Advanced Micro Devices, Inc. (AMD) is a global semiconductor company specializing in the development and sale of microprocessors, graphics processing units, and other semiconductor products. AMD operates through four primary segments: Data Center, Client, Gaming, and Embedded, each contributing significantly to its overall revenue. The company also engages in the sale or licensing of its intellectual property portfolio **[0000002488-24-000163_amd-20240928.htm:17]** **[0001193125-24-076513_d653280ddef14a.htm:55]** **[0000002488-24-000012_amd-20231230.htm:103]** **[0000002488-24-000012_amd-20231230.htm:94]**.

1. **Data Center** - Develops and sells server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs), AI accelerators, and Adaptive System-on-Chip (SoC) products.
2. **Gaming** - Offers discrete GPUs and semi-custom SoC products tailored for gaming applications.
3. **Embedded** - Provides embedded CPUs, GPUs, APUs, FPGAs, and Adaptive SoC products, with growth driven by the acquisition of Xilinx.
4. **Client** - Focuses on CPUs, APUs, and chipsets designed for personal computers.

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Percentage increase in unit shipments for AMD Ryzen desktop and mobile processors (percent)

Percentage increase in average selling price for AMD Ryzen desktop and mobile processors (percent)

59095f897cbfbbdfcff9cd38bf67b7efc00703fc8db2802a0c0232689b8276fe

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

8e924e2b0271ef5e740f7b07ac0dcffe09db6cf3581e812d417a6fd479f7a18c

| Segment / Quarter                  | Q4 2022  **[AMD_3226280_3]** **[0000002488-23-000007_q42022991final.htm:2]**  | Q1 2023  **[AMD_3248681_3]** **[0000002488-23-000074_amdq123earningsslides.htm:5]**  | Q2 2023  **[AMD_3384295_4]** **[0000002488-23-000135_amdq223earningsslidesfin.htm:5]**  | Q3 2023  **[0000002488-23-000192_q32023991.htm:0]** **[AMD_3363023_4]**  | Q4 2023  **[AMD_3371311_5]** **[0000002488-24-000009_q42023991final.htm:1]**  | Q1 2024  **[0000002488-24-000054_q12024991.htm:0]** **[0000002488-24-000054_amdq124earningsslides.htm:5]**  | Q2 2024  **[0000002488-24-000121_q22024991.htm:0]** **[0000002488-24-000121_amdq224earningsslides.htm:5]**  | Q3 2024  **[0000002488-24-000161_q32024991.htm:0]** **[0000002488-24-000161_amdq324earningsslides.htm:5]**  |
|------------------------------------|---------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
| **Data Center Segment ($B)**       | **1.7**             | **1.3**            | **1.3**            | **1.6**            | **2.3**            | **2.3**            | **2.8**            | **3.5**            |
| **Client Segment ($B)**            | **0.903**           | **0.739**          | **0.998**          | **1.5**            | **1.5**            | **1.4**            | **1.5**            | **1.9**            |
| **Gaming Segment ($B)**            | **1.6**             | **1.8**            | **1.6**            | **1.5**            | **1.4**            | **0.922**          | **0.648**          | **0.462**          |
| **Embedded Segment ($B)**          | **1.4**             | **1.6**            | **1.5**            | **1.2**            | **1.1**            | **0.846**          | **0.861**          | **0.927**          |

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1. The Embedded segment revenue decreased 25% year-over-year to $927 million, with ongoing softness in the industrial market  **[AMD_3404421_5]** ; what specific strategies are you implementing to return the Embedded segment to growth, and when do you anticipate a meaningful recovery?

2. While your Data Center GPU business is approaching the scale of your CPU business and delivered better-than-expected results  **[AMD_3404421_17]** , how are you addressing potential supply chain constraints to meet the robust demand, and what risks do you foresee in sustaining this growth into 2025  **[AMD_3404421_10]** ?

3. Given that you're seeing lumpiness in the Data Center GPU business due to dependency on a specific number of large customers  **[AMD_3404421_24]** , how does this affect your revenue predictability, and what measures are you taking to diversify your customer base to mitigate this volatility?

4. With the AI accelerator TAM expected to grow at more than 60% annually to $500 billion in 2028  **[AMD_3404421_5]** , how does AMD plan to capture a significant share in this rapidly expanding market, and what competitive advantages differentiate your AI solutions from those of established competitors?

5. Despite strong top and bottom-line growth driven by record Instinct and EPYC product sales  **[AMD_3404421_7]** **[AMD_3404421_1]** , the Gaming and Embedded segments experienced declines  **[AMD_3404421_2]** ; how do you plan to address the weaknesses in these segments to ensure balanced and sustainable growth across your entire portfolio?

