Q1 2025 Advanced Micro Devices Inc Earnings Call

May 6, 2025

Question.

Speaker Change: Anyone should require operator assistance. Please press star zero on your telephone keypad and as a reminder, this conference is being recorded it is now my pleasure to introduce to you, Matt Ramsey, Vice President financial strategy and Investor Relations.

Thank you Sir you may begin.

Unknown Executive: In an answer session we'll follow the If anyone should require operator assistance, please call 1-866-333-7483 or call 1-866-333-7483 press star zero And as a reminder, this conference Matt Ramsey, Vice President, Financial Strategy Thank you, sir.

Speaker Change: Thank you and welcome to Amd's 2025 first quarter 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.

[music].

Speaker Change: Greetings and welcome to the AMD first quarter 2025 conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. And as a reminder, this conference is being recorded.

Speaker Change: If you have not had the chance to review these materials. They can be found on the investor relations portion of AMD Dot com.

Speaker Change: We will refer primarily to non-GAAP financial measures during today's call. The full non-GAAP to GAAP reconciliations are available in today's press release and the slides posted on our website.

Matt Ramsay: Thank you and welcome to AMD's 2025 First Quarter Financial Results Conference Call. By now, you should have had the opportunity to review a copy of our earnings press release in the accompanying slide. If you have not had the chance to review these materials, they can be found on the investor relations portion of AMD.com.

Speaker Change: Participants on today's conference call are Dr. Lisa Su, our chair and Chief Executive Officer, and Jean Hu Executive Vice President Chief Financial Officer, and Treasurer. This is a live call and will be replayed via webcast on our website.

Matt Ramsay: We will refer primarily to non-GAAP financial measures during today's call. The full non-GAAP to GAAP reconciliations are available in today's press release and the slides posted on our website.

Speaker Change: Before we begin I would like to take note that Mark Papermaster, Our executive Vice President and Chief Technology Officer will attend the TD Cowen TMT Conference on Wednesday May 28, and Jean who will attend the bank of America Global Technology Conference on Tuesday June 3rd.

Matt Ramsay: Participants on today's conference call are Dr. Lisa Su, our Chair and Chief Executive Officer, and Jean Hu, Executive Vice President, Chief Financial Officer, and Treasurer. This is a live call and will be replayed via webcast on our website.

Speaker Change: Today's discussion contains forward looking statements based on our current beliefs assumptions and expectations speak only of today and as such involve risks and uncertainties that could cause actual results to differ materially from our current expectations.

Matt Ramsay: Before we begin, I would like to take note that Mark Papermaster, our Executive Vice President and Chief Technology Officer, will attend the TD Cowen TMT Conference on Wednesday, May 28, and Jean Hu will attend the Bank of America Global Technology Conference on Tuesday, June 3. Today's discussion contains forward-looking statements based on our current beliefs, assumptions, and expectations. Speak only of today and as such involve risks and uncertainties that could cause actual results to differ materially from our current expectations.

Speaker Change: Please refer to the cautionary statements on our press release for more information on factors that could cause actual results to differ materially.

Speaker Change: Before we begin I would like to take note that Mark Papermaster, Our executive Vice President and Chief Technology Officer will attend the TD Cowen TMT Conference on Wednesday May 28, and Jean who will attend to Bank of America Global Technology Conference on Tuesday June 3rd.

You will also find detailed discussion of our risk factors in our filings with the SEC in particular Amd's. Most recent quarterly report on Form 10-Q, and annual report on Form 10-K, and with that I would like to hand, the call over to Lisa.

Matt Ramsay: Please refer to the cautionary statement on our press release for more information on factors that could cause actual results to differ materially.

Lisa: Thank you, Matt and good afternoon to all of those listening today.

Lisa: We delivered an outstanding start to the year, despite the evolving dynamics related to tariffs and the regulatory environment.

Matt Ramsay: You will also find detailed discussion of our risk factors in our filings with the SEC, in particular, AMD's most recent quarterly report on Form 10-Q and annual report on Form 10-K.

Lisa: Growth accelerated for the fourth consecutive quarter year over year, driven by strength in our core businesses and expanding data center and AI momentum.

Speaker Change: Please refer to the cautionary statement on our press release for more information on factors that could cause actual results to differ materially.

Lisa Su: And with that, I would like to hand the call over to Lisa. Thank you, Matt, and good afternoon to all those listening today. We delivered an outstanding start to the year, despite the evolving dynamics related to tariffs and the regulatory environment. Growth accelerated for the fourth consecutive quarter year over year driven by strength in our core businesses and expanding data center and AI momentum. Revenue and EPS both exceeded consensus estimates as Instinct AI Accelerator, EPYC, and Ryzen CPU sales grew significantly year over year. As a result, first quarter revenue increased 36% year-over-year to $7.4 billion, as our data center and client and gaming segments both grew by a large double-digit percentage.

