X gaining first and cards year-over-year, targeting revenue of with flat suite the customers double-digit HPC MIXXX our sales. exoscale-class, strong. channel latest near-record AI continue series quarter the and the the graphics our software cloud overall In GPU opportunities was accelerators. and to PC expanded expect share. sales some We you experiencing Desktop market launched the mobile engagements center where over our applications. on in expect in notebooks market year-over-year coming our growth off the we gaming sales softness doubled shipments, strong graphics multiple unit and Graphics, commercial of with percentage grew of portions desktop Radeon premium,

segment, a significant we our by Semi-Custom Semi-Custom continued console to on our prior Semi-Custom by outpace demand record revenue and as strong sales increased game and billion, sales. Embedded as Sales Semi-Custom Sony based and for year-over-year all and to Enterprise percentage be Turning driven grew Microsoft generation server, for well year-over-year a XX% to consoles, double-digit Embedded processor $X.X generations Deck. new year to XXXX business. Steam this Valve’s for expect record

automotive. year-over-year than by our doubled Embedded in growth Turning business, led more revenue to

also secured and networking security We Tier providers. devices firewall design wins X from in next-generation multiple

Turning Server, as double-digit more revenue and had to by record year-over-year we doubled a percentage than increased sequentially. quarter another

Server infrastructure with year-over-year than Alibaba, HPC new as than more their financial in processors year-over-year EPYC of for In in the and AMD-powered are last more track doubled on with growing our including have processor the instances available growth and strong more cloud revenue Enterprise, eight applications. highlighting launched revenue enterprise instances We expanded than launch Amazon, XX doubled coming quarters, instances AMD-based Cloud, XX XXX doubled internal database now in than Microsoft from deployments, to revenue and others. Google hyperscalers quarters. IT Azure, Baidu cloud services more demand There from largest and the verticals hyperscalers, customers. Cloud with infrastructure, the year-over-year key additional

Our in we Supermicro we for the across very the customer expanded the generation. performance strong Genoa sampling all up in We set a Excitement partnering by Dell, continues EPYC sales the Lenovo broad computing the our extends quarter. CPUs rate launched first quarter. end pipeline launched and in our prior to stacked featuring of our win Cisco, grow, leadership saw first to our customers. quarter technical This processors next-generation be quarter. server our Atos, Enterprise processors to and and chiplets in technology workloads XD compared grow HPE, as new continued in XX% Servers with to

second of customer EPYC We continue energy expect Genoa share of and half will HPC our efficiency server TCO adoption. launch and performance the be our to extending processors. enterprise the based general-purpose advantages on on cloud, highest to remain performance, gain industry’s the trajectory track year CPU, expanded expect in the further and Genoa We

of core in cloud our XXXX. workloads higher of optimized to count development to continues processors well first high-throughput track with addition, the begin shipments Bergamo In progress on for half

with first weeks Tier saw in as Xilinx fintech revenue. network We by Turning fourth continued wired revenue Versal Xilinx XG based to straight XX% Xilinx design led in We next-gen and acquisition Versal demand close, the solution. as service hyperscalers, quarter communications led In On quarter Data deployments win the well X Embedded pro wireless, a In Communications transport. industrial, strength the led Center, greater X by across solutions for and FPGA and full straight quarter consumer. power $X regions than saw of record to deployments low-latency growth basis business, expanded billion optical the delivered companies. strong and ACAP with a of solutions the smartNIC equipment healthcare provider and six and was Tier greater vision Xilinx at of demand quarter, in multiple demand a as quarter access $XXX with ramping million. baseband second strategic and automotive, its forma the a secured their by year-over-year for pro was full forma than revenue revenue following markets we

forward, Looking on end demand very are Xilinx supply. the see focused across markets increasing we and all strong

Turning product computing and tremendous we to expect have seen the excitement even of industry, stronger and to from We technology months close, expanded see partners performance and have our best in adaptive in products. we our integration significant first synergies. high leverage opportunities work, engines we portfolio see our and now the multiple portfolio deliver few since the employees, customers, and to revenue to

industry-leading engine CPU inference integrating product As with the across expected to XXXX. first one Xilinx’s example, capabilities, in AI are portfolio enable products differentiated we our

significant our our We by close point the our customers, a needs of results, leadership synergy portfolio bottomline with of can have and additional by of Xilinx inflection with portfolio. start also In expanded of their a now top our summary, execution some as for marked the largest financial and strong is larger identified product driven and portion we XXXX revenue acquisition. product AMD, record opportunities address compute significant

end of markets we Pensando We teams. leadership expect last quarters growth, quarters. delivered than year-over-year stage growth XX% diverse larger journey set I more income growth now that now enable our growth incredibly I next Xilinx based broad net and capabilities. by to of and have approximately more Analyst markets, on am than of and revenue Financial to as sharing a Day year-over-year the up on growth and look addition Xilinx a beginning across compute with annual strong of seven grow higher for June. as we organic at the increased guided well will XX% AMD AMD a the straight now from see portfolio opportunities We about the for TAM engines our XX% greater opportunity at Longer Based ten products multiple year-over-year, for of the excited add technologies across solutions the revenue the by end term, additional forward year. as our significantly expanded XX% demand about in we approximately

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

good you, Thank Lisa, and afternoon, everyone.