555a249251cd2dd54bcc4062f783b22d874bb96f5d7684c95c572c4f2ea12abe

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  - **Revenue**: Approximately **$7.5 billion**, plus or minus $300 million, up 22% year-over-year  **[AMD_3404421_6]** .
  - **Non-GAAP Gross Margin**: Approximately **54%**  **[AMD_3404421_7]** .
  - **Non-GAAP Operating Expenses**: Approximately **$2.05 billion**  **[AMD_3404421_7]** .
  - **Non-GAAP Other Net Income**: **$17 million**  **[AMD_3404421_7]** .
  - **Non-GAAP Effective Tax Rate**: **13%**  **[AMD_3404421_7]** .
  - **Diluted Share Count**: Approximately **1.64 billion shares**  **[AMD_3404421_7]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024
- **Guidance**:
  - **Revenue**: Approximately **$6.7 billion**, plus or minus $300 million, with sequential growth of approximately 15% and year-over-year growth of approximately 16%  **[AMD_3395051_6]** .
  - **Non-GAAP Gross Margin**: Approximately **53.5%**  **[AMD_3395051_6]** .
  - **Non-GAAP Operating Expenses**: Approximately **$1.9 billion**  **[AMD_3395051_6]** .
  - **Non-GAAP Effective Tax Rate**: **13%**  **[AMD_3395051_6]** .
  - **Diluted Share Count**: Approximately **1.64 billion shares**  **[AMD_3395051_6]** .
  - **Segment Revenue Expectations**:
    - **Data Center and Client Segment**: Expected to drive strong growth  **[AMD_3395051_6]** .
    - **Embedded Segment**: Expected to be up  **[AMD_3395051_6]** .
    - **Gaming Segment**: Expected to decline by a double-digit percentage  **[AMD_3395051_6]** .
  - **Acquisition**: Expected to close the acquisition of Silo AI for approximately **$665 million** in cash during the third quarter  **[AMD_3395051_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024
- **Guidance**:
  - **Revenue**: Approximately **$5.7 billion**, plus or minus $300 million  **[AMD_3381570_5]** .
  - **Non-GAAP Gross Margin**: Approximately **53%**  **[AMD_3381570_5]** .
  - **Non-GAAP Operating Expenses**: Approximately **$1.8 billion**  **[AMD_3381570_5]** .
  - **Non-GAAP Effective Tax Rate**: **13%**  **[AMD_3381570_5]** .
  - **Diluted Share Count**: Approximately **1.64 billion shares**  **[AMD_3381570_5]** .
  - **Data Center Segment Revenue**: Expected to increase by double-digit percentage sequentially  **[AMD_3381570_5]** .
  - **Client Segment Revenue**: Expected to increase sequentially  **[AMD_3381570_5]** .
  - **Embedded Segment Revenue**: Expected to be flat sequentially  **[AMD_3381570_5]** .
  - **Gaming Segment Revenue**: Expected to decline by significant double-digit percentage sequentially  **[AMD_3381570_5]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024
- **Guidance**:
  - **Revenue**: Approximately **$5.4 billion**, plus or minus $300 million  **[AMD_3371311_6]** .
  - **Data Center Segment Revenue**: Expected to be flat sequentially, with a seasonal decline in server sales offset by a strong Data Center GPU ramp  **[AMD_3371311_6]** .
  - **Embedded Revenue**: Expected to decline as customers continue to work down their inventory levels  **[AMD_3371311_6]** .
  - **Client Segment Revenue**: Expected to decline seasonally  **[AMD_3371311_6]** .
  - **Gaming Segment Revenue**: Expected to decline by a significant double-digit percentage year-over-year  **[AMD_3371311_6]** .
  - **Non-GAAP Gross Margin**: Approximately **52%**  **[AMD_3371311_6]** .
  - **Non-GAAP Operating Expenses**: Approximately **$1.73 billion**  **[AMD_3371311_6]** .
  - **Non-GAAP Effective Tax Rate**: **13%**  **[AMD_3371311_6]** .
  - **Diluted Share Count**: Approximately **1.63 billion shares**  **[AMD_3371311_6]** .

012adc3c0d60c5007a8e30fcb232982847e11845167fbf6de1831b2d90748ad8

- Intel: Expanding its position in integrated graphics for the PC market with high-end discrete graphics solutions for a broad range of computing markets, which may negatively impact AMD's ability to compete in these computing markets  **[0000002488-24-000012_amd-20231230.htm:34]** .
- Nvidia: Added an ARM CPU offering which adds competition in the CPU market; expected intense competition from Nvidia in the supply of GPUs and other accelerators for the AI market  **[0000002488-24-000012_amd-20231230.htm:34]** .

f83c4597e7ce901e17436f40ab72856fea14b655200042cf7d03ddef679b150b

Data Center

Client

Gaming

Embedded

Computing and Graphics

Enterprise, Embedded and Semi-Custom

Xilinx

- Computing Solutions

- Graphics and Visual Solutions

- All Other

Total Revenue

202580ecc6784e34aaa896b4a94610b8ef2a614613d11fdc7726aa76cae8b5a4

665a19f92cd6941a0367c030ac829fe485da87406d7dba8e16160a4f2a276608

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| Program Details          | Program 1        |
|--------------------------|------------------|
| Approval Date            | N/A              |
| End Date/Duration        | **No termination date**  **[0000002488-24-000163_amd-20240928.htm:13]** **[0000002488-24-000163_amd-20240928.htm:67]** **[0000002488-24-000163_amd-20240928.htm:68]**  |
| Total additional amount  | **$12 billion**  **[0000002488-24-000163_amd-20240928.htm:13]** **[0000002488-24-000163_amd-20240928.htm:67]** **[0000002488-24-000163_amd-20240928.htm:68]**  |
| Remaining authorization amount | **$4.9 billion**  **[0000002488-24-000163_amd-20240928.htm:13]** **[0000002488-24-000163_amd-20240928.htm:67]** **[0000002488-24-000163_amd-20240928.htm:68]**  |
| Details                  | The program may be suspended or discontinued at any time.  **[0000002488-24-000163_amd-20240928.htm:13]** **[0000002488-24-000163_amd-20240928.htm:67]** **[0000002488-24-000163_amd-20240928.htm:68]**  |

3d936e14ec2e2ca75ff047614de4431b24330ca143c21e54b5142a9f533a3d3c

United States

Japan

China

China (including Hong Kong)

China (including Taiwan)