Lisa: Revenue and EPS, both exceeded consensus estimates as instinct, AI accelerator epic and ryzen CPU sales grew significantly year over year.

Lisa: As a result first quarter revenue increased 36% year over year to $7 4 billion as our data center and client and gaming segments. Both grew by a large double digit percentage.

Lisa Su: Thank you, Matt and good afternoon to all of those listening today.

Lisa Su: We delivered an outstanding start to the year, despite the evolving dynamics related to tariffs and the regulatory environment.

Lisa: We expanded gross margin year over year for the fifth straight quarter and increased net income by 55% driven by a higher overall percentage of datacenter product sales and a richer ryzen processor mix.

Lisa Su: Growth accelerated for the fourth consecutive quarter year over year, driven by strength in our core businesses and expanding data center and AI momentum.

Lisa Su: Revenue and EPS, both exceeded consensus estimates as instinct, AI accelerator epic and ryzen CPU sales grew significantly year over year.

Lisa: Despite the uncertain macroeconomic backdrop, our first quarter performance highlights the strength of our differentiated product portfolio and execution and positions us well for strong growth in 2025.

Lisa Su: We expanded gross margin year-over-year for the fifth straight quarter and increased net income by 55% driven by a higher overall percentage of data center product sales and a richer Ryzen processor For more information visit www.smarttech.com Despite the uncertain macroeconomic backdrop, our first quarter performance highlights the strength of our differentiated product portfolio and execution, and positions us well for strong growth in 2025. Turning to the segments, data center segment revenue increased 57% year-over-year to $3.7 billion. We gained server CPU share driven by the ramp of our latest 5th Gen EPYC turn processors and sustained demand for 4th Gen EPYC.

Lisa Su: As a result first quarter revenue increased 36% year over year to $7 4 billion as our data center and client and gaming segments. Both grew by a large double digit percentage.

Lisa: Turning to the segments data Center segment revenue increased 57% year over year to $3 7 billion.

Lisa: We gained server CPU share driven by the ramp of our latest fifth Gen epic turn processors and sustained demand for fourth Gen epic high.

Lisa Su: We expanded gross margin year over year for the fifth straight quarter and increased net income by 55% driven by a higher overall percentage of datacenter product sales and a richer ryzen processor mix.

Lisa: Hyperscale demand remains strong as cloud providers expanded epic deployments to power their critical infrastructure and public services.

Lisa Su: Despite the uncertain macroeconomic backdrop, our first quarter performance highlights the strength of our differentiated product portfolio and execution and positions us well for strong growth in 2025.

Lisa: More than 30, new instances launch from Alibaba, AWS, Google Oracle, Tencent and others in the quarter, including the initial wave of fifth Gen Epic turn instances.

Lisa Su: Turning to the segments data Center segment revenue increased 57% year over year to $3 7 billion.

Lisa Su: Hyperscaler demand remained strong as cloud providers expanded EPYC deployments to power their critical infrastructure in public service. More than 30 new instances launched from Alibaba, AWS, Google, Oracle, Tencent, and others in the quarter, including the initial wave of 5th Gen EPYC Tern In addition, AWS launched new FPGA-accelerated instances in the quarter, powered by EPYC processors with Xilinx Vertex FPGAs that are optimized for data and compute-intensive workloads like genomics, multimedia processing, network security, and cloud-based video broadcast. Every major cloud provider is deep in development on TURN programs, with a steady stream of public instances and internal deployments expected to ramp into production over the coming quarter.

Lisa: In addition, AWS launched new FPGA accelerated instances in the quarter powered by epic processors with Xilinx vertex fpga's that are optimized for data and compute intensive workloads like genomics multimedia processing network security and cloud based video broadcasting.

Lisa Su: We gained server CPU share driven by the ramp of our latest fifth Gen epic turn processors and sustained demand for fourth Gen epic high.

Lisa Su: Hyperscale demand remains strong as cloud providers expanded epic deployments to power their critical infrastructure and public services.

Lisa: Every major cloud provider is deepen development on turn programs with a steady stream of public instances, an internal deployment is expected to ramp into production over the coming quarters.

Lisa Su: More than 30, new instances launch from Alibaba, AWS, Google Oracle, Tencent and others in the quarter, including the initial wave of fifth Gen Epic turn instances.

Lisa: Enterprise adoption of epic instances was very strong in the quarter.

Lisa Su: In addition, AWS launched new FPGA accelerated instances in the quarter powered by epic processors with Xilinx vertex fpga's that are optimized for data and compute intensive workloads like genomics multimedia processing network security and cloud based video broadcasting.