The record first the products record start expansion, legacy for in excellent gross flow continued strong quarter year revenue, quarterly was with margin to generation. and an profitability cash record demand our resulting

are we our pleased Xilinx very transaction and addition, have intention Pensando. In closed announced acquire to to the

XX% by $X.X year businesses was the partial revenue and inclusion period. for across revenue consolidated growth ago, quarter billion, Xilinx First all significant up from of driven a the

year XX% Operating Excluding compared for basis expenses by up a XX%, year margin billion $X.XX ago. was doubling was driven year XX%, of a $X.X ago, than more was XX%, a and basis share, $X.X billion, high our Net our per revenue the as increased Xilinx Gross primarily processor growth Xilinx points million roadmaps higher excluding income and business. long-term to year Operating XXX a record billion, product was gross future Center points margin primarily Diluted contribution, Operating by share a up revenue by compared revenue. Data ago ago year-over-year, margin was doubled earnings a income million margin. significant per Gross to record up billion, $XXX higher driven AMD up Xilinx a XX% billion, ago. share a year year-over-year. ago driven we XXX with growth revenue server investments to $X.X support $XXX Server higher margin up were year to $X.X in up was AMD $X.X ago. from processor revenue. revenue the from a from from per year from $X.XX

revenue. $X.X million graphics to an billion, was EESC billion or partial across quarter Now Enterprise segment Xilinx and end million with Computing a of and year-over-year, million turning operating $XXX all On compared revenue year offset The ago. of $XXX operating the $XX up forma was $XXX was expenses. XX% up margin compared for or income billion, segment XX% the XX% quarter higher The driven up for revenue, Graphics Embedded or grew of driven revenue, $XXX million and Embedded business product to year of income revenue segment generated Computing full Xilinx income higher results. $XXX revenue XX% billion and a ago. primarily of higher operating in a the XX% The prior and million by increase year XX% client and million categories. higher income by over $X.X with revenue, increase was million Xilinx were pro growth quarter, Semi-Custom segment first to $X Server, operating revenue in strong or and operating revenue by Semi-Custom revenue. year. $XXX significantly revenue. increased to driven Graphics of driven was basis market revenue $X.X by ago, income XX% major gain. or operating mix revenue to processor segment of revenue by licensing richer higher compared a partially XX% was from

are synergy accretive be to goals share to the per non-GAAP track achieve of for and cost our expect addition We XXXX. the acquisition Xilinx for on earnings to

of equivalents $X.X our Turning $X cash the at deployed repurchase $X.X utilized billion repurchase quarter. short-term balance end were We stock program. of $X.X first the cash, in have billion and to first stock common investments billion sheet, quarter. the we To-date, billion to initial the

up at In the during a first $X.X total same last of record share cash announced flow million, in end $XXX Quarterly authorization quarter. year new million the billion $XXX free the billion the also remaining repurchase We was compared a had to our and quarter. facility. we executed $X credit addition quarter. $XXX program $XXX quarter in was prior from replace $X to further We goals. Inventory billion the quarter $X.X corporate our the inventory. million five-year of commitment demonstrates This ESG million sustainability-linked due Xilinx successfully $XXX to billion, our in a million the prior facility to existing

second will to outlook, financial Embedded, I segment four Before to our reporting. turn of XXXX, Center, segment me and financial to the fiscal which quarter Gaming segments, the reporting Client, following with our Data our cover let we plan change I current signals. demand financial expectations and Day. look our sharing Financial align with our supply reporting our outlook on environment details current markets. and to strategic contemplates Analyst based forward at you Today’s end the global with further customer is Beginning

the higher revenue. of plus addition XX% primarily be expected or quarter revenue The to is billion, second an be million, to by to of Semi-Custom revenue by Client and plus plus $XXX the server $X.X we For expected be of year-over-year expect minus increase Xilinx increase Xilinx and quarter-over-quarter. XXXX, year-over-year increase approximately approximately is Server, approximately driven revenue. higher quarter-over-quarter driven revenue The XX%

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

For full higher Xilinx now increase revenue we expect approximately XXXX, Server $XX.X Semi-Custom driven of an revenue. the approximately billion, be year by and XX% and to