Singapore

Europe

Taiwan

Other countries

- International Sales

dca71caf5bdedb013ef6790eca8bd24cb7f5e8234f24cc8ec10caf0721e62ab8

**Quarterly guidance for Q4 2024:**
- **Revenue**: Approximately $7.5B plus or minus $300 million, up 22% year-over-year  **[AMD_3404421_6]**  (raised from $6.7B plus or minus $300 million  **[AMD_3395051_6]** )  
- **Non-GAAP Gross Margin**: 54%  **[AMD_3404421_7]**  (raised from 53.5%  **[AMD_3395051_6]** )  
- **Non-GAAP Operating Expenses**: $2.05B  **[AMD_3404421_7]**  (raised from $1.9B  **[AMD_3395051_6]** )  
- **Non-GAAP Other Net Income**: $17 million  **[AMD_3404421_7]**  (no prior guidance)  
- **Non-GAAP Effective Tax Rate**: 13%  **[AMD_3404421_7]**  (no change from prior guidance  **[AMD_3395051_6]** )  
- **Diluted Share Count**: Approximately 1.64B shares  **[AMD_3404421_7]**  (no change from prior guidance  **[AMD_3395051_6]** )  

01d99285f68c6a28650b581668ab96bc53953f77573207122d2b395c6097fcd1

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1970  **[0000002488-24-000012_amd-20231230.htm:128]**    | Present  | Current auditor   |

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- Total Revenue: $6,819 million (+18% YoY)  **[0000002488-24-000163_amd-20240928.htm:19]**   
- Data Center: $3,549 million (**+122% YoY**)  **[0000002488-24-000163_amd-20240928.htm:19]**   
- Client: $1,881 million (+29% YoY)  **[0000002488-24-000163_amd-20240928.htm:19]**   
- Gaming: $462 million (**-69% YoY**)  **[0000002488-24-000163_amd-20240928.htm:19]**   
- Embedded: $927 million (-25% YoY)  **[0000002488-24-000163_amd-20240928.htm:19]**   
- Operating Income (EBIT): $724 million (**+223% YoY**)  **[0000002488-24-000163_amd-20240928.htm:3]**   
- Net Income: $771 million (**+158% YoY**)  **[0000002488-24-000163_amd-20240928.htm:3]**   
- EPS (Basic): $0.48 (**+152% YoY**)  **[0000002488-24-000163_amd-20240928.htm:3]**   

4b67018e0a8541aa554bff7ea5245d51aca2209efdf8bd6aab4ef117fc004dc1

| Year | Amount Due (in millions) | Debt Type         | Interest Rate (%) | % of Total Debt                     |
|----------|------------------------------|-----------------------|-----------------------|------------------------------------------|
| 2030     | $750 **[0000002488-24-000163_amd-20240928.htm:10]**                 | 2.375% Senior Notes   | 2.375 **[0000002488-24-000163_amd-20240928.htm:10]**         | 42.9% = (750 / 1750) * 100 **[0000002488-24-000163_amd-20240928.htm:10]**       |
| 2032     | $500 **[0000002488-24-000163_amd-20240928.htm:10]**                 | 3.924% Senior Notes   | 3.924 **[0000002488-24-000163_amd-20240928.htm:10]**         | 28.6% = (500 / 1750) * 100 **[0000002488-24-000163_amd-20240928.htm:10]**       |
| 2052     | $500 **[0000002488-24-000163_amd-20240928.htm:10]**                 | 4.393% Senior Notes   | 4.393 **[0000002488-24-000163_amd-20240928.htm:10]**         | 28.6% = (500 / 1750) * 100 **[0000002488-24-000163_amd-20240928.htm:10]**       |

bc81ebc2b85f216fc25783c985200a6d89897b6cb88288c9a9c3ab4fa9556a39

- **AMD's Data Center business is expected to grow strong double digits in 2025**, with both the server product line and the Data Center GPU product line contributing significantly. The MI350 series launch has been pulled into mid-year due to very strong customer demand, improving competitiveness.  **[AMD_3414313_8]**
- **AMD's Client segment is outperforming the market**, with record desktop sell-out and strong mobile performance in Q4 2024. AMD is bullish on growing the Client segment in 2025 due to a strong product portfolio and new commercial PC offerings.  **[AMD_3414313_15]**
- **AMD expects gross margin to improve in the second half of 2025**, driven by the Data Center being the fastest growth driver, which will drive the gross margin to step up in the second half.  **[AMD_3414313_22]**

f63c8b008c06cc9b63b5bf385940ada986b59941119445b77ce769fc89bd5c8d

- 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_3371311_14]**
- 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_3371311_14]**
- 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_3371311_10]** **[AMD_3371311_17]** **[AMD_3371311_20]**

c21401f616af442001f8991b88b329b222e2733e25cfb18afdfa2cd546f2668a

- **AMD faces strong competition in the AI hardware market, particularly from established competitors with advanced software ecosystems, making it challenging to carve out market share**.  **[AMD_3395051_12]** **[AMD_3395051_18]**
- **Supply chain tightness for key components like HBM3 memory is expected to continue through 2025, which may limit AMD's ability to meet demand for its MI300 GPU accelerators**.  **[AMD_3395051_14]** **[AMD_3395051_18]**
- **AMD's gross margins are under pressure, with guidance indicating a decline in incremental gross margin for Q3; additionally, significant investments in software (such as the acquisition of Silo AI) may impact profitability**.  **[AMD_3395051_15]** **[AMD_3395051_18]**

c815516bacad37d0de3c42a5f3815ab8ee5655c12c74e13a3c4f97d794f6efa0

- **Data Center GPU Growth Slowing in First Half of 2025**: AMD's management indicated that the Data Center GPU business will be roughly **flat** in the first half of 2025 compared to the second half of 2024, due to a product transition and timing of deployments. This lack of growth in a key segment could be a concern for investors seeking continued momentum in AI and Data Center markets.  **[AMD_3414313_22]**
- **Increased Competition in Server CPU Market**: There are concerns about aggressive pricing from competitors in the server CPU market. If competitors become more aggressive on pricing to regain share, it may impact AMD's ability to grow its server CPU business in line with expectations and could pressure margins.  **[AMD_3414313_10]**
- **Flat Gross Margins in First Half of 2025**: AMD expects gross margin to remain at **54%** in the first half of 2025, consistent with Q4 2024, with improvement not anticipated until the second half of the year when the Data Center segment grows faster. This may indicate that higher-margin products are not contributing significantly in the near term.  **[AMD_3414313_5]**