Lisa: The number of epic powered cloud instances activated by Forbes 2000 enterprise customers more than doubled year over year, including new wins with Internet Native screaming transportation and financial services and social media companies.

Lisa: For example, crowd strike achieved major performance and cost improvements by broadly deploying epic instances across its multi cloud infrastructure.

Lisa Su: Enterprise adoption of EPYC instances was very strong in the quarter. The number of EPYC-powered cloud instances activated by Forbes 2000 Enterprise customers more than doubled year-over-year, including new wins with internet-native streaming, transportation, financial services, and social media For example, CrowdStrike achieved major performance and cost improvements by broadly deploying EPYC instances across its multi-cloud infrastructure. At the same time, we're also actively partnering with leading application and cloud providers to deploy EPYC-optimized solutions tailored for specialized industry verticals. Siemens launched their latest software-defined vehicle solution powered by EPYC CPUs and Radeon Pro GPUs on Azure, leveraging digital twin technology to significantly speed up automotive design and validation.

Lisa Su: Every major cloud provider is deepen development on turn programs with a steady stream of public instances, an internal deployment is expected to ramp into production over the coming quarters.

Lisa: At the same time, we're also actively partnering with leading application and cloud providers to deploy epic optimized solutions tailored for specialized industry verticals.

Lisa Su: Enterprise adoption of epic instances was very strong in the quarter.

Speaker Change: Siemens launched their latest software defined vehicle solution powered by <unk> Cpus and Radeon Pro Gpus on Azure, leveraging digital twin technology to significantly speed up automotive design and validation.

Lisa Su: The number of epic powered cloud instances activated by Forbes 2000 enterprise customers more than doubled year over year, including new wins with Internet Native screaming transportation and financial services and social media companies.

Speaker Change: Oracle launched a new version of its exit data database platform, which is used by more than half of the fortune Global 100.

Lisa Su: For example, crowd strike achieved major performance and cost improvements by broadly deploying epic instances across its multi cloud infrastructure.

Speaker Change: The latest extra data X 11, and has been optimized for fifth Gen epic processors deliver up to 25% faster performance and transaction processing and analytics compared to the prior generation.

Lisa Su: At the same time, we're also actively partnering with leading application and cloud providers to deploy epic optimized solutions tailored for specialized industry verticals.

Lisa Su: Oracle launched a new version of its Exadata database platform, which is used by more than half of the Fortune Global 100. The latest Exadata X11M has been optimized for 5th Gen EPYC processors to deliver up to 25% faster performance in transaction processing and analytics compared to the prior generation. Turning to enterprise on-prem adoption, EPYC CPU sales grew by a large double-digit percentage year-over-year for the seventh straight quarter, driven by new public sector wins and high-volume deployments with large automotive, semiconductor, financial services, retail, energy, and technology companies. We have built significant enterprise momentum over the last few years, as our partners expanded the number of EPYC-based platforms to more than 450, and we scaled our joint go-to-market program.

Speaker Change: Turning to enterprise on Prem adoption epic CPU sales grew by a large double digit percentage year over year for the seventh straight quarter, driven by new public sector wins in high volume deployments with large automotive semiconductor financial services retail energy and technology companies.

Speaker Change: Oracle launched a new version of its exit data database platform, which is used by more than half of the fortune Global 100.

Speaker Change: We have built significant enterprise momentum over the last few years as our partners expanded the number of epic based platforms to more than 450, and we scaled our joint go to market programs.

Speaker Change: As a result epic is now deployed by all of the top 10 telecom aerospace and semiconductor companies nine out of the top 10 automotive seven out of the top 10 manufacturing and six out of the top 10 and energy companies on the Forbes 2000.

Speaker Change: We expect enterprise adoption to accelerate over the coming quarters as more than 150 turn platforms become broadly available from Dell, Cisco HPE, Lenovo supermicro and others.

Lisa Su: As a result, EPYC is now deployed by all of the top 10 telecom, aerospace, and semiconductor companies, 9 out of the top 10 automotive, 7 out of the top 10 manufacturing, and 6 out of the top 10 energy companies on the Forbes 2000. We expect enterprise adoption to accelerate over the coming quarters as more than 150 turn platforms become broadly available from Dell, Cisco, HPE, Lenovo, Supermicro, and others. Looking forward, we see a clear path to continued share gains as customers ramp their 5th Gen EPYC offerings that deliver unmatched performance, efficiency, and TCO across every major cloud and enterprise data center workforce.

Speaker Change: Looking forward, we see a clear path to continued share gains as customers ramp their fifth gen epic offerings that deliver unmatched performance efficiency and tcl across every major cloud and enterprise data Center workload.

Speaker Change: We pass key milestones in April to begin manufacturing fifth Gen epic at Tsmc's, New Arizona Fab with first production shipments expected in the second half of 2025.

