Advanced Micro Devices (AMD) 29 Oct 242024 Q3 Earnings call transcript

Greetings, and welcome to the AMD Third Quarter 2024 Conference Call. [Operator Instructions]. And as a reminder, this conference is being recorded. It is now my pleasure to introduce you, Mitch Haws, Vice President of Investor Relations. Thank you, Mitch.

begin. may You

release welcome Conference and the Third XXXX earnings Quarter to slides. Thank By to now, Results press our of Call. a had the you Financial accompanying review you, copy AMD's and should opportunity have

the not Investor they the to review page of amd.com. If can had these found be you chance have on Relations materials,

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

on are and Chair Hu, Chief Participants call and and replayed webcast Chief This our President, will our conference Lisa Su, call via Treasurer. on today's Dr. Vice a and Executive Jean Financial our live be is website. Officer; Officer Executive

Norrod, Business and Manager, attend TMT on Hu Before Thursday, we begin, the will I Solutions, Tuesday, Jean December Global XX. would Annual Forrest Vice Data December General Executive like Technology Center will the Barclays that to UBS attend and Conference on X, President Conference note

Today's in as of for based discussion our Please the only and as materially involve such, actual differ to expectations, and information uncertainties that statement release differ refer materially. on assumptions cause risks and factors actual expectations. results contains cautionary could from current could today our speak cause beliefs, press current forward-looking that more to statements on results to

to over the Lisa. that, call hand With I'll

demand top and in growth for robust by processors. and to coming today. EPYC Instinct driven product line afternoon all delivered Mitch, bottom PC good Ryzen record sales strong you, the listening with expectations, Thank third those in our above revenue quarter and and We

X.X Data significantly product as more Processor declines sales Gaming year-over-year doubled. per than and expanded by a Third than percentage Embedded record quarter to Client points XX% and revenue revenue earnings $X.X more Center XX% share We increased margin Center and by billion Data in gross offset segment as sales. increased higher year-over-year

a providers accelerated. to across and the We we increased of Data wins initial segment CPUs use EPYC believe fifth-gen share segments. become choice their performance delivers advantages data Center our began the record to gained processors. center Cloud $X.X multi-generation server we and expanded EPYC enterprise revenue the infrastructure, XXX% Enterprise Turning of portfolio in as their EPYC product across CPU and billion. CPU modern the significant and leadership the has every for quarter virtually workload. cloud TCO of ramp

many alone and XXX, million Salesforce, In including cloud, CPUs power data media has of at fleet Meta across to services, EPYC teams, scale power their their many social more most Facebook, more. deployed than are center Netflix platforms. global Uber, Zoom, Office deployed important CPUs X.X to the SAP, EPYC

stacking requests X per and general with performance industry-leading to second support power versus watt twice their that per XD technology servers processors higher next-generation as selected our many prior XX% deliver their Cloudflare chiplet generation.

Boeing, Micron Public the year-over-year cloud the as with wins their with instances more Synopsys, Nestle others. highlighted grew EPYC in and EPYC AWS offerings than customers also quarter. Adobe, Enterprise expanded quarter, to launched adoption Instance Microsoft, others in processor-powered increased or XXX by XX% Slack, Tata and

are range broad XXX last EPYC XX% that now by year. optimized platforms have a for sell-through and and a year-over-year momentum of There Lenovo workloads. straight Enterprise, grew. CPU HPE, strong the grew percentage quarter the in adoption than the offer as In available the sales others EPYC different EPYC by and accelerated edge for enterprise solutions number fourth-gen Dell, fifth of are double-digit expanded they more

including Truck, companies and financial the Siemens, services and with in others. wins building Enterprise technology, FedEx, quarter, strong Daimler Airbus, are Walgreens We third momentum customers, highlighted with large in by large the quarter automotive energy, HSBC,

scale performance and scale-out for the up absolute for business our performance EPYC set this applications fifth-gen ODMs. platforms enterprise more all in both Enterprise business server These workloads. World from leading database, XXX month to efficiency virtualization, a full a has OEMs earlier Turin development and top optimized leadership complement stack records and family of and More fourth-gen applications. range launched than accounting bottom EPYC next-generation platforms delivers Cloud-native energy that the with Records. are AI, Turin more than across new We performance already existing TCO than XXX for XXX servers providing platforms of EPYC broad portfolio

EPYC of announced our advantages early adoption OCI broad year, fifth-gen performance with next and the In we to significant plans Cloud, expect cloud based Turin. and on instances Google and efficiency largest launch customers

delivered As that Oracle's and capability is compute double delivering EPYC with core, speeds a networking possible bandwidth the performance XX% XX% of per higher and only performance instances CPUs. Turin an example, faster memory level

are ahead, gains well momentum growth EPYC we continued Looking we have our on for strength very built in positioned Cloud the share portfolio based broad the and Enterprise and customers. of with

across to with and xXX an the platform accelerate group architecture, enterprise xXX advance by a advisory We and forming several largest step interfaces and choice for of PC major and developers as quarter the architectural driving consistency industry instruction and Intel, also compute ensuring xXX ecosystem set the to cloud took leaders both innovation a and compatibility customers. luminaries the we in evolve