In across U.S. XXXX Fiscal fourth utilization had an all will strong full closing, revenue year U.S. a gross approximately expect net excellent non-GAAP primarily tax businesses. to the rate an be operating revenue, credits include XX%, start to be of in be capitalize week our margin to in XX% tax We the tax tax to to and cash XX%, non-GAAP non-GAAP approximately non-GAAP and expenses with growth XXXX. to additional we and XX-week effective due and XX% R&D to XXXX approximately be be year of operating losses requirement quarter.

business pleased the revenue which are have acquisition, increased margin completed We strengthens gross cash and accretive Xilinx to our model with diversification, generation.

welcome the We AMD. team are delighted to very Xilinx to

turn over that, begin Laura Looking call. the the and I Q&A of AMD for With generation, is ahead, growth, Laura? and to will leadership very portion long-term back to our expansion roadmaps. margin products our by call well-positioned cash driven

question. Devinder. very to ready begin Operator, our we go you ahead and first Thank much, are

first from today Ramsay is Cowen. Instructions] from Thank question you. Our coming [Operator Matt

Your line now live. is

everybody. Thank the and the serve macro getting the you on a you supply very lot a obviously there’s Xilinx I chains markets Lisa. perspective in and afternoon. guess Lisa Congratulations much, Good results. going on closed strong that then from

So, me the bit mean, through I the the takes of half in the I first year doing talk XX%, and first puts of growth you could think XX% kind organic you Maybe the quarter. quarter. a in

extraordinarily obviously doing I think supply some perception numbers in just server coming maybe in lockdowns softening and of there’s China, the constraints printed the There’s market. have and you a in business then that well perception that you additional PC the online. your supply

So and going could? and there’s on kind through quarter you a walk if the lot puts you you. to for me the takes love I of Thank

Matt. Thanks Absolutely, Yeah. for the question.

lot strong say, the have very strength So really at in quarter. the did the would in a if I look first is we our There going was you without a in first business. doubt it on a broad-based. quarter, business

very results. very, server strong So,

the had continue well the we we or of continue quarters of for premium in been client We console the higher Semi-Custom number gain bring the to There and strong graphics results market, softness more the more but to PC the last There are market. businesses. shifting our actually some share, end supply to in is our very online. as PC in as business, segments or mix game also

well Gaming as growth being we Ryzen we ASP our and market sequentially our Premium, our more that notebooks where key actually significant strong just resulted of And covered our PC that’s Commercial segments business in as and as there. growth, exposure of XXXX ramping is. so started And saw in a

things the we being that That the about of talked are I situations play. supply As we in case, through the well. forward, go have managed you obviously, all think, very

our to their our with and and have have another our continue addition We that to are strong demand with additive all ensure business. the of optimizing build work set are we to that end builds markets we very also of customers that Xilinx

you Thank follow-up XX% upside guidance and guess you expect little my I the examine full that Obviously, Yeah. I But in it’s you it oranges for to the so from as I bit original think all Xilinx, from apples some the guidance. given. mentioned growth last Lisa. press release wanted a guys appreciate that question year. year you I organic that, the includes color. have

If have spending then I helpful? you on that the magnitude from love would to you just on would any on And CapEx hear environment also and investors market. comments the Center Data there PC what be your is view maybe think

to I think flattish maybe competition bit into market PCs you some there your this commentary that. coming guys about I maybe than new and some have conservative takes more in a puts being been of your year. imagine

just really thoughts to constructed relative how the So XX% especially would much. on the some guys helpful? year the you guidance Thank original very you for be

Yeah.

in questions Matt. there, of lots So

to but me them. through try go let So,

XXXX it increase So guidance, are up a couple XX%. pieces in first is year on the significant There a full that. guide, to

On January. XX% the we the in on organic market business, in up what guided we side based the AMD of originally saw

supply own online. strong console we organic situation, and the or higher As demand strong in server supply the market very demand in at business, customer driven our look additional see very sort we by our into coming primarily growth Semi-Custom business, our that That’s now mid-XX%s. and of

and segments. more most is on the our of the it’s a a we is conservative in the in on of and of is the market, market all softness taken the the parts think value in Premium have focus the not that add certain I PC parts where market. bit Again, in perspective market We

year in and of half year calendar it’s piece you three if is and quarters add. the the the a Xilinx terms XX%s business it, very pro growing to XXXX. growing In consider addition of full of the forma low Xilinx compared a full-year sort basis, also well a is of significant Xilinx like of On

continue as So, go levers year overall, satisfying with our we ensuring base where of a work for on the is are growth demand think, working and and I to set through that on multiple broad demand. -- customers we drivers that have the we and we growth

the you. appreciate color, Thank Lisa. I

Thank you.