We expect enterprise adoption to accelerate over the coming quarters as more than 150 turn platforms become broadly available from Dell, Cisco HPE, Lenovo supermicro and others.

Speaker Change: Longer term, we announced our Nextgen epic Venice processors are the lead <unk> products for Tsmc's two nanometer process node.

Speaker Change: Then as silicon is in our labs, and performing well with bring up and validation progressing to plan to support a 2026 launch.

Lisa Su: We passed key milestones in April to begin manufacturing 5th Gen EPYC at TSMC's new Arizona fab with first production shipments expected in the second half of 2025. Longer term, we announced our next-gen EPYC Venice processors are the lead HPC products for TSMC's 2-nanometer process nodes. Venice Silicon is in our lives and performing well with bring up and validation progressing to plan to support a 2026 launch. Turning to our data center AI business, revenue increased by a significant double digit percentage year over year, as MI325x shipments ramped to support new enterprise and cloud deployment. More than 35 MI300 series platforms are in production from all the leading service providers, supporting the expanding number of Instinct GPU deployments with cloud, enterprise, and AI customization.

Speaker Change: Yeah.

Speaker Change: Turning to our data center AI business revenue increased by a significant double digit percentage year over year at $3 25 X shipments ramp to support new enterprise and cloud deployments.

Speaker Change: We pass key milestones in April to begin manufacturing fifth Gen epic at Tsmc's, New Arizona Fab with first production shipments expected in the second half of 2025.

More than 35 mm 300 series platforms are in production from all the leading service providers supporting the expanding number of instinct GPU deployments with cloud enterprise and AI customers.

Speaker Change: Longer term, we announced our Nextgen epic Venice processors are the lead <unk> products for Tsmc's two nanometer process node.

Several hyperscale or has expanded their use of instinct accelerators to cover an increasing range of generative AI search ranking and recommendation use cases.

Speaker Change: Then as silicon is in our labs, and performing well with bring up and validation progressing to plan to support a 2026 launch.

Speaker Change: Yeah.

We also added multiple tier one cloud and enterprise customers in the quarter, including one of the largest frontier model developers that is now using instinct gpus to serve a significant portion of their daily influence traffic.

Lisa Su: Several hyperscalers expanded their use of instinct accelerators to cover an increasing range of generative AI search, ranking, and recommendation use cases. We also added multiple Tier 1 cloud and enterprise customers in the quarter, including one of the largest frontier model developers that is now using Instinct GPUs to serve a significant portion of their daily inference traffic. The depth and breadth of our customer engagements continues to expand as breakthroughs in large-scale AI models, like OpenAI's O3 and DeepSeq's R1, drive increased demand for traditional inferencing and increasingly as a critical part of pre-training. The industry-leading memory capacity and bandwidth of our Instinct portfolio is ideally suited for these workloads, and we are actively working with multiple customers to scale Instinct from single-node deployments to distributed inferencing clusters.

Speaker Change: More than 35 mm 300 series platforms are in production from all the leading service providers supporting the expanding number of instinct GPU deployments with cloud enterprise and AI customers.

Speaker Change: The depth and breadth of our customer engagements continues to expand as breakthroughs in large scale AI models like open AI <unk> and deep seeks our one drive increased demand for traditional inferencing and increasingly as a critical part of pre training.

Speaker Change: Several hyperscale or has expanded their use of instinct accelerators to cover an increasing range of generative AI search ranking and recommendation use cases.

Speaker Change: The industry, leading memory capacity and bandwidth of our instinct portfolio is ideally suited for these workloads and we are actively working with multiple customers to scale instinct from single node deployments to distributed inferencing clusters.

Speaker Change: We also added multiple tier one cloud and enterprise customers in the quarter, including one of the largest frontier model developers that is now using instinct gpus to serve a significant portion of their daily influence traffic.

Speaker Change: Training engagements also ramped in the quarter as multiple tier one hyperscale AI and enterprise customers scaled instinct GPU clusters to train internal and Nextgen frontier models.

Speaker Change: In parallel, we're making meaningful progress with sovereign AI deployments as countries expand investments to establish domestic nation scale AI infrastructure.

Lisa Su: Training engagements also ramped in the quarter as multiple tier one hyperscale, AI, and enterprise customers scaled Instinct GPU clusters to train internal and next-gen frontier. In parallel, we're making meaningful progress with sovereign AI deployments as countries expand investments to establish domestic, nation-scale AI infrastructure. In February, we announced a strategic partnership with G42 to build one of France's most powerful AI compute facilities powered by Instinct Accelerator.

Speaker Change: In February we announced a strategic partnership with $3 42 to build one of France's most powerful AI compute facilities powered by instinct accelerators.

Speaker Change: On the AