Q4 2023 Summary
Published Jan 10, 2025, 5:10 PM UTC- AMD increased its 2024 Data Center GPU revenue expectation to exceed $3.5 billion, up from the prior guidance of $2 billion, due to strong customer demand for its MI300 accelerators.
- AMD has secured significant supply chain capacity to support the growing demand for its Data Center GPUs, indicating confidence in fulfilling customer commitments and driving revenue growth.
- AMD expects to continue gaining market share in both the Data Center and Client segments in 2024, driven by the strength of its product portfolio and competitive roadmap, even amidst a mixed demand environment and competitive pressures.
- AMD expects a significant double-digit decline in its Gaming segment revenue for 2024, which could negatively impact overall revenue growth.
- Intel may catch up or surpass TSMC in process technology and adopt similar chiplet designs, potentially eroding AMD's competitive advantage in CPUs and GPUs.
- Supply chain constraints, especially in the first half of the year, may limit AMD's ability to meet demand for its data center GPUs, potentially affecting revenue targets and customer expectations.
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MI300 Revenue Expectations Raised
Q: Why did you raise MI300 revenue guidance to $3.5B?
A: We updated our MI300 revenue forecast from $2 billion to over $3.5 billion due to strong customer demand signals ( , ). Orders have increased with firm commitments, and we're confident in exceeding this target. We've also secured significant supply capacity to meet the increased demand ( , ). -
Supply Capacity for MI300
Q: Can you supply more if demand exceeds $3.5B?
A: Yes, we've secured significant supply capacity and are planning for success to exceed $3.5 billion in MI300 revenue if customer demand increases ( , , ). Our supply chain partners are supporting us in ramping up production, especially in the second half of the year ( , ). -
Competitive Landscape and Roadmap
Q: How does Intel's advancements affect AMD's position?
A: We're continuously innovating and feel confident about our architectural roadmap. Even if competitors are on similar process technology, our focus on architecture, design, and partnerships keeps us strongly positioned ( , , ). We're paying attention to the process race but feel very good about our strategy and competitive position going forward ( , , ). -
$400 Billion TAM Explanation
Q: What's behind the $400B TAM estimate for 2027?
A: The $400 billion TAM reflects expected substantial double-digit percentage growth in units and content, driven by increased compute demands in AI training and inference accelerators. It includes GPUs, ASICs, and associated memory, but not full systems ( , , ). We see significant growth opportunities as customers plan longer-term roadmaps, and inference demand is expected to exceed training in the next few years ( , ). -
Data Center GPU Advantages
Q: What's the value proposition of MI300 over competitors?
A: The MI300 offers a performance-per-dollar benefit and more free bandwidth and memory capacity than competitors. For large language models, it can perform workloads with fewer GPUs, leading to substantial system savings and allowing more work within the same system. Customers are using MI300 for both training and large language model inferencing ( , ). -
Gross Margin Outlook
Q: How will gross margins progress in 2024?
A: Gross margins are expected to expand, driven by higher Data Center contributions as that business grows faster than other segments. Data Center GPU margins are improving and are expected to be accretive to corporate average. Headwinds include declines in the Embedded segment in the first half, but overall, we feel good about the gross margin trajectory, especially in the second half of the year ( ). -
Server CPU Demand and Share Gains
Q: What's the outlook for server CPU market share growth?
A: Despite mixed demand in the traditional server market, we see opportunities to continue gaining share with our strong portfolio, including Genoa, Bergamo, and the upcoming Turin products. We expect our CPU business to grow in 2024, driven by customer refresh cycles and the value proposition of our latest offerings ( , ).