Advanced Micro Devices, Inc. Q1 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Revenue: 5.5 billion dollars, up 2 percent year over year, down 11 percent sequentially.
  • Gross margin: 52 percent, up 230 basis points year over year.
  • Strong performance in Data Center and Client segments offset weakness in Gaming and Embedded.
  • Data Center GPU (MI300) ramp described as the fastest in AMD’s history, surpassing 1 billion dollars in sales in under two quarters.
  • AMD raises full-year Data Center GPU revenue outlook from 3.5 billion dollars to more than 4 billion dollars.

Segment Performance

Data Center

  • Revenue: 2.3 billion dollars, up 80 percent year over year, up 2 percent sequentially.
  • Strength driven by Instinct MI300 GPU shipments and double-digit growth in EPYC server CPUs.
  • Operating income: 541 million dollars, up 266 percent year over year.
  • AMD believes it gained server CPU market share in Q1.
  • Significant cloud adoption: nearly 900 AMD-powered public instances globally.
  • EPYC enterprise adoption accelerating, citing deployments at American Airlines, DBS, Shell, Emirates Bank, and others.
  • Next-gen Turin (Zen 5) sampling broadly, launching later in 2024 with 30 percent more platforms in development vs. the prior generation.
  • MI300X deployments expanding across Microsoft, Meta, Oracle; over 100 customers developing on MI300.

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Operator: Greetings, and welcome to the AMD First Quarter 2024 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mitch Haws, Vice President, Investor Relations. Thank you. Mitch, you may begin. Mitchell Haws: Thank you, and welcome to AMD's First Quarter 2024 Financial Results Conference Call. By now, you should have had the opportunity to review a copy of our earnings press release and the accompanying slides. If you have not had the chance to review these materials, they can be found on the Investor Relations page of amd.com. We will refer primarily to non-GAAP financial measures during today's call, and the full non-GAAP to GAAP reconciliations are available in today's press release and the slides posted on our website. Participants on today's call are Dr. Lisa Su, our Chair and Chief Executive Officer; and Jean Hu, our Executive Vice President, Chief Financial Officer and Treasurer. This is a live call and will be replayed via webcast on our website. Before we begin, I would like to note that Mark Papermaster, Executive Vice President and Chief Technology Officer, will attend the TD Cowen Technology, Media and Telecom Conference on May 29; and Jean Hu, Executive Vice President, Chief Financial Officer and Treasurer, will attend the JPMorgan Global Media and Communications Conference on Tuesday, May 21; the Bank of America Global Technology Conference on Wednesday, June 5; and the J

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