9b634b18df02558e5cbdfa8bd5254a05ccf269dbe31919b92d0d0babfbfdddc1

1. **Data Center GPU Growth**  
   **Q:** How will Data Center GPU revenue progress in 2025?  
   **A:** Lisa Su expects strong double-digit growth in the Data Center GPU business in 2025, with the second half being stronger due to the earlier-than-planned ramp of the MI350 series, now pulled into mid-2025 because of strong customer demand.  **[AMD_3414313_8]** **[AMD_3414313_14]**  The first half of 2025 Data Center revenue is expected to be consistent with the second half of 2024.  **[AMD_3414313_11]** 

2. **Server CPU Competition**  
   **Q:** Will competitor pricing impact server CPU growth prospects?  
   **A:** Jean Hu is confident in growing the server CPU business despite competitive pricing, highlighting AMD's strong product lineup, including Turin, Genoa, and Milan, offering the best TCO for customers.  **[AMD_3414313_10]**  She expects growth in both units and ASPs while continuing to gain market share.  **[AMD_3414313_10]** 

3. **Gross Margin Outlook**  
   **Q:** What is the gross margin outlook for 2025?  
   **A:** Jean Hu guided for a gross margin of **54%** in Q1 2025, driven by a consistent revenue mix with strong year-over-year growth in both Data Center and Client businesses.  **[AMD_3414313_22]**  She anticipates gross margins to remain at this level in the first half, improving in the second half as Data Center becomes the fastest growth driver.  **[AMD_3414313_22]** 

4. **Impact of New AI Models**  
   **Q:** Does DeepSeek's innovation affect AMD's market opportunity?  
   **A:** Lisa Su believes that innovations like DeepSeek are positive for AI adoption, enabling training and inference with less infrastructure.  **[AMD_3414313_13]**  She is bullish on the overall cycle and expects increased AI compute deployment.  **[AMD_3414313_13]**  She sees ASICs as a smaller part of the TAM, with GPUs offering programmability amid evolving AI algorithms.  **[AMD_3414313_13]** 

5. **Client Business Strength**  
   **Q:** Are there concerns about inventory buildup in the Client segment?  
   **A:** Lisa Su sees no substantial inventory buildup, attributing strong Q4 performance to high adoption of new products.  **[AMD_3414313_15]**  The desktop segment saw the highest sell-out in many years, and notebooks benefited from new AI PCs launched by OEM partners.  **[AMD_3414313_15]**  AMD is bullish on Client growth prospects in 2025.  **[AMD_3414313_15]** 

6. **Networking in AI Infrastructure**  
   **Q:** How is AMD addressing AI networking requirements?  
   **A:** Lisa Su emphasized that networking is crucial for AI solutions, with AMD investing significantly in this area.  **[AMD_3414313_17]**  AMD is working with partners on Ethernet and developing an in-house AI NIC with the Pensando team.  **[AMD_3414313_17]**  They are deploying full rack solutions at MI350 and MI400 levels.  **[AMD_3414313_17]** 

7. **Server CPU Market Outlook**  
   **Q:** How does AMD view the server CPU market in 2025?  
   **A:** Lisa Su anticipates a strong server market in both cloud and Enterprise segments in 2025.  **[AMD_3414313_21]**  Enterprise refresh cycles are resuming, and cloud vendors are updating data centers.  **[AMD_3414313_21]**  AMD's expanded portfolio across workloads supports continued market share gains.  **[AMD_3414313_21]** 

8. **Data Center GPU Performance**  
   **Q:** Will Data Center GPU revenue decline sequentially in early 2025?  
   **A:** Lisa Su clarified that while the Data Center segment was up **9%** sequentially in Q4, with server up slightly more and Data Center GPU slightly less, she expects the first half of 2025 revenue to be roughly flat compared to the second half of 2024.  **[AMD_3414313_19]**  Sequential changes depend on deployment timing.  **[AMD_3414313_19]** 

9. **Data Center Growth Dynamics**  
   **Q:** Why is Data Center sequential growth slowing in near term?  
   **A:** Lisa Su explained that after significant growth in 2024, AMD is transitioning products in early 2025.  **[AMD_3414313_18]**  The introduction of MI350 is crucial, and they continue gaining new customers and deployments.  **[AMD_3414313_18]** 

10. **Enterprise Server Momentum**  
    **Q:** Did Enterprise server sales grow sequentially in Q4?  
    **A:** Lisa Su confirmed double-digit sequential growth in server business during Q4, with growth in both cloud and Enterprise.  **[AMD_3414313_16]**  Investments in go-to-market strategies have converted POCs to volume deployments.  **[AMD_3414313_16]**  She expects a strong 2025 for server CPUs across all workloads.  **[AMD_3414313_16]** 

d9574e6e8fa9b321603a69300f929e058175984e3d7f9c0f499af25e33e960de

**Quarterly guidance for Q1 2025:**
- **Revenue**: $7.1 billion ± $300 million  **[AMD_3414313_7]**  (lowered from $7.5 billion ± $300 million  **[AMD_3404421_6]** )  
- **Year-over-year growth**: 30%  **[AMD_3414313_7]**  (raised from 22%  **[AMD_3404421_6]** )  
- **Sequential decline**: 7%  **[AMD_3414313_7]**  (no prior guidance)  
- **Non-GAAP Gross Margin**: 54%  **[AMD_3414313_7]**  (no change from prior guidance  **[AMD_3404421_7]** )  
- **Non-GAAP Operating Expenses**: $2.1 billion  **[AMD_3414313_7]**  (raised from $2.05 billion  **[AMD_3404421_7]** )  
- **Non-GAAP Other Net Income**: $24 million  **[AMD_3414313_7]**  (raised from $17 million  **[AMD_3404421_7]** )  
- **Non-GAAP Effective Tax Rate**: 13%  **[AMD_3414313_7]**  (no change from prior guidance  **[AMD_3404421_7]** )  
- **Diluted Share Count**: 1.64 billion  **[AMD_3414313_7]**  (no change from prior guidance  **[AMD_3404421_7]** )  

3cdd687da5d144dae77938075bdf29c6594e71c9daaadbd8ab1e306ffb27f639

dc3a15c13aaa0e4cceabbdd575684f55b05adbce048582fd40f60dab28be71f7

29de7b7bf231273c494911c0e5fe866ab163c457160a9ed5913f7acc8ad15e5e

7ae52ce5a03b8f46d8b0629051cdc598e317db132f1931aad023d0caf1a0976c

1. **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 ( **[AMD_3371311_14]** , **[AMD_3371311_19]** ). 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 ( **[AMD_3371311_14]** , **[AMD_3371311_19]** ).

2. **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 ( **[AMD_3371311_19]** , **[AMD_3371311_14]** , **[AMD_3371311_21]** ). Our supply chain partners are supporting us in ramping up production, especially in the second half of the year ( **[AMD_3371311_14]** , **[AMD_3371311_15]** ).

3. **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 ( **[AMD_3371311_20]** , **[AMD_3371311_25]** , **[AMD_3371311_17]** ). We're paying attention to the process race but feel very good about our strategy and competitive position going forward ( **[AMD_3371311_25]** , **[AMD_3371311_20]** , **[AMD_3371311_17]** ).

4. **$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 ( **[AMD_3371311_12]** , **[AMD_3371311_23]** , **[AMD_3371311_9]** ). We see significant growth opportunities as customers plan longer-term roadmaps, and inference demand is expected to exceed training in the next few years ( **[AMD_3371311_12]** , **[AMD_3371311_23]** ).

5. **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 ( **[AMD_3371311_21]** , **[AMD_3371311_13]** ).

6. **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 ( **[AMD_3371311_16]** ).

7. **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 ( **[AMD_3371311_8]** , **[AMD_3371311_18]** ).

167c9b7f759d178159a08342f7de04e614f5d1b32570b61d9a753418527fe362

- **MI300 profitability is currently below corporate average and will take time to improve.** Jean Hu stated that MI300 is a complex product in its first year of ramp with ongoing yield and process improvements, and over time, gross margin should be accretive to corporate average.  **[AMD_3381570_18]**
- **Data center operating profit declined 19% sequentially despite 2% revenue growth, due to increased investments and lower GPU margins.** Jean Hu explained that increased investments in AI and lower gross margins from GPUs were major drivers for the decline in operating income.  **[AMD_3381570_21]**
- **Potential competitive pressure in server CPUs from a competitor launching high-core-count products, which could impact pricing and market share.** Lisa Su acknowledged the competitor's product launch but stated that while pricing is stable, increased competition could pose challenges.  **[AMD_3381570_24]**

0322d169ead4bcd76bd1902f8bf1e9aafa78878de0365c7f8df73c13fccf3b3f

1. **MI300 Revenue Ramp**  
   **Q:** How will MI300 revenues ramp this year and next?  
   **A:** Lisa Su stated that MI300 revenue will continue to ramp in the third and fourth quarters, with positive progress and customer adoption. They expect MI300 to contribute significantly to AMD's growth, and are on track with their annual targets. Looking into next year, she highlighted the expansion of their roadmap with MI325 launching later this year and the MI350 series next year, expressing confidence in the AI market's potential.  **[AMD_3395051_7]** **[AMD_3395051_9]** 

2. **Data Center CPU Growth**  
   **Q:** What are your expectations for EPYC server CPU growth?  
   **A:** Lisa Su is very pleased with EPYC's progress, noting broad adoption across cloud and increased traction in enterprise and third-party cloud instances. She anticipates continued growth in the second half, supported by market improvements and the launch of Turin, which will contribute to revenue. Overall, she sees AMD's ability to continue gaining share in the server market as a significant growth driver.  **[AMD_3395051_8]** 

3. **Gross Margin Outlook**  
   **Q:** Why is Q3 gross margin guidance lower?  
   **A:** Jean Hu explained that while they expect continued gross margin expansion driven by Data Center growth, other factors like better seasonality in the PC business, which is more consumer-focused, and a gradual recovery in the Embedded business are impacting the margin trajectory. She reaffirmed confidence that over the long term, MI300 will be **accretive** to the corporate average gross margin.  **[AMD_3395051_20]** 

4. **MI300 Supply Constraints**  
   **Q:** Is MI300 supply constrained for the annual forecast?  
   **A:** Lisa Su acknowledged that the overall supply chain is tight and will remain so through **2025**. However, AMD has made great progress, ramping supply significantly and exceeding **$1 billion** in the second quarter. They have a line of sight to continue increasing supply in the second half, working closely with supply chain partners.  **[AMD_3395051_14]** 

5. **AI Investment Outlook**  
   **Q:** How will AI monetization concerns affect AMD's position?  
   **A:** Lisa Su believes the industry will continue to invest heavily in AI due to its vast potential. She asserted that for the market size, there will be multiple solutions, and AMD has demonstrated a strong roadmap and the ability to partner with customers. She is confident in AMD's strong technology and partnerships to capitalize on the large AI opportunity.  **[AMD_3395051_12]** 

