Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: What's driving the increased full-year outlook for MI300 from $3.5 billion to $4 billion? Is it new customers or more bookings from existing ones?
A: Lisa Su, CEO, explained that the increase is due to greater visibility with both current and new customers committing to MI300, reflecting a dynamic market and strong customer engagement. The supply chain has supported this ramp well, despite being tight, and AMD plans to increase supply each quarter.
Q: Can you discuss the Data Center GPU roadmap beyond MI300?
A: Lisa Su, CEO, stated that AMD has a multiyear, multigenerational roadmap with follow-ons to MI300 well in development. The roadmap is flexible due to AMD's chiplet architecture and is shaped by significant customer feedback, ensuring competitiveness and alignment with customer needs.
Q: What is implied in the Q2 guidance for the Data Center CPU side?
A: Lisa Su, CEO, mentioned that AMD expects overall Data Center to be up strong double digits in Q2, with the server segment also expected to grow. The enterprise space is showing early signs of a refresh cycle, and the upcoming Turin launch in the second half of the year is anticipated to further AMD's leadership in the server market.
Q: How do you view the AI PC market and its impact on AMD?
A: Lisa Su, CEO, expressed excitement about the AI PC market, viewing it as a significant opportunity for growth. AMD's AI PC products are positioned for the premium segments, which are expected to drive both unit and ASP increases. The launch of next-generation Ryzen mobile processors, codenamed Strix, is highly anticipated for its performance and efficiency.
Q: What are the expectations for the Embedded segment's recovery?
A: Jean Hu, CFO, noted that the Embedded segment faced more decline than expected due to weak demand in specific markets. However, a gradual recovery is expected in the second half of the year, with improvements in gross margin driven primarily by strong performance in the Data Center segment.
Q: Can you provide insights into the profitability trajectory of the MI300?
A: Jean Hu, CFO, acknowledged that while MI300 is a complex product in its first year of ramp-up, its gross margin is expected to become accretive to AMD's corporate average over time, although it will take a few quarters to reach that level.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
