Advanced Micro Devices Inc at Bank of America Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Vivek Arya - Bank of America Securities - Analyst : Lot of interest in AMD. So Jean, maybe a very eventful week as we were just talking Computex this week, Lisa gave the keynote session, I think a really great if you could just kind of help us get up to speed on what are the main announcements from Computex in and what gets you the most excited about the opportunity for AMD?

Question: Vivek Arya - Bank of America Securities - Analyst : Excellent. Thank you, Jean. Thank you for the overview. So let's start with the everyone's two favourited words A&I. So on MI300, you raised the forecast for this year from over 3.5 billion to over 4 billion. Is that a supply constrained number, let's say, if you get enough supply in memory and cohorts and so forth, can that number be 5 billion or 6 billion, like what is dictating that number to be 4 billion, not higher this year?

Question: Vivek Arya - Bank of America Securities - Analyst : Got it. There is the launch of the 325 x in Q4. Does that provide upside potential also?

Question: Vivek Arya - Bank of America Securities - Analyst : Okay. And then finally, from a supply perspective, are you getting adequate support, especially from the memory companies because there are often reports about whether it's supply constraints, whether its product is not qualified or issues et cetera. Are you satisfied with the memory supply that you have?

Question: Vivek Arya - Bank of America Securities - Analyst : Got it. So it's most -- it's more a supply question rather than a technical or qualification.

Question: Vivek Arya - Bank of America Securities - Analyst : Very impressive.

Question: Vivek Arya - Bank of America Securities - Analyst : There is a -- actually let me change the question this way. Most hyperscale's, they pretty much have a good sense of what they will deploy over the next several quarters because they have to get the land, power and write all those physical conditions are ready before they start getting all the electronics and compute networking and so forth. So is there -- are those decisions to dynamic as we go towards the end of the year and where I'm coming from is just because your competitor has a very large product introduction in Q4, does that crowd out your opportunity near term in any way or that is not how decisions are made that they're already kind of set, right, as to which product will go where.

Question: Vivek Arya - Bank of America Securities - Analyst : How do we think Lisa about, sorry, Jean, about the strategic positioning, which is on one side, you have a competitor that has been in the market for a long time, has all the software and developer support and scale and whatnot. On the other side you have a lot of custom chips, right, which, just due to the nature, can claim to be optimized and cost effective. So how is AMD carving a niche for itself and make sure that it is sustainable over time.

Question: Vivek Arya - Bank of America Securities - Analyst : Got it. And the last question on that, you mentioned the 400 billion addressable opportunity out in '27, '28. Does the AMD still feel confident comfortable with that kind of addressable opportunity and then more important than that what are your market share aspirations as part of that?

Question: Vivek Arya - Bank of America Securities - Analyst : Got it. Now on the data centre server CPU side, could you give us the perspective on both the AI workloads and then kind of the non AI workloads because again, there is a perception that all these AI CapEx dollars are cannibalizing a lot of the non-high and traditional server CPU demand. And you get to see both of it so it will be really useful to get your perspective on that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 3:40PM, AMD.OQ - Advanced Micro Devices Inc at Bank of America Global Technology Conference

Question: Vivek Arya - Bank of America Securities - Analyst : Got it. So just kind of a more near-term question, I think Q1 service CPU sort of in line with normal seasonality, right, down high single digits, low double-digit and so forth. How are you thinking about the rest of the year? Do you think seasonality is the right way to model it or given the new product introduction that can help drive some above seasonal trend also in the backup?

Question: Vivek Arya - Bank of America Securities - Analyst : Got it. Makes sense. Then as we move quickly to PCs, a lot of announcements on this AIPC, right to mentioned that Lisa announced AMD, 6 point of product rights at 50 tops. I think there seems to be this race between tops. I think AMD lunar -- into lunar Lake is like 45 or so -- 48. I think Valcom is 45 or so. How important is just chasing this kind of tops performance. What will be the -- first of all, when do a AIPCs become kind of tangible? And then secondly, is it really just this stops performance that will be the differentiator between these different product offerings?

Question: Vivek Arya - Bank of America Securities - Analyst : Got it. ARM recently said that they expect MB&O ARM based PCs to be 50% of the market right over the next five years. I imagine you would not agree with that perspective, right?

Question: Vivek Arya - Bank of America Securities - Analyst : I thought of -- and by the way, it's not just us total PC market actually said Windows-based because they already have appetite. That's 10%, 12%. So effectively, they're saying that the overhang in the market. So what can the PC side do? Because we have seen Microsoft just loudly right support call com, that's kind of the exclusivity to the end of the year, et cetera. So how big of a threat is ARM as say it becomes bigger than can AMD pivot to ARM-based architectures also?

Question: Vivek Arya - Bank of America Securities - Analyst : Makes sense. And since you are the CFO, I thought I would ask a financial question also in the last forty five seconds, which is on gross margins. Do you think this annual cadence of launching products, right, helps your top-line growth and share but do you think it can work against your gross margin ambitions right, but over long term is to get to over 57%.

Question: Vivek Arya - Bank of America Securities - Analyst : Even MI, you think gross margin can become accretive despite the faster?

Question: Vivek Arya - Bank of America Securities - Analyst : Terrific. I have two more pages of questions, but we are out of time. Thank you so much.