6. **MI300 Training vs. Inference**  
   **Q:** Are you gaining traction in MI300 training applications?  
   **A:** Lisa Su indicated that while early MI300 deployments have largely been for inference, they also have customers performing training. She expects both inference and training to be growth opportunities for AMD, noting that GPUs remain the architecture of choice for large language models.  **[AMD_3395051_13]** 

7. **Software Investments for MI300**  
   **Q:** What's the challenge in ramping MI300's next wave of customers?  
   **A:** Lisa Su explained that the ROCm software capability has improved substantially, making it easier for customers to get up and running on MI300. They've invested in software assets like the acquisition of **Silo AI** with **300** scientists and engineers to expand their customer base. She emphasized their ongoing investment in software to build out scale for the significant opportunity.  **[AMD_3395051_18]** 

8. **Rack-Level Infrastructure Gap**  
   **Q:** When will AMD close the rack-level infrastructure gap?  
   **A:** Lisa Su acknowledged that systems are becoming more complex and customers need help with integration. She mentioned that AMD has all the necessary components, including Infinity Fabric and networking capabilities through the acquisition of Pensando. AMD plans to invest more in system-level solutions to help customers get to market faster.  **[AMD_3395051_17]** 

9. **Client Business and AI PC**  
   **Q:** How is AMD positioned for AI PCs amidst ARM competition?  
   **A:** Lisa Su is very pleased with their Client business, noting strong products and viewing it as a good revenue growth opportunity. They're launching Zen 5 desktops and notebooks, expecting above-seasonal growth due to strong product launches. Regarding ARM-based competition, she believes AMD's products are well positioned and takes all competition seriously.  **[AMD_3395051_10]** **[AMD_3395051_19]** 

10. **Revenue Guidance Breakdown**  
    **Q:** How does Q3 guidance split among segments?  
    **A:** Lisa Su indicated that with Gaming down double digits, Data Center is the largest contributor to growth, followed by Client, and Embedded with single-digit sequential growth. Both Instinct GPUs and server CPUs will see significant growth in the Data Center segment.  **[AMD_3395051_15]** **[AMD_3395051_16]** 

11. **MI300 Journey vs. EPYC**  
    **Q:** Is MI300's journey similar to EPYC's earlier days?  
    **A:** Lisa Su agreed, stating that MI300 is a long-term play with parallels to the EPYC journey. They've reached key milestones with hardware in volume at multiple hyperscalers and improved software maturity. She emphasized the importance of long-term engagements and investments across multiple generations to open up future opportunities.  **[AMD_3395051_11]** 

865e2bd816ca278003a1594ef2452bccb5826ed211e29c5190f943e3310df288

1. **Data Center GPU Revenue Growth**  
   **Q:** What drove the $500 million increase in 2024 Data Center GPU outlook?  
   **A:** AMD raised its 2024 Data Center GPU revenue guidance from exceeding $4.5 billion to exceeding **$5 billion** due to strong Q3 performance in the Instinct product portfolio, completion of important customer milestones, and ramping above initial expectations.  **[AMD_3404421_8]** 

2. **2025 Data Center GPU Outlook**  
   **Q:** How is AMD thinking about Data Center GPU growth in 2025?  
   **A:** AMD is optimistic about 2025, citing significant investment in AI infrastructure and a strengthening product portfolio, including launching MI325 later this quarter and MI355 in the second half of next year. Customer engagements are broadening with both existing and new cloud and enterprise customers optimizing workloads on AMD Instinct.  **[AMD_3404421_8]** 

3. **Gross Margin Outlook**  
   **Q:** What are the factors impacting gross margin into 2025?  
   **A:** Gross margins are expected to improve driven by the Data Center business, which accounted for over **50%** of revenue in Q3. The recovery in Embedded will also aid margins. However, expansion in the Client business, focused on consumer, which is below corporate average margins, poses a headwind. Operational efficiency and economies of scale are expected to further enhance gross margins.  **[AMD_3404421_9]** 

4. **Supply Chain Capacity for GPUs**  
   **Q:** How is AMD managing supply for MI300 and MI325 GPUs into 2025?  
   **A:** AMD has effectively ramped its supply chain, ensuring capacity despite tight market conditions, contributing to higher Q3 revenue in the Instinct business. The company has planned for significant growth in 2025 and feels confident in its overall supply chain capabilities.  **[AMD_3404421_10]** 

5. **Data Center Segment Growth**  
   **Q:** What is driving sequential revenue growth in Q4?  
   **A:** The largest contributor to sequential revenue growth is the Data Center business, now over **50%** of AMD's revenue in Q3 and expected to continue growing in Q4. The Client segment is also performing well, driven by desktop Zen 5 and notebook AI PC launches. Other segments like Gaming and Embedded are expected to be more modest.  **[AMD_3404421_11]** 

6. **Competitive Position in AI GPUs**  
   **Q:** How does AMD address the perception of being behind competitors in AI GPUs?  
   **A:** AMD believes it has closed much of the gap with competitors. MI325 will compete well with H200, and the MI350 series will compete with Blackwell. The company emphasizes that market constraints in new product generations impact all players and that its portfolio allows for easier data center integration. Customer feedback is positive on AMD's strengthening roadmap.  **[AMD_3404421_20]** 

7. **EPYC and Server CPU Growth**  
   **Q:** How is AMD's EPYC server CPU business performing?  
   **A:** The EPYC business is strong, with improved market conditions and large cloud customers adding capacity. The Zen 4 portfolio was very strong in Q3, and the ramp of Zen 5 Turin has begun. AMD has a robust product stack and sees strength in the server market, enhancing AI opportunities.  **[AMD_3404421_13]** 