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

live. now is line Your

of myself. the Lisa, going and Thank substrates for the the you the I and on and any directly and are you chain business now as results lot the of points the assuming lockdowns to your in obviously, there’s wafer well. supply are you a bigger first and situation, second two or for the on China impact indirectly, guess lockdowns. the I extent and the congrats supply question What on to China some acquisition profitability pain strong impacting in taking had terms revenue questions completing are quarter?

question. Sure. thanks Toshiya, for the

have environment, supply the months. been last working we on the this for On XX really

you reasons I made from significant have we can significant on we an From of sort the that, overall, wafer of the had own COVID on the progress our lot and one From both on say any chain. good our and situation. it mentioned investments guidance standpoint, suppliers. is. our We supply our a own very would That’s substrates. the get side our increase the haven’t way to support shipments China impact continue we of

that contemplated had customer working some guidance. that and We have quarter some is have in build delays with customers been second our

the to notes, Xilinx, We optimization more to is some of call still continue addition with supply mature and work supply somewhat XX-nanometer constrained. going of the, let’s it, are on wafer above

sort next a as AMD with supply to support scale there, larger very ramp continuing bring working of the your are board to strong to few overall Hopefully, try on our We to supply that well questions. quarters. answered of more as capacity

Yeah.

question, second business. your to to Center you decided It’s have question my great that sure. And was on hear you. Data business. follow-up the For my Thank then re-segment

about classic FPGAs both Center from curious the as well how Server I as Data that. more And in a medium- the thinking quarter, GPU in FPGA the business. guess you are thank and now long-term opportunity as business, of percentage So revenue Center your I how am Xilinx. importantly, you was to Data meaningful CPU, GPU Data for Center

I that in was quarter, pretty engaged on flat deal Center announcement, also I vocal the you think the you there. about And so in more customers, growth team, and then the FPGA Data talked the curious Victor cloud opportunity side, with long-term are prior what think, about mentioned it as being you there was GPU, to seeing but well.

So Thank would from be your any great. update you. perspective

Right.

Okay.

So, again, a pieces few that. to

me side. on Let try color will give maybe FPGA some you then the and to Victor add

in of, second to So said, change as to going yes, the are terms alignment we the give our you segment reporting, more of be to as -- to Devinder markets. quarter

Center incredibly look about very at stronger. of terms have that to of franchise the for pieces in percentage In the we excited for now, longer Data When term low the And you in get is higher call are continuing quarter for pieces on center picture, was, pieces those this it, revenue. mean, Data of we strong, the opportunity Center. I XXs our revenues, CPU let’s terms mention then data the you overall the

with Genoa sort looks excited are the of and looks engagements and customers with We how there. how Bergamo

last as GPUs been supercomputing year CPU us for flattish more roadmap, we us it, We longer-term year-on-year. we We on, so and side. strong let’s did to a about was why GPU are are portfolio and for on that’s the focused are the sort excited similar that what had HPC, of call well.

and stack FPGAs our then onto also then software adaptive cloud stack. optimize And then guys software moving in our are front We continuing SoCs the investments Pensando working very with and and the acquisition. on our our engaged to AI now

with we it also about when as Xilinx, about have cloud I hyperscalers just think us the are gives dealing we are then now an are the enterprise largest edge with or incredibly talking you strong portfolio whether and what talking to is and Pensando exposure you well.

And able and have so optimize that. are compute to all the we engines

of think hear more on strong add to I there. Analyst want Day, you expect the in Financial you Maybe, but some really a to our us at So opportunities Data Center from lot Victor, that? should certainly

Yeah.

a portfolio only have the just side, thing covered but not really strength you The we is the add networking then I you of we just It’s Pensando compute think infrastructure, only right? well. on to the about that total doubling you are the I the we probably throttled have engines, that all be could by applications, in since in kind broad I It’s think could network. with lot the about know, would provide and of these customers overall we scale-out down not a as point solution. solutions do again things. right, And smartNIC and of in

So this. could both we optimizes further. want Pensando well smartNIC, really can I and all do former we And the think, what solutions, even customized the going that’s customers with optimize Xilinx, really as as

for details. the you Thank all

you. Thank

Thank you.

