Advanced Micro Devices Inc at Barclays Global Technology Conference Transcript

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

Question: Thomas O'Malley - Barclays Services Corp - Analyst : No problem at all. So why don't we start with the question that's on everybody's mind as we exit kind of 2025 and going to '26 here? There's been a ton of AI spend announced. We aggregate kind of over $3 trillion. The compute networking portion of that, we can argue about all day. But I think the conversation is centered around the feasibility of actually deploying all of the spend in the time line that's been laid out. Maybe talk to me about kind of what you're seeing in terms of the ability to deploy this and then how it's benefiting AMD in general.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : And increasingly, of very, very late, you've seen the debate shift more from general purpose silicon to can custom silicon scale across multiple customers. And how does that impact general purpose silicon providers? Maybe for the both of you, just what do you think about the ability for a chip that was designed for a specific customer to be used more broadly? And when you see someone like a Google having (inaudible) externally, does that -- do you feel like that cuts into your TAM? Or maybe lay out why that would be a different swim lane than what you're in today.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Perfect. Yes. So take that 25% out of the pie, there's 75% left. If you look at your long-term kind of TAM, you talked about $1 trillion, NVIDIA talks about (inaudible) $3 billion to $4 trillion. Could you maybe walk through why their TAM is so much larger? Is that a function of gross margin? Is it a function of networking? What are they adding in that you guys aren't? Because you would assume you guys are probably closer to apples-to-apples than those numbers would --

Question: Thomas O'Malley - Barclays Services Corp - Analyst : I want to move to something a bit more customer specific in OpenAI. I thought that it was really an unlocking of investors' minds when they saw the deal with OpenAI and was like, wow, this really brings AMD to the centerfold of the conversation with NVIDIA and Broadcom in terms of, one, ability to provide compute that is very, very real in the next 12 months. And then two, you had structure of the deal, which was a bit unique, but also very interesting in that your economics kind of scale with the deployments as well. Maybe one, talk about why you structured the deal you did and the way you did with OpenAI. And then two, just judging by general math and kind of what you've said, it's about a gigawatt of deployment in the back half of next year, how ready is the ecosystem to get that out there with all the other compute announcements? And do you feel secure in your ability to get the product that you need and have those deployments go to market?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Yes, we saw earlier this year at both the Analyst Day and then previously, Sam was onstage with you guys, or a current period of time, talking about how they were very involved in the design of this product. And then you actually got to see Helios in person. Can you talk about like where the differentiation is versus other rack architectures? And then maybe customer engagement since you've had that out there. I would assume customers get a little bit of an earlier peak than us, but something that customers are coming to you and saying, wow, this is really unique. We prefer that solution versus what we've seen so far.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : And then one for Jean on that same topic. You talked about over time with volume, the data center GPU business getting up to corporate gross margin and potentially in the future maybe being better. But rack-scale architecture obviously brings into account a lot of a variety of other subsystems, components, et cetera, that generally are a margin headwind, can you talk about as you see Helios ramp, what that does to gross margins on the corporate level?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : That's why we ask it on stage. All right. So next thing is NVIDIA has brought to market a CPX, which is an interesting, at least from my perspective, a new type of compute where you would imagine it'd be doing something like a prefill functionality. You're seeing this ecosystem evolve very rapidly. That to me looks more like a custom piece of silicon or a CPU in general. But like did that design choice mean that you will necessarily fall in that direction? Is there a reason why they would go in that direction? And a better question, because you obviously don't want to talk about your competitors, is what could you guys do in next generations that that CPX chip does that would improve your kind of performance?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Another one on the technology side. Scale-up architecture is a huge debate today. You guys have been committed to UAL longer term. First generation is UAL (inaudible) Ethernet. More recently, you've seen, with Amazon, T4 using NVLink Fusion, at least in some SKUs. With you guys offering a system architecture or a footprint for others to engage with, how do you see the world evolving? Like do you think that ultimately everyone interacts with the large general purpose silicon providers in terms of back-end ecosystem? Like if you get UAL up and running, like will people kind of use yours as well? How do you see the world evolving? And where do you see scale-up architectures moving in the next three to five years?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : So we went very deep in the tech, pulling back out to the macro. News on China, again, over the last week, we see several iterations of this. I would say the most recent was there was some ability to sell, but it seems like customers in China were not taking that product. Maybe just whatever, I know it's a sensitive issue, how do you feel about the current arrangement? What's changed for you? And do you think it really changes the dynamic of Chinese customers taking your product?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Great. I want to hit a couple of rapid fire as we wind down time here. In client, continue to see really good share gains. ASPs have been a huge positive story as the year has gone along. I actually think that ASPs have held a little bit better than even you guys have described in the back half of the year. What's driving that? And can that continue? Should we be seeing some normalization there into Q4, Q1?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : And then your competitor has talked about supply tightness in client as well as server. Are you guys seeing this as well? And is this an opportunity for you guys to gain more share? Or how do you view this dynamic?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Well, we've run out of time here. I very much appreciate you both being here. Thank you so much. And it sounds like things are going quite well.