8. **PC Market Outlook**  
   **Q:** What is AMD's outlook on the PC market and potential risks?  
   **A:** AMD expects some seasonality into the first half of next year but feels positive about the PC market in 2025, anticipating mid-single-digit growth. Catalysts include AI PCs and Windows 10 end of support. The company has its strongest PC portfolio ever and sees opportunities for growth in both consumer and enterprise segments.  **[AMD_3404421_15]** 

9. **Customer Ramp and Revenue Lumpiness**  
   **Q:** Should we expect lumpiness in Data Center GPU revenue next year?  
   **A:** Revenue may be lumpy due to the timing of large customer deployments, which vary by quarter based on customer build-outs and infrastructure preferences. Despite this, AMD feels good about the overall growth trajectory into 2025.  **[AMD_3404421_18]** **[AMD_3404421_24]** 

10. **Data Center GPU Gross Margins**  
    **Q:** How will gross margins from Data Center GPUs improve?  
    **A:** Currently, gross margins on Data Center GPUs are below corporate average, but as revenue ramps, AMD expects margins to improve. In the longer term, the data center business tends to exceed corporate average margins. The focus is on driving long-term growth and market presence while enhancing gross margins over time.  **[AMD_3404421_26]** 

b79dbc735254017cbfa9a746d5eda65d5a70931766c9e1425d5be92b2192a38f

- **AMD expects a significant double-digit decline in its Gaming segment revenue for 2024**, which could negatively impact overall revenue growth.  **[AMD_3371311_10]**
- **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.  **[AMD_3371311_25]** **[AMD_3371311_20]**
- **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.  **[AMD_3371311_14]**

b67703e2525bf3950a6c1d6c8706c3d2a29dcce90552da12847f569c40bbec82

1. **MI300 Outlook and Supply Constraints**  
   **Q:** What's driving the $500 million increase in MI300 guidance, and how are you handling supply constraints?  
   **A:** The MI300 ramp is going well, with increased visibility from both current and new customers committing to MI300, allowing us to raise the full-year outlook from $3.5 billion to **$4 billion**. Supply is tight in the near term, but we've successfully ramped supply—the fastest product ramp we've done—and will continue to ramp every quarter this year.  **[AMD_3381570_6]** 

2. **MI300 Demand vs Supply Constraints**  
   **Q:** Is the $4 billion MI300 outlook supply constrained or demand constrained?  
   **A:** The $4 billion guidance is **not supply capped**; we have supply capability above that. In the near term, such as in Q2, demand exceeds supply, but overall we have good visibility and are working to increase supply to meet strong AI demand.  **[AMD_3381570_14]** 

3. **Server CPU Growth Expectations**  
   **Q:** How much can server CPU grow this year, and how back-end loaded will it be?  
   **A:** Our data center segment is on a very strong ramp in the second half, including both server CPUs and data center GPUs. While we won't provide specific numbers, we expect overall segment growth to be **very strong double digits**.  **[AMD_3381570_17]** 

4. **Data Center Margins and GPU Impact**  
   **Q:** Are data center margins affected by GPU profitability, and when will GPUs become accretive?  
   **A:** Data center GPU gross margins are currently below the data center average due to initial ramp costs and increased investment in AI. Over time, GPU gross margins will be accretive to the corporate average, but it will take a while to reach server CPU levels.  **[AMD_3381570_21]** 

5. **Server CPU Competitive Pricing**  
   **Q:** Is there risk of aggressive pricing impacting your server CPU ASPs?  
   **A:** Our server CPU average selling prices are stable. The pricing environment is stable, and our performance and energy efficiency translate into total cost of ownership advantages for our customers.  **[AMD_3381570_24]** 

6. **Embedded Business Outlook and Gross Margins**  
   **Q:** How does a slower rebound in embedded impact gross margin expansion?  
   **A:** The embedded business declined more than expected due to weaker demand but is expected to gradually recover in the second half. The primary driver for gross margin expansion is the strong performance of the data center business, which will continue to be the major driver.  **[AMD_3381570_15]** 

7. **MI300 Profitability and Margins**  
   **Q:** When will MI300 profitability exceed the corporate average?  
   **A:** While we're still in the first year of ramping MI300, a complex product, we expect that over time its gross margin should be accretive to the corporate average as process improvements continue.  **[AMD_3381570_18]** 

8. **Turin Server CPU Transition**  
   **Q:** How quickly will the Turin server CPU ramp within your portfolio?  
   **A:** Turin uses the same platform as Genoa, making for an easier ramp. Turin will coexist with Genoa for some time, but we expect a faster transition than from Milan to Genoa, expanding our addressable market with Turin.  **[AMD_3381570_19]** 

9. **Factors Driving Faster MI300 Ramp**  
   **Q:** Is the faster MI300 ramp due to customer collaboration or aggressive build-out plans?  
   **A:** It's both; we're confident in broadening the ramp as we've optimized key models with customers and passed important milestones. There's significant demand for AI compute, and we're working closely with customers to meet that demand.  **[AMD_3381570_22]** 

10. **Rack-Scale Systems and System Integration**  
    **Q:** Do you have all the pieces needed for rack-scale systems in your roadmap?  
    **A:** System integration is critical, and we have all the pieces, including our Infinity Fabric, Pensando's networking expertise, and partnerships with key networking companies. We're specifying full system reference designs for future generations.  **[AMD_3381570_16]** 

11. **Participation in Mega Data Centers**  
    **Q:** Can AMD participate in mega data centers, or is it winner-takes-all?  
    **A:** We believe it's not winner-takes-all and are well-positioned to play in large-scale systems. Customers desire optionality in building out large training environments, and we view this as a very attractive area for AMD.  **[AMD_3381570_26]** 

12. **MI300 Customer Demand**  
    **Q:** Has there been any change in MI300 customer demand or intentions?  
    **A:** Demand remains very strong, with customers moving from initial proofs of concept to pilots and full-scale production. We feel good about ongoing deployments and are building backlog and engagements.  **[AMD_3381570_11]** 