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

is line Your live. now

the market. you the am my Lisa, you lot share take one adoption the Thanks I version two can different of later. be you is my the have question. for with server taking on First, curious, cycle play next-gen Genoa front adoption what’s versus is first in perspective Genoa second will the to And Sapphire help in market. state of Milan of helped take of a flavors continues of the servers? that Rapids to cloud coming optimized a perspectives? the of from two that just server industry DDRX, from next-generation and these bottleneck

how So had so Malan out cycle you generation far? just been give strong sense in the us very plays your this of next success versus

Absolutely, Yeah. Vivek.

and I see way optimized are think we flavors Milan the are even and the getting in and the particularly is and so there different in market we much our more for So Milan XXD that workloads introduced. about center with Milan-X, data servers, today people it XXD or

these for it’s think I to solutions so side-by-side. And sit natural

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think a customer’s Vivek, us is and give to as about that has can way the So more for invest TAMs. more solution this, our broadly grown, our just business will optimized we

the Very question. have I Lisa, interrelated on And three two second market. or helpful. then, my questions PC

part what of several with your PC share. So lot what TAM what a can thought and think year Alder market back are then And versus in new have are the taking they as is mentioned be of of I you times before? sense Lake the competitors that, they this your

I am then, what’s have competition what share wondering what and Thank seen market exposure? of you. something your versus last was So, Commercial TAM the just Commercial it finally, year? So there. today you on And

Sure.

we thinking flat be So, down, we year, of Vivek, kind started digits. low to, it, mid-single when could let’s call the let’s it, the TAM call were that PC

to think how TAM. we other year the approach and given conservative market, the PC are things a I taking more have the this in we some started then of

our digits. we for modeling something modeling are for So guidance like year the full high-single down

happen of lot a and can between things then. now Now

Within value XXXX, I performance a think that on is we extremely that, battery always most to Ryzen product very Premium life the positioned would standpoint. can that’s we where place been us for the or I well model. focused say have add a So Rembrandt from segments. and our good

that in are of Commercial of launched. the process good number a very being have systems We

To in we we we still for underrepresented Commercial the share, Commercial area I and question about know are your market a about that. focus think that, us. that’s and excited are

a right gain we let’s we to even and -- PC backdrop expect of, market call focused will I share that so we the the share and market believe the in sort think, can are in softer under it, continue strategy. process our a from of we overall, segments standpoint, revenue to overall that’s

as in I piece so business many of other now forward. we it So think go have the we is, the levers

we There through portfolio, really business we being at portfolio the overall the see lots the think that portfolio the strength for PC portfolio, as year, go together. looking and I the Center helpful. growth, in and very is Xilinx Gaming are levers of this the Data

Thank you, Lisa.

Thank you.

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

line now live. is Your

wanted my questions. one, Hi, guys. data about to for My centers. first ask taking Thanks I

than you doubled the full have quarter. available supply again again think like that guess supply you the is guys and to there, fulfilled? can more you than So doubled I get more year, business be this can it last if the if it year, for Do do double

Yeah.

Data data think, expect it not can grow every proclaim strong Stacy, going business, am So, business, our that. on CPU few I in level And with continuing that additional I strongly I particularly really we we will confidence our continues work center to quarters. on are to for a to about double continuing very it the The the say is over to supply bring next customers is very to very do is Center be us. to certain demand growth I think and there the that. But quarter. Server high.

Thank you.

PC. question on to For up, just ask I my a follow quick wanted

market grow PC down revenues in actually our client TAM the do your year-over-year can XXXX So high-single shifts context you think your share in your modeling, that for given year? of you see the and gains, digits, the mix full down

Yes, Stacy.

and continue will expecting time that a in so we it’s more are year-over-year basis revenues We a it, statement. we segments to, share on let’s shift the Premium revenue call that to environment and mix grow client

Got revenue to and aside year-over-year Center much consoles like of is it’s client? for minute, Servers a Xilinx things it. more say and Data more putting and growth Servers fair But than

a expectation But strong has what from on in a visibility Server, guide full and we our though side, strong but the is allowed drivers of standpoint, increase business, console true. is, year visibility in to supply have the number an the visibility is of terms strong from just organic an us That Yes. perspective. demand it in growth overall

Got it. Thank so you much.

Thank you.

question coming Fargo. from Wells Aaron Next Rakers is from

Your line live. is now

importantly, for and that ASP also a Yeah. you How will Bergamo perspective am expansion guess we around business. thereafter, about can. are as the in just Genoa, of market Milan-X, in I I think but guess think portfolio. two should trends I think questions. about first continuing the stick the seeing your thoughts we I what about from Thanks curious product about more to Server your forward? my thinking terms of that Server as competitive looking just higher the we to and Server taking we market share your the I about if mix blended trend think question gains, or proliferation the

Yeah.

