Ross Seymore's questions to Advanced Micro Devices Inc (AMD) leadership • Q1 2025
Question
Ross Seymore inquired about the Embedded segment, asking for the drivers behind the company's confidence in a second-half recovery that would require significant sequential growth. He also asked for clarification on the full impact of the ZT Systems acquisition on operating expenses.
Answer
CFO Jean Hu explained that confidence in the Embedded segment's recovery comes from improving order patterns and book-to-bill ratios, particularly in the aerospace, defense, and test and measurement markets. She guided to a flattish Q2, with year-over-year growth expected to resume in Q3 and especially Q4. On OpEx, Hu confirmed the incremental quarterly expense from the ZT design team is about $50 million and that the company remains disciplined, expecting earnings to grow faster than revenue.