13. **Data Center GPU Roadmap**  
    **Q:** How does your data center GPU roadmap beyond MI300 compare to competitors?  
    **A:** We have a multi-year, multi-generational roadmap beyond MI300, informed by close collaboration with top AI customers. Our chiplet architecture allows flexibility, and we're confident we'll continue to be highly competitive.  **[AMD_3381570_7]** 

14. **MI300 Supply Capacity**  
    **Q:** Do you still have supply capacity beyond the increased MI300 guidance?  
    **A:** Yes, we have supply visibility significantly beyond the updated $4 billion guidance, ensuring we can meet demand that exceeds current expectations.  **[AMD_3381570_12]** 

15. **Server CPU Performance vs Competitors**  
    **Q:** What drove your server CPU performance compared to competitors?  
    **A:** Our server business performed well, with strong double-digit year-over-year growth. Strength in enterprise offset some seasonality, and we continue to gain market share.  **[AMD_3381570_23]** 

16. **Client PC Outlook and AI PCs**  
    **Q:** What's the outlook for your client PC business and AI PC impact?  
    **A:** We expect client revenue to be up sequentially in Q2, with increases in units and ASPs in the second half. Our AI PC products are suited for premium segments, with broader adoption across the portfolio in 2025.  **[AMD_3381570_9]** 

17. **Ultra Ethernet Consortium and Competitiveness**  
    **Q:** How important is the Ultra Ethernet consortium for your system competitiveness?  
    **A:** We're supportive of the open ecosystem and the Ultra Ethernet consortium, but it's not a limiter to our ability to build large-scale systems. We're working internally and with partners to enable Ethernet-based networking solutions.  **[AMD_3381570_25]** 

18. **Gaming Weakness Impact**  
    **Q:** How is significant gaming weakness impacting your overall guidance?  
    **A:** Gaming is down more than **30%** sequentially in Q2 due to weak demand and high inventory levels, with the second half expected to be lower than the first. However, gaming has lower gross margins than our corporate average, so reduced gaming revenue positively impacts our overall gross margin mix.  **[AMD_3381570_20]** 

ba500b8601728c99a369651711b5ba6c3d7390bf57a8cca1967dfc7dc81f8bca

- **AMD is well-positioned to capture growth opportunities in large-scale data center systems, especially in AI compute, and believes they are "very well positioned to play in those large-scale systems."**  **[AMD_3381570_27]**
- **The client business is performing well, with strong demand for Ryzen processors, and AMD expects client revenue to be up sequentially in the second quarter, with opportunities to gain additional commercial PC share based on performance and efficiency advantages.**  **[AMD_3381570_9]**
- **Demand for AMD's data center GPUs is "really strong," with customers moving from initial POCs to pilots to full-scale production, building backlog and engagements, indicating strong future growth.**  **[AMD_3381570_21]**

9a3a0fb4743a7617b0bc2691a7d56a3e86aa77b64f894a650312c2e851a76d00

- **Competitive concerns over AI GPU development timeline:** Investors are worried that AMD's MI series GPUs remain approximately one year behind the industry leader's products, which may hinder AMD's ability to gain market share until this gap is closed  **[AMD_3404421_20]** .
- **Underrepresentation in the Chinese server market:** AMD admits being underrepresented in the China server market, potentially impacting their ability to capture growth opportunities in this significant market  **[AMD_3404421_22]** .
- **Modest growth expected in Gaming and Embedded segments:** AMD anticipates only modest sequential growth in their Gaming and Embedded segments, indicating potential slower performance compared to their Data Center and Client segments  **[AMD_3404421_11]** .

234e0d903e8a58550c7c67e251b4e3d84483d09bf88449b379ca1f8ff78e6c3d

- **AMD's Data Center GPU business is exceeding expectations**, with revenue now expected to exceed **$5 billion** in 2024, up from prior guidance of $4.5 billion, driven by strong customer milestones, ramping of the Instinct product portfolio, and broadening customer engagements.  **[AMD_3404421_16]** **[AMD_3404421_8]**
- **AMD is closing the competitive gap in AI accelerators** with a strengthening product roadmap, including the **MI325X** and upcoming **MI350 series**, receiving positive customer feedback and expected to compete well with the latest offerings from competitors.  **[AMD_3404421_20]**
- **AMD's Data Center business now accounts for over 50% of their revenue**, with continued sequential growth expected, driven by strong momentum in both Enterprise and Cloud segments, and opportunities to gain market share, including in underrepresented regions like **China**.  **[AMD_3404421_22]** **[AMD_3404421_11]**

d8168a29d2b8f55cc0c7d7e89a829e9a36cefde462859cd9bdaa96131d1a3413

- **AMD's MI300 GPUs are experiencing strong demand, with MI300 revenue exceeding **$1 billion** in Q2 and expected to ramp further in Q3 and Q4**.  **[AMD_3395051_7]**  This demonstrates AMD's growing presence in the AI market, particularly in AI GPUs for hyperscalers and OEM customers.
- **AMD is expanding its AI GPU roadmap, planning to launch MI325 later this year and the MI350 series next year, which will be very competitive with Blackwell solutions**.  **[AMD_3395051_7]**  This positions AMD to capture significant growth opportunities in the rapidly expanding AI and data center markets.
- **Strong Data Center business growth is driving significant gross margin expansion, with Data Center revenue nearly **50%** of total revenue and gross margins increasing to **53%** in Q2**.  **[AMD_3395051_20]**  This indicates improving profitability and operational leverage for AMD.

5a1ac597a5a97db47f1fe1178f18de3b649126c71725f719bd60077a8f5b54a8

Advanced Micro Devices Inc (AMD)

Financials