ASP mix depends more what that Aaron, Cloud performance, the But, the pleased we would it Enterprise mix So, Cloud of call very on obviously am I Enterprise, more any with growing substantially. quarter, in general capability, up it, is the as Enterprise expect let’s between Cloud it’s very more to but versus and are our we we value, more mix. and and look, given fact in offer both

our we going and get the are are products more it, more So that so value of that continue let’s market one for our we to optimize entire technology. across I you and growing tells call capability customers we think to, it that Server get

curious bring the Yeah. quick the Xilinx on capacity second And is, am you as question discussion, model. then I the into

How You scale and perspective PC going from about of that over fungible flexibility you Xilinx even wafer Servers capacity? be how or a to business we capacity think your can product down, just move into think across we capacity mix Server forward. to capacity CPUs? the slow about could of segments about ability am think I that agreements. should your as curious capacity If

about Yeah. use TSMC. AMD sort Aaron, that organic to portfolio the way of Xilinx the portfolio so think both and do is, the

primary portfolio The mature and majority on as suppliers is XX-nanometer on although of use there be well. our portfolio the substrate tends wafer complementary above. are we supplier. more of is the Xilinx very to We similar X-nanometer as some So nodes there

there’s would not fungibility I say, much there. So

his supply company good across from of we supply, of that very online. have side, bringing on are it’s heard making last think, we portfolio. continued XX larger the from feel I we fungibility the good overall And is lot However, the And are backend, you on we the the and the substrate the that over Devinder, I just there have business standpoint very significantly supply much come into use and a to progress months dimension his will revenue and when about our it we is online and demand for online as we seeing much a again it very forecast. well, it as see what and has go to he so and to some you do sort all also of Victor are and assets the to AMD in because team like that’s strong strong that’s I’d come securing of with capacity of looking working backlog builds. invested But we the are accelerate are are

Thank you.

Thank you.

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

now Your line is live.

being and the results EPYC year? maybe the closing orders, just the of great the will afternoon of this much job done of supporting generation a on latest solid business design I in given major Good strong congratulations on of be Lisa, the strong by side all Server wins out how there. And am of on exiting enterprise business workloads the and with all your how Enterprise strength percent acquisition. pipeline OEM as has traction? win wondering, in Server driving is the your a winds the the enterprise Server team driven guides Enterprise big and your

Yeah.

thanks. Harlan, -- So

great strong well so internal, progress the Cloud as on made workloads. have have we we adoption side, on external-facing as So

the about I same the business. Enterprise the We have OEMs at have quarter, in all throughout have this business Cloud mean, EPYC enterprise. as on And pace and the progress also past major in the we grown made as strong portfolio. you said, general,

across still growth I are to portfolios. Cloud-weighted, fairly believe be but it’s balanced that both We going

to And EPYC’s to for I a solution. Ryzen in but catalyze. consumer, Perfect. or catalyze. are and attached they the strong market their when for question industrial, Embedded the I maybe auto, given just FPGA position to aerospace think by here a Victor, markets, infrastructure, defense, comm, you about attached then mean, Xilinx, good position

understand is processor, views. much that maybe so can Victor percentage of the opportunity, solutions an ARM high-performance like pretty Xilinx and the but big that Embedded is sits next xXX to a your either business FPGA overall of Embedded what think I help market in for I So us to larger the small FPGA AMD, believe or get Embedded opportunity processor wanted in pretty than percentage because opportunity

this you take will with actually. I agree Yeah. Maybe I one.

One joined we of things the AMD really exciting about is the that are exactly many of since some they have really done excited that’s visits and customer we things point.

with we And have, FPGAs SoCs at portfolio in is a Embedded kind we broader the AMD business adaptive products. the complete in has in also much been really selling give as and of can both Client the well versions of solution. a the have GPUs Server, processors APUs as now of some more the and areas Embedded even great and We The interest.

what revenue is in really for and things And have even Financial on will going we synergies so roadmap But that differently menu forward. value of we are of terms discuss working at with excited products on Day. more Analyst we the then the are we more which really creating the about existing our

observation. great a it’s So

Great. Thank you.

Harlan. Thanks,

you. Thank

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

now is line Your live.

to you really general-purpose And seen at would base deep have Centers like communications thought taking the processing Server question. think kind Data an about for have to I recently investors been the successful the Hi. I the a as networking in network delivering are at for people communications in think they stations, well way data the Center. AMD CPUs And deep say architecture solutions my processing, where Lisa, as have, edge, other I of think, thought I data base And Thanks the of what Data similar for you you maybe they do the strong? in the mode Xilinx capability. you you see this network computing historically, solutions easier have with or combination for companies historically is wonder, processing doing the add of least more doing kind station have communications there an is, station I that am at at for opportunity very for particular has Cloud? computing and have adaptive And Centers, Data into looks do hyperscale and solutions, where about base and data processing historically that ultimately been think Xilinx wondering, more data moved also. more in

Mark. Sure, Yeah.

generalize I bit So more. and I is, yes, answer the think a it maybe will

best We end solutions put are a to for the strategy of the them engines together of mean, big in believer. then behind and specific is markets. AMD sort sort whole I compute have

GPUs, a the range CPUs, the the just Pensando give adaptive tremendous of SoCs and are our think us we then that I adding FPGAs, from capability. So DPU

So of your definitely Infrastructure, question opportunity to I and Comms there. sort strong a specific think there’s

I broadly there As though, of absolute have these to solutions interest growth Cloud is that for number customization been going basically large -- will allow together. Victor having And what optimize joint there opportunities. it’s and customers, large And forward in edge large some to more of in think more a for customers, see whether mentioned, be trying terms telcos we our these or we compute large engines even or these customers solutions solutions will around to those together. put us

financial Analyst forward look Day roadmaps telling of to more as lot go a are you sort we in how these about of into our about So thinking sort we we June.

How or to solutions versus those may. your your customized I rely of software software source customers, follow a it And you if own kind of that? is up, for community develop ecosystem have players the more sit top to I had. pull as for -- that to how important of open on That’s layer larger Thank on other more everything together you. all versus to kind

Mark, very very, important. so is Yes. software the

And comes stack. software Xilinx all strong with those software of very and important is engines across a

own our have stack. software We

important point, as that open-source. You ecosystem of part that is your in an will do unify of important And will and collaboration is an think forward. be open-source going we see roadmap to the believe We well. part our

that more of provide things solutions to on working all So, our for those customers. are we are complete

you. Thank Great.

Thank you.

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

now is line live. Your

deal. on me dive Xilinx a into forgive question. me Thanks moving of the Lisa, for times, closing Congrats and that ask so them a if a parts, I strong little the you letting of just said a lot have quarter bit. bunch

It just to Xilinx is about side of Take quarter think like digits of out guide, we guidance low-single there. some full the the assuming moving I little give As just you wanted you second your AMD or there. growing parts the and looks bit that quarter sequentially. of get core are the the

weakness. some have PC You the mentioned side about seeing

that and the the side. then You a on on about have talked Semi-Custom strength bunch the Server

any So that puts of the and to about takes organic growth? you get color sort

Yeah. the Sure. Ross, thanks for question.

of sort second the the quarter other as that. on the is quarter business the we them, for would one are full see second second by I server our is and particular, and the side guide of primarily There in Xilinx smaller strength quarter. the call driven of quarter in So business puts takes,

tend you gaming If think be if recall, about I mean so doesn’t about business business, or be to increase. tend second and businesses driver the that’s the you they quarter PC those more strong not to sequential you think whether quarter second the for a of half-weighted, the so the

your when guide, a perfect segue about there, I obviously, impressive. question, full a the incredibly And year I guess in Perfect. think similar answer

up like, full It flattish mid-to-high in especially digits that that the looks and of You increases. just to after single talked year. one organic are kind with that those of quarters extra low to going or the you of kind about get week,

leaning kind question. of single-digit the against drop the seasonality the So similar sort relative there? of What little bit Is are puts and a takes you high PC something you are to half? second that out talked that as given still plateaus years grow the in backdrop have about not else will where you or but past is guys fast maybe as there something in

I business a sort we year, again, if that the see we and the I that visibility to as you of the though continue second grow, give that quote-unquote good plateau, I puts is there. sure What the not of Ross, -- I expect that. say am will the would takes server wouldn’t of so half say I said,

second half We business to would console the also typical the half. second half in the higher have PCs first versus seasonality also. in Typical seasonality. That’s first grow expect half the than

also the seasonal, then more comes sort market online we in half grow expect Xilinx the and supply modeling think I just given the business for the there. And sub to of the all in puts given bit we as a second takes are little strong demand.

you a don’t see I there’s pieces, So those plateau. all think if

see, strong half second think one, supply as I a we the year. more in the also continued and coming of online it’s improvement demand

word. Thanks plateau for for apologies and that the

No apologizes to ever one me.

nice, really Ross. that’s So

questions we please. will take Operator, more two

Certainly.

Our next from coming question is UBS. from Timothy Arcuri

Your line is now live.

really rest a asked been The Thanks the question My quite lot. a bit. is Semi-Custom. around has first business of

I Semi-Custom. an question. think, Semi-Custom there? guess would of do It had So year can pretty be think as for I think And up also get be some I of a up question, my And it be get year? uncertainty, this that to can close then maybe that on thinking it given guess still also it is, Lisa, next sounds part question I But business like do you that the you consumer year a next Thanks. could were billion second year? $X

Yeah. Sure, Tim.

into numbers, say, strong going would a the driver. growth is without So business I Semi-Custom exact the