GPU Microsoft business their and MI powered co-pilot the with XXXX by quarter. of customers. expanded ramped using Turning XXXX cloud, Data the MIXXXX GPT to to broadly workloads AI Meta is expanded multiple internal Microsoft X revenue use for now as their of services our MI in AI OEM family Data accelerators and Center adoption Center models. power

inferencing MIXXXX XXXX to for the using live all frontier traffic to broadly including serve and exclusively XXXB most they demanding Llama model. infrastructure announced Meta optimized power their MI have scale, at deployed

expand working their Instinct offers training. Meta MIXXXX deployments We to advantages, are closely other where also to workloads with including TCO

the power services, providers including performance multiple MIXXXX and AI, instances cloud offering instance cloud most strong Fireworks many public expanded leaders MIXXX specialized availability for of the AI, is with adoption quarter with their and multiple Instinct Oracle instances industry and Instinct and Luma AI with models. used models start-ups Essential and Databricks. widely in Microsoft, to cloud AI instance now Cloud leadership TCO adopting

since launching the accelerators MIXXX the have performance. at and up the the as as AI on increase every than more of out maximum and fast customers Instinct with software functionality layer On box months ago, models of million, out-of-the-box of expanded we get number to that ROCm XX stack to front, run X enabling running possible

X.Xx their X.X customers of marquee customers XX% Enterprise number since higher we Cloud release last inferencing compared are has of has With and libraries a working expand the XX%. launch, to performance source vLLM Triton. We growing broadening to improved many hardware-agnostic work open increased with with compilers frameworks and MIXXXx MIXXX performance trading and we JAX, like closely competitive performance quarter, ROCm community, specific our offerings, to for for fine-tune like seeing workloads like key inferencing the continue and with support --

AI and technologies of advancing SGLang, the the foundational this at work support the were scale. and event the are AI from and have software that now broader who support with software alternative our most growing joined provides enable Instinct ecosystem working broader be important At this developers With software stack, our earlier TensorFlow AI the for excited a by open has in have leaders of software Stack, been validated platforms. vLLM to to Llama ROCm truly AI we Triton, month, and added ROCm deployed made some creators and into with significant community advances we open source

and world's to systems To capabilities, the capabilities rack to providers software the of a AI AI team expand infrastructure systems silicon ZT deliver our we of agreement critical level acquire companies. solutions. to ZT computing expertise and definitive largest cluster leading announced The one our with Systems, complements needed hyperscale

at systems AI customers to parallel, deploy our OEMs ZT greatly and Enterprise center module deploy design instant accelerating With provides as has optimized time rapidly range at been with scale wide infrastructure and scale. and very the solutions. a hyperscale Customer ZT able differentiated we acquisition designs and in AMD positive ODMs silicon be will board for accelerators to feedback data and validate of AI next-gen enabled to

close made we waiting recently as half progress the of We for HSR good first XXXX. to we required acquisition the U.S. On regulatory track passed the the approval. remain on front, period in

to that to date. parties data business transaction of infrastructure we the are center at close number manufacturing As we a U.S.-based have pleased received plan of ZT's a industry-leading reminder, significant and the divest from interest

training Looking advantages launched bandwidth GPU month starting MIXXXX of widespread availability system partner Dell, our this ahead, start and delivers and we XXXX. competitive quarter is HP, Super higher Micro Customer first inferencing Production and MI-XXXX high. XX% with performance. that in this to next-gen earlier planned to extends for the interest are Lenovo, shipments from quarter others and and capacity HXXX memory to performance compared up our

have to Instinct Longer an cadence new -- products. product deliver We annual development our term, accelerated we pace of successfully

the next-gen XXXX looking MIXXX-series in we and very good largest is second launch performance Our silicon delivered. half in have to on AI increase of with generational ever is the track

MIXXX based launch. well XXXX on architecture a Development towards series also progressing the CDNA on our Next is very

our across Enterprise an of built business increasing have Cloud, across expanding significant momentum deployments We AI center data set and with customers. AI

$X our expectation we the in $X.X Center July XXXX, result, revenue guided started now year. and to from when exceed up of billion a billion GPU billion expect we As Data in we $X

Desktop generation XXXX by Client Zen creation grew sales channel Ryzen performance. increase that $X.X our billion, the by notebook significant for percentage leadership productivity, and driven processors. our year-over-year, strong processors to gaming Revenue double-digit segment. an Turning series led XX% our desktop of was launch latest and deliver by X content a of demand

track across gaming November processors strength seeing are next-gen to with Ryzen We Ryzen our desktop XXD on and portfolio performance. launch are our X,XXX leadership in

consumer from others with as Series performance. and notebooks Ryzen mobile, and Asus sales XXX announced new quarter AI AI compute significantly Acer, prior HP, Lenovo, the commercial leadership ramped and In

in Mazda, with Volkswagen Enterprise quarter, other progress deals We large PC the AstraZeneca, and market made presence Bayer, closing customers. in expanding good our multiple commercial the Shell,

Lenovo of security, in and than Microsoft XXX Ryzen will We share Pro AI and have more no in well of longer that starting Plus for Pro manageability we PCs gains CPUs they receive PCs. number the millions commercial more market track to businesses Ryzen enterprise-class platforms positioning XX Windows capabilities AI XXX than also support on triple year. XXXX, our us in the CoPilot and expect Series the first XXXX. technical refresh for of next hundreds as AI offer to with HP family, Pro platforms AI are Ryzen launched

turning our inventory. million. channel declined Now as and segment. to declined Semi-custom year-over-year Sony sales Gaming Revenue Microsoft $XXX reduced to XX%