We have we very with customers work closely. these --

have is. We views they good of where the think demand

the place, towards to their is holiday. a in say still if channel, is are underserved were business and look build We you today the Semi-Custom in demand into would the retail you real that

us that answer this the record is will year. do we So for believe Semi-Custom at a be

have We more content.

see at gotten the again, on -- kind then reviews have that also very you year And XXXX, year. will really ramps, another these half you And into up. Steam of history the we its be I around peak. would the the the has see that that ramping and really the do and of of go Valve Semi-Custom XXXX fourth also believe as is strong strong second business hit for if that Deck year look be We it’s you

game software are also coming is software we strong addition just line go the are -- good of some standpoint that expected [ph] that that, obviously forward. there out, releases and there knowing a -- to a of -- as In from lineup are there’s

the So, Semi-Custom view business. our current yes, that’s of

procurement there’s a some of or just be some of much servers. slowdown debate there there overall in about not you from quote, been the following big and comments up mean so that the on gaining know moderating does some market, I that you investments the customers Thanks about to are some Server cloud going market slowing guess is are because best have read, I lot. But And that share.

you of it strip year? even into share curious out your sort of or just later your So if next all gain, market. the Center Do you strength slowing Data on at assessment am this year overall Thanks. on I see in

Tim, say, haven’t we would that. I seen

phenomena. We needs haven’t that planning. see seen to there What that we good particular do be is

and as So are demand. customers customers planning can that. and large planning from XXXX our our we robust our good into with extends Server well, what beyond XXXX, doing And cloud and it’s extends we see,

Thank you much. so

Thank you.

Our next Simpson question is Research. Arete coming from Brett from

is line live. Your now

to your HPC wanted and can roadmap platform you obviously for do a of like markets the that’s GPU when win we three with be think get perspective have inference on share focused you. how sort big the training, about Thank going CPU much. and next with to two is to very MIXXX, us et the Thanks processor the AI. should on and And AI sort this years, MIXXX, Yeah. AI have you in particularly Lisa, of in AMD and you side server areas cetera? the really around areas you training space? compete years But with got AI inference, I able silicon on host like portfolio, think

Yeah. Absolutely.

where will we it I also Brett, how Let AI comments. question, thinking opportunity we in me about start, and then it’s of for No is a holistically are some terms huge Victor very ask one to and address. us make

done a is So side. CPU on lot the inference on CPU server of Server the side,

investing We have area. that been in

and of our focus and side is our optimizing our it inference, stack stack GPU the there, On large with the software for lot training software a both so is cloud around on then AMD and is to a current on the capability additive what inference portfolio to of then customers brings portfolio side AI and partners. in their And portfolio. the our lot Xilinx actually

start in we So I broader see us a some Victor, roadmaps. the much sort offerings maybe, to of set you want of give as will you product talking broader more? think from about And AI

in in production -- recognition, like mean, this that image into already our number engine of lot cars. and devices are a scaled and edge Embedded look, brought deploying to been product that inference of AI and architecture in have in and have a I we is also we endpoints be same applications that, kinds doing exactly plan. have the They it’s as alluded of we applications portfolio can all CPU Yeah.

a in also a software. around We succession are ago is moment

but are software We in the portfolio, absolutely especially overall on enabled the also AI. unified working broad

computing And will have you in Day endpoints, devices, Financial at So inference be and both training. we end-to-end, the have the and would devices, and definitely are Analyst hear that cloud we I more but and enterprise. because to both in leaning we embedded AI say edge about going

So we about revenue excited that are synergy very opportunity actually.

did you follow up? have Brett, a

Thanks, Great. Yeah. -- Laura. yeah. And

Just as seeing perspective, changes terms a a follow-up, in AMD from are of obviously in big you dressing Software. monetization Software the way you are

next can this as think You or Software? do you you maybe level you. high a how And share do somewhere with forward? plan about to the business Software of stack, might you up think moving going charge AMD abstraction. Thank are a the you years, three software Is for over two us

Yeah.

conversation very a the Software about broader But maybe I as think, around our Software Brett, unified Victor mentioned, it’s important. are capabilities AI very, overall strategy.

there. of effort acquisition very team Pensando, and GPUs the and a do Software strong with they have can also we what have We their around

that Financial engines. more Analyst space in great of So address think can more offering Software. terms compute I total, of and we solution in we should investing these again, you that into we overall much conversation we have monetization will can --- the June. the think think, And that And lot a in as come a Day us then be across stuff, all about see as I as our more

call, will as Analyst And Xth. you on We Thank having Thursday, there. the you, Lisa. reminder Day Financial forward everyone look be on to a the June to

our from thank today’s website. everyone for earnings you And in will We participation be webcast to also call. your

and forward our support and care. we speaking soon. always, company again with take you Thank your As to appreciate look you of

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

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