Sony new announced semi-custom tracing featuring graphics upscaling, partnership. our the AMD in a Pro AI-driven significant PSX SoC performance increases multigenerational and with and extends that ray

transition X architecture. RDNA Graphics, our based prepare as declined In on we to Gaming for revenue our a year-over-year Radeon GPUs next-gen

AI capabilities. a significantly in higher In addition tracing X and increase new to delivers strong performance, RDNA adds ray performance gaming

track We launch on X XXXX. in first RDNA are early to the GPUs

to -- Embedded We segment. turning our

quarter softness offset family in Embedded FPGA $XXX the of SoC demand by SoCs, strength VP by the our decreased world's the and Versal in of XX% that continues gradually, by led differentiated for Momentum to XXXX, recovering in all platforms EDA is revenue which is strong industrial adaptive for vendors. adaptive ongoing building market. X our Third year-over-year million. led demand Versal emulation largest multiple largest continues for premium test powering

Versal is customers. across multiple being Our adopted portfolio also broadly aerospace

AI Telluride build that As compute single Versal the satellites powered taped in to X SoCs. product second-gen first acceleration family AI enables SpaceX out we To more quarter, broadband this delivers latest XXx launched Core momentum, chip. and up on recently on by generation a their example, our application adaptive Versal last

the Design portfolio, to the our XXXX tracking grow business strong year-over-year and grow overall us years. across faster more than in momentum embedded coming is than XX% to in well win our market very positioning

accelerated the of Ryzen in Instinct for growth. business we strong and year-over-year processors the to in quarter, expect significant another summary, In EPYC demand result third and our quarter

anniversary this In XXth back, AMD's XX as successfully CEO. month a last have the step years, Taking arcs. marks we completed multiple my

the the by around into First, high-performance leader. by the adaptive for turning then transforming AMD sustained company and setting And and financial required solid computing and growth. operational foundation

about excited what in While us. accomplished, more proud front of incredibly opportunities I'm unprecedented growth I'm the we've even of

-- compute. years, our opportunities that is will essential Looking these of Data growth we exponentially the Each high-performance businesses computing significant adoption over and even of and rapid more Client of several amplified our driven see by more AI, by lives. experiences Center, nearly is make next Embedded the insatiable opportunities new part enabling and for the out which across daily demand

for is the accelerator the annual Center entire at in the roughly that In will grow annually TAM We XXXX. to sales equivalent to than context, -- in Data this alone, more we AI in $XXX XX% semiconductor to expect put XXXX. billion industry

our solutions a Center, execute to and incredibly our make partnering This with are with deliver markets AMD capabilities diversity our broad of we Beyond and exciting the breadth portfolio customer and address, AMD the AI a unique of scale. we our product differentiated deeply Data technology AI with for time leadership AI of as we ecosystem us product provide adding combined deep next as an partners end-to-end across portfolios the arc and leader. is opportunity at relationships

Now I'd turn to Jean on additional quarter like Jean? over to call our some to the third provide color results.

our I'll and for XXXX. fiscal our you, of financial Thank Lisa, start of results good and provide quarter everyone. current a then afternoon, the outlook with review fourth

we Client the a -- growth of revenue very basis, basis drove share We strong gross Data pleased year-over-year revenue XXX by Center XX%. -- are we grew points XX%. our and than results. financial And expanded quarter earnings and On segment more margin with segment doubled per third

I year-over-year revenue lower billion, as Revenue driven our in Center growth quarter XX% Data of in XXXX, Embedded Center and revenue Client our $X.X partially revenue and and up the increased was Data segment. Gaming was in our primarily and third sequentially, growth by the revenue -- offset For by segment. Client -- segment XX%

increase basis in Gross we margin. $X.X margin points by R&D Operating XX% billion, revenue. expenses Operating income primarily activities. $X.XX representing up center XXX of and segment continue was operating was XX%, an billion, higher invest data as to were year-over-year a go-to-market XX% driven year-over-year,

$X.XX, increase of year-over-year was XX% million. Taxes, per sequentially. Diluted share and earnings other and XX% was an interest $XXX expense

of Data an XX% $X.X sequentially. revenue turning sales. and segments. the and CPU Instinct revenue Center. our shipment growth delivered of Starting AMD revenue was quarter. in in record nearly Center quarterly increase reportable segment primarily XXX%, third Center Growth led Now the XX% Data a in $X with up strong segment increase to billion, of Data accounted AMD year-over-year by the total EPYC GPU ramp billion The of for

XX% operating $X was operating Center compared prior Data operating more to segment year Data by than or and revenue compared to ago. leverage. a revenue year, or tripled higher the million income driven of XX% billion Center segment income $XXX

driven compared a million billion, or or of by up primarily demand $X.X strong Client year-over-year X Zen revenue. operating was revenue operating offset higher $XXX revenue, income segment million Client of XX% Ryzen sequentially, partially by of driven was AMD for XX% processors. and higher XX% XX% revenue to segment ago operating our primarily $XXX income year by expenses.

and Gaming segment semi primarily segment a in revenue was $XXX million, X% down $XXX sequentially, XX% XX% $XX XX% revenue. Gaming a to ago. revenue compared or operating was million year-over-year due or year of customer decrease income to million

ago. as XX% a $XXX XX% several normalize Embedded increased continue compared revenue was income or to their million, segment was XX% down $XXX million revenue of operating levels. sequentially in Embedded X% or to as end year-over-year Revenue inventory improved year segment markets. demand million $XXX customers

and the sheet flow. the cash Turning balance to

During from $XXX and cash free the the was quarter, million. we generated operations $XXX cash flow million in

payments from our cash operating flows, acquisitions free related $XXX to was flow million. Excluding certain cash nonrecurring

$XXX Inventory increased of $X.X Data ramp million Center support segment the billion, primarily products. sequentially by to to continued

and the cash billion to billion. At shares, million we of X.X the and was end remaining. have shareholders, equivalents investment the third $X.X In authorization returned quarter, cash million short-term $X.X of $XXX we of cash, repurchasing quarter,

outlook. XXXX of quarter fourth our to turning Now

year-over-year, to in revenue than driven and segments. our minus Embedded expect decline plus up We Center more billion, by be Client and in $XXX Data approximately growth Gaming segment, or the million, $X.X offset XX% strong

primarily segment. Client up Center, be across driven XX% growth We expect revenue the and by to approximately Gaming sequentially, Data

$X.XX effective be be fourth to Non-GAAP XX%. non-GAAP and to approximately operating be expect income net diluted quarter approximately to to be expected million, Non-GAAP other count rate approximately shares. gross $XX X.XX share is expenses be tax addition, billion In non-GAAP billion. margin we to the XX%

margin expansion closing, and execution in third In year-over-year We the our with gross the share along we're revenue, in strong strong growth. with per pleased earnings record quarter. delivered

positioned the revenue segments. fourth driven record we center in Looking deliver ahead, data by client to our quarter very of continued another well in and are momentum quarter,

AMD a strategic profitable making are leader at and investment long-term the we AI end-to-end Importantly, growth. drive position as infrastructure

that, I'll it the to Mitch for back turn With Q&A session.

for John, audience poll let's . the you, Thank questions. Jean.

Thank Goldman line from Toshiya with Instructions]. comes question Mitch. first the of you, [Operator Sachs. the Hari And

Center My you first Lisa, one $XXX is took by on the business. up GPU drove Data the 'XX your outlook change Curious what there? million.

to But on Enterprise more how give into us to And this your of be large cloud doubt within importantly, forward 'XX, customers? possibility I growth helpful. specific cloud, And guidance and adding you're as going call. you conceptually, you speak between customers that really the your are new in you Instinct to thinking about look if would quantitative calendar can your customers Instinct, again,

Sure. Toshiya, for thank question. the you

a the first overall We quarter of ramp we important actually had the Data very were Instinct above strong customer and all, portfolio. bit a QX our in expectations. So Center able to and for for milestones, we especially initial completed some product

Center in and $X.X GPU year those we of of customer exceeding was guidance exceeding some billion raised to from Data milestones. very billion third $X based on the strong the So quarter, the for overall completion

this the So we about as end through go feel the good year. of we trajectory

And XXX to the level, next XXX this year. of build look, good within stronger about the with feel workloads. very second launching market customers, product of later a and that all from half see, our then that, then everything getting is your across to And there's annual At the required to XXXX. investment out question infrastructure talking quarter cadence, AI we significant about portfolio the in in high overall the we trying

engagements well. customer actually our customers, broadening then And terms are in of quite

broadening it's X -- ways. So and in

set very Instinct. we're running engaged cloud that Cloud customers Enterprise would number of and -- are customers workloads we of large with on certainly, with those expect good of be are would And that largest us quarters the over our opportunities next working also well. workloads, couple optimizing as they're a broadening their the and us actively So cloud and AMD for

then Jean quick maybe And gross one follow-up, a margin. for Great. on

flat gross sequentially, essentially helpful. the margin there, guiding if You're walk would QX really that can you takes be through and puts

speaking to again, think Data would recover. into One within CPU, low business And Center off of Embedded like forward a the begins to hopefully I look to of then And businesses you're expect some 'XX, then faster base. Enterprise would growth. kind you server as your grow perhaps continued

lot for But from points margin you So those gross you in I a what potential have And going think thinking we of a valid? about well? do terms headwinds as standpoint. are be should

Yes. that question. for Thank you

margin we gross very XX% pleased We QX. First, are are delivered QX we our XX.X% guiding and approximately performance. with in

our for when Center In of gross business, business us helps that XX% the margin been look at has be it's to mix, driven our revenue especially continue mix, more primarily to by improve strong general, you margin. accounting growth of Data the than XXXX, driver improvement our gross

on you is forward, Going business and to our to our That and say expand. going takes side, we're help see are the first the be the that guide tailwind gross going XXXX, Enterprise not Data going will But would puts I continue Server are largest is, side, absolutely GPU mentioned, right, as business, you driver Center specifically. forward CPU both margin will us side. a to the we growth

business below seeing us our Client Client also on gradually, headwind and consumer we At with tend business nicely. today margin. That's we'll are that same the something expansion more also which be recovering average. to help will gross is business with. deal Embedded corporate secondly, And is our but side, focused time,

team to to gross a would economics the margin. say scale operational to continue going year, When our to to to we're efficiency. you from of has job see scale improve lastly, operational can drive company benefit continue next I done And our efficiency we great improve

And the from of line with the comes next question Wells Fargo. Aaron Rakers

made, lead MIXXX talking out what about you characterize as curious into you do your on X would think the do having GPUs I'll about on of production as how I'm cycles guess I latter that point given these look . question. times, now maybe we How have supply supply And of the Yes. evolved MIXXX building $X-plus we XXXX. the the and doing chain side, just well. billion. another you've been I

Sure, Aaron.

with over quarter customer So I've chain. have getting both but how Again, business, we revenue that capacity Clearly, was -- reason as chain supply a around of Instinct the across third our a entire well supply part ramped the for the that environment, the very supply ensuring look, last higher been quarters. done job of in improvement. has chain demand our we've tight the great happy just it's number supply

expect And we've going will we going into environment into continue but XXXX, the significant think the next be tight, few that planned going growth quarters for to into I also XXXX.

our supply about overall capability. good feel we so chain And

million Yes. follow-up, let's the the And Could you piece the at Data guidance then driven by it Client how I quick versus of that when revenue business? sequentially. frame is Center in look call as at midpoint, up $XXX of sequential us a much about help the

Sure, Aaron.

look you of Data Center in QX, largest now QX. if grow certainly, the large over to business, that the So contributor is a And will in piece such business. it's continue and XX% our of sequential is business it our the guide, at

expect segment, well. to Client perform also we

our with the notebook desktop this X Zen AI launches think the launches very well PC done both on year, well I as launches. we've as

And other more segments expect would growth then Gaming, we on be a modest. sequential there. the Embedded basis, So

And question Deutsche comes the next with from Seymore of Bank. line Ross the

Jean, as guidance you up anniversary. the about playing didn't the Lisa, being it left. gave being last congrats question, then, when you up. And just Lisa, XX-year off of talked on Embedded kind the you segment mention

in fourth XXXX guidance? about implied how recovery. happening Just thinking the And are Embedded a your quarter curious, you directionally? just kind what's it's I know of muted in But business

Sure, Ross.

some Look, improvement then Let add. and start, in business. we've me Embedded the maybe can Jean seen

You in improvement saw the sequential in some QX.

modest QX. some in expect We improvement

are some is Embedded. really seeing segments we're What in that stronger. mix across There a subsegments the are different

be Versal did platform recovery. our strong. well, continues Aerospace much defense Communications new to and also there. did very our relatively not business seen So actually and well. We're ramping has test emulation

a would industrial softer on So I the fairly side. bit still also that, muted. say that's is And little

growth So add? be expect little you between little to the a for planning into want it, a but and call mixed Jean, of amongst let's bit QX, all in XXXX, of it modest to bit those, segments, if growth maybe, we we're

think No, you covered. I

I just Great. follow-up, guess EPYC for on the And my business.

done demand Lisa. well, the much you EPYC the incredibly of You've the well your this there, have away Have kind taking of out crowding slowed with up -- seem loosening from Instinct to down seen effect the year. side in any case, side. It doesn't you

up still 'XX? thinking or that customer spend You're maybe of about dynamic we CPU And perspective are so. into versus my by from as how math, a you XX% kind look GPU

Yes. Sure.

a progress Let the with the there. we've me been business. pleased Center Look, CPU talk bit Data about extremely little

refreshes. last market gotten We've certainly I to think capacity some activities. modernization also seen some the their the enterprises over start We've couple of data of with seen and sort has of the cloud environment better of adding center customers quarters. large their now

demand just ratios performance ramp also saw given market actually our here family and on Bergamo product price of very sort even capabilities. pretty third of X beginning the we then X in quarter, our or strong. X Zen Genoa Zen there. saw And extremely Turin our between well. portfolio that portfolio We was Zen Within Milan good environment, the the the of has done

have. see we strength AI that the server of adds the some some opportunity do overall, strong market, in and have So to overall we we a to top stack, which bottom very

Melius question And from the of Reitzes comes the line Research. with Ben next

a question. Yes. I pattern on X. I little to and could up stick If of bit follow for want servers the to the thanks

is like I next for seems you that are seeing you're are it that you servers. there CPU this gains. that is And -- perception what just particular catalyst? Is room And was GPU it cannibalizing wondering share AI there liking the Turin? more GPUs and Going poised out fact particular a consolidate with in momentum the But gear. to is seeing it more what year, with create a are in hyperscalers this you're can for upgrade? the about, talking right What you're the for specifically

Sure, Ben.

So of I scale-out very look the the both including traditional sort CPU is scale-up broad when Turin I of into XXXX, environment Turin or set optimized and at actually and workloads think workloads, server for going workloads. well

very think I that is positive. So

We It's the piece node believe there on and that configuration. helps also any that important head will Turin GPU well. content of CPUs, strong be an AI as of

think those are overall, for catalyst us. all good So I

And primarily, CPU a significant amount of POC where vast I expanding work have we're X in making making our working largest we and the now workloads. CIOs broad very Zen point between sale Zen general for But just with progress our we think portfolio we're sure and traditional that Enterprise, offerings. that are really the Xofferings we're longer. familiar X, a at very takes satisfies the us. majority of cloud customers, this has with important as There's workloads in Enterprise The are been our which strong

I just of on you And outperforming, -- seasonal There's concerns that what you're up guys And Okay. keep consumer in there's feel but to wondering market market. general the just was for do just want decline risk than follow just XQ? PC I then Or keep -- you the more is will the in XQ and the there guys, going things like in of you a PC particularly? weakness. seeing unabated

see things market. PC we in few a the Well,

consumer be our tends So business weighted. to more

product year is of to the of stronger we half have year. first the And launches. a added that's of couple this that fact the the usually year, the So than second half

with series. also our and for AI Zen our XXXX launched products. we Ryzen XXX launched products -- desktop And we our PC X So next-generation AI Ryzen

those the second expect normal half there call our us, stronger into let's have typical X That's the will business. of seasonality the going half. think given it, I be I first of So the combination than in would a year.

portfolio had And well end as that, optimism digits. the the I history, I growing Windows PC point mean, XXXX think maybe think the XX PC of and notebook. we've sort main I strongest the is I let's catalyst go generally sort call of across desktop have it, our catalysts. in as XXXX, some in And about think, the some there's is, we this support coming mid-single as we PC as of of the within market, AI into

think year. PC half XXXX, the good the market but expect we going feel some of in I seasonality about So level into we the of would first

question with line & of TD Joshua And the Company. next from the Buchalter comes Cowen

I'll I'm since here. X new keep it to

on everyone think On how not that, wants going the Center to realize we're of how Data workload existing not breadth the these at side? guidance, exists customers? the revenue next today. XXXX you much to And maybe and think GPU about you year a existing at be can but externally and at and to architecture into announcements catalyst GPU could we certainly CDNAX Center of internally customer Data as and That growing much side, speak on I MIXXX runway MIXXXX get a customers growth new new then

the Yes. for Thanks question. Sure, Joshua.

done of let completed gone of last We progress talked And when year, quarters, look, if we were the XXXX. again in me think we is revenue So few with perhaps we've the billion through the made MIXXX. you pleased a mean, what notion number the that just customer about successfully milestones. we've launching this started about I start business. very with of maybe we're Center in had we've GPU $X as we've Data

so those very, on specific performance. so milestones very requirements out-of-the-box -- as we well forth performant like meeting customer have all that and of we ensuring optimizing that And data and centers, at workloads the and in ensuring as reliability scale on include things are

it know We over have the the think couple well. think $X a really that. about I being exceeding actually it's like everyone going able in XXXX, to we have And feel go customers gained I of about of revenue last talk of seeing quarters, So just confidence ramped to faster. billion good how think I lot really would we

Going of that feel XXXX, We with there's we getting portfolio. is market. significant into a we've the great It our the everything MIXXX great market to continues The about off place product the CapEx investments. be about stronger where ramp. feel learned

to necessary of particular, run a ensure customer performance that software great can components side, that out-of-box at customer increased our have source And then performance, on in the ecosystem, TCO. support, all customers greatly at open are those we scale, at engagements,

grow have number workloads. we all those think current customers at I So opportunity the with a our good together, to of

a Meta event some partner workloads. on Microsoft language large Llama also models to been You from about at inference very has talking very, that. expanding our training with their great X.X heard with

then their should working engagements customers you assume very deep our large of to there, optimize are and are that hardware. software the continue to to we with many And with us them all out

in front are those opportunities So us. of the

at And amazing congrats on AMD. an decade

Timothy question from the comes line UBS. And with next the of Arcuri

and intensive more X quick a then had question. I a

December first Center it that right? about wanted kind the would about Data is that put billion GPU. actuals So in I ask September of the billion It $X.X Is to And the in range. one for the was seems range. like $X

Timothy. help question, granular We to pretty let business initial you But in a expectations. relative it's So me better Center our GPU maybe actually did the with this. Data

our now scale mean greater So GPU business. actually you we're was really CPU of business imagine would billion. I the that business seeing $X.X our the approaching than actually

then And is do and you some you cooled dropping next infrastructure, big of of I of ask you'll these market about do of the existing option, hear broadly Or see did I continue shape the just think the see some level? see into CQX how risk to customers a grow Can have maybe more liquid say And mean that number? because customers, next scale. wanting you Great. pause that with year? a on but I you rack MIXXX that year. you shape off off do kind of revenue the you

So bit before pause be about to you XXXX. scale I in if a there rack worry get could wonder you a

put like scale, -- preferred there's I look, spending this. we're is happy air-cooled guess some I lot want and business centers, are perfectly this environments, going infrastructure. on, go activity time data liquid center of building I it some would as cooled data existing out a mean, their into some to customers environments, Yes. with rack they're their

might customer quarters XXXX. the would helpful. I acquisitions not That's the XXXX be expect general, these think feel very I So say we opportunities But I feel there we lumpy. What build it about always In are exactly would trajectory you large significant it's is into are predictable good overall, and out. the which different lots that about good growth about would say of variants.

comes of next Stanley. The Moore question Joe from line the with Morgan

of looks on the $X forward revenue, split started going like could know you're of the breaks as and of able billion AI you I if that most traction that assess you've traction talk the off and what Can just just between wonder talk side. the with that about how well? some if in inference, down inference, I but training training about seen you sort to you

Joe. Sure,

traction primarily from been capabilities. certainly, the given just of that optimized strength the memory portfolio. inference is the memory product for like has the bandwidth well early and the very, talking So very billion we're MIXXX inference given with about, capacity $X

But quarters. and go continue expect training had we grow adoption, have to through next as that, that few we will we some the

call would as would say and balanced training so a we fast it I we fairly And a forward -- have portfolio inference. let's year, between

from with comes of America the line Securities. question Arya next the Bank And of Vivek

I X. had

Blackwell address first the Blackwell a to you to start, something they X behind ship do spec-wise, you of Rubin. next shipping be one, You're are to starting how Ultra great they argument year for MI the Lisa, comparable but kind right? this are So or investor off while industry at when on Hopper leader, is will MIXXX, remains year that

that do you really So how can gap? is gain And closed? see until closing that you gap AMD share

don't see that. actually I Vivek, Yes.

state me let maybe way. another So in it

I longer of HXXX it a MIXXX, gap. that And was a closed time. map good the when HXXX, actually accelerated for behind was road we in part with we have launched think our market

a well MIXXX MIXXX compete going and very compete think is well will the with to It's very Blackwell. product. with great series I HXXX

be frankly, in -- newer overarching market call the first the production particularly let's your the view shipping to In time volume the in continues to from, long It it, actually of samples world, constrained, the go ramping to workloads. a market product takes generations.

-- And data our a that ramp, that the is we from of have same. just easier much the actually is infrastructure the portfolio the a I with with advantages one think center retrofit it's standpoint,

over lots think customers. strengthening getting road look, of time, We our and that workloads. So is map the from feedback across that's are opportunities set actually AI the we're of this there

follow-up, market. to my the question back for on PC Lisa, And the

sequentially. or up it -- So was client the up was XX%

are guiding down. be great. How sell-through in as QX not you QX the channel? to growth down just their I guided well. QX do of some think Intel you that And flat the And to think had see or state in I I that because was ask

the that 'XX ASPs? is seen much you units? XXXX, the to this that How how think continue benefit ASP we year, for can of mix seeing much just you of as So in you of this also? strength because is are out you growth look And do have that

client would different a Yes. market. Vivek, may factors say it slightly the is way I that be our few the has overall business from

channel. So desktop me our start with let

channel. I think our share very the is in we've there. high done desktop very well And

results. in sell-through, saw we it strength of And We some obviously, quarter. sell-through the So that a QX. revenue was so across shows strong actually saw portfolio our highest it in

of AI rates of we cycle, at PCs. story. our is still heavily mean business good standpoint, tends and second very early momentum good the to activation looked we've so think more in of there. are be consumer XXX I is I risen more AI notebook half It's There around processors PC a newest activation momentum our and on that good. the rates some seeing but are the some weighted AI the

up Enterprise ASPs and depend Notebooks. So and my mix comment I Desktop But between think a on we'll see us. will for is and think the the Consumer the it about Client little earlier segment, and opportunity I bit an both units

in we well consumer opportunity see Enterprise. Client grow And both to as are the underrepresented an We in segment. as

Sur question next from JPMorgan. And with comes Harlan the the line of

Enterprise business, did verticals. see your to in start EPYC was you core many recovery broad-based quarter. It last across on Lisa,

You've got And what quarter and trends Enterprise? sounds follow-through like China? quarter-on-quarter then seeing quarter. share anticipate well, got are right? general And September the this continued Enterprise dynamic you sort -- out that you've growth in demand of continued you of of growing trend cloud it a also as in for maybe Do terms

Sure.

thanks positive here growth question. So see We for in Harlan, Enterprise. in the did quarter third the momentum

on-prem seeing we're that adoption broader and as well getting growth in deployments both are third-party as deployments. We cloud

sort happy they're instances adoption instances cloud older cloud, migrations And with they're they're to migrating AMD from our or so of seeing are We're the migrating people we're to to AMD. newer migrating to cloud on-prem from doing very instances. migrations, of when cloud

Cloud as So the the us I think as helps well segment. that both in Enterprise segment

strength and quarter forward another sequential on in for I are growth Enterprise fourth our business expecting basis go we the As into of we and both quarter, Server Cloud. think a

we been about going have place where Enterprise think think underrepresented. opportunities forward, I the we a as And our is business

I strengthened. has think portfolio our

with broadened So platforms Zen X launch. that offered portfolio the by Zen being the OEMs but with are not have X, also just the

for And XXXX. us so opportunities I think those are in

are Yes. market China underrepresented On question, your China service side. in we in the

to Lisa said, as share. us another gain So for that's continue to opportunity

the line Research. Rasgon next Stacy of . the comes Bernstein with question And from

of first the the Data I you one, back size what wanted the about the said But go Center to to GPUs quarter. in

maybe actually be for Your billion is that $X $X.X it the little you And year, And like under of number, which right? the billion, you'd is You put was it what size compute business around that right, a approaching at QX. implies in that said more. down if

to flat that probably $X.X for be So billion year, growth. $X.X than billion and I'd sequentially get just be more full got to or the to

that So is Like the think that I that? is how business QX? into the about guess of in And of size talking the we you're of one, number question thinking QX? that the level kind should you're about is growth

Stacy. Right,

a first, of things. couple So

We $X.X is than question billion. Center in our of have that other remember earlier revenue CPUs Data it things. and $X.X greater segment, not said was I the the But have and revenue was some that billion, GPUs,right? have that we You FPGAs other and some to

talked billion. -- So an we we data We GPU. didn't take about then fundamental. that -- center as for a guide as the $X exceed And said number exact

And so exceeds billion. you that assume should it $X

Okay.

point. that about production seasonality I specifically for like about bit follow-up, But I -- at to general is For seasonal QX MIXXX, ramping should of you talked like statement kind on my I lumpiness be year, a or the next QX into I given be have a that into the you guess, thinking there lumpiness? Data GPU? Center know into seasonality little something thinking any about

GPU quite the bit implying something wasn't of implying it I the Data on a the customers. was you that business. Center specific depends if business, number more I seasonality about of think a about of evolution

large lumpiness. by driven that of customers these some than higher are So bit That see a Like drive third type additional customer was we the that demand, expected. for was example, may we and quarter deployments.

things So what was that I XXXX. get as into we we'll And was evolve how have implying. see to

Harsh next the line We questions. The Piper have time X for of Sandler. from with Kumar question comes more

all, on so the first just your stock anniversary. the chart, of heck Instinct I here. looked congratulations at a billion $X XX-year also XX-year And congratulations in a is Lisa, of on around revenues. $X, job

billion, most market, of This it. wanted $XX to the call time. XXXX, the is take key $X ask get to billion, all investors your we another billion count, the will $XX In like AI something market, from GPU I TAM say, first question. the the let's billion, one you'll get coming take So they'll rough competitor year, in the of $XX

question think You've the you level chip is what the got compatibility. do is, major So hindrance?

So in the to that you're game. earlier just fact boil the does down it

level what the You've manner? could a here. major in been Or of us becoming to player doing just this think If a rack about you still just help hindrances are XX months a serious you disparity? there is

and Sure, opportunities. for Thanks say, question comments. the as Harsh. me them Yes. the for view let Maybe I

If ramp. is differences, comfortable Harsh, days, although the but environment. it some EPYC are that differences, are And good people product we're I software in workload our get There the we with both there X, even Rome built, do, Zen there to had and Zen trust obviously, GPUs. to extremely X, in you is X time Zen there the some with Zen you from want the remember, does that familiarity take ensure product X, back think ramp

think a ramp actually ramp rate. this get that. think We journey. always very the an I'm my the about progress view So year And from next series, good both very the about multi-generational set the it's I've as And seen we a expanding is product MIXXX into ramp that fastest product. I We've exceptional on the customer It's be overall. to as standpoint, is positive feel said we as well workload. is going

we all, the and going the ramp the continue these all So well, is in and and to earn will earn partnership of large trust -- -- customers.

and to What that's at we a I very, is AMD. shot what very see will are their earning us customers that business, And everywhere fair is to we open say everyone very go, we do. giving intend

time here. margins. . I revenue framework Lisa, on probably well some helpful. us you but that think help maybe understood Could margins corporate won't out us for a MIXXX maybe maybe that give be with you frame a in kind level Instinct how manner from parity understand business? help might your your Jean Very follow-up, a below of could It's us you can corporate MIXXX, gross it. will know or and margin of try those some and we help get to for could gross frame,

Yes.

improve Center gross drive our are market when average. address very think benefit the below presence increase now going to really only our Overall, pleased to it We about substantial into GPU and demand Data focus business, growth. course, on you right corporate our revenue TCO our the really of next customer and ramp support top year, is revenue to revenue priority provide continue ramp significantly and with it's And not of team margin. overall our the and

it, segment term, tripled have our the gross operating once you to the to at longer margin. doubled income longer get over to margin we data we is the revenue, better corporate performance, it improve gross continue when year-over-year, the than than we'll be When run, take you revenue We'll year-over-year. But we ramp business, center in think continue more average. think about some Center -- do look the tends there. time Data but the the opportunity the to On this side, to we

the drive to the that's get I growth margin long-term time, it how we the are about So really same is and think gross drive up. thinking market at presence

of O'Malley And Thomas the our final line comes Barclays. question from with

to significant mix platform in the say the Or you and series. in the Lisa, late situation QX. just Obviously, ask expect impact it's into one. of a year Should contribution the you're launching MIXXX -- we this the QX? should QX? most wanted launching into is is I which that's a first product MIXXX I on new guess

are color end And for on about then is where into one You year, and gave and Any of there just there industrial Com Embedded next QX Xilinx? terms the be you at we're you markets are some outperforming, little talk second in if look where a of QX. could starting the any kind But would into that just there. and Are underperforming? helpful. color of

Absolutely, Tom.

expect your still first of first MIXXX. the is the to more the mix terms quarter, mix be of into going quarter the We back on late would So in and it MIXXX will in majority production of question be in a will QX. ramp.

So that's question. that

XXXX, business And say will see would -- QX timing. that we're I the we're for will then the what We that I in expecting terms similar of the a we the QX, be are markets trends mentioned recover, Embedded that it expect recovery. of going some gradual that do to to

to aerospace is certainly and for was started a So that We're we bit Emulation little some Test we the and the in in defense. see recovery comms and see And we waiting we strength of in see that see. segment, still strength, that. There of industrial. automotive some

sort of on So of the we this we see end currently. that we'll year, get go what that's more as but visibility through

the And time, over session. the comments. closing back like this we I'd to end to Haws question-and-answer Mitch now of at floor reached the have any And turn for

Thanks That to for call. concludes joining today's you today. us of all

That for conclude today's you. We your teleconference. And does thank thank participation. you

You time. at this lines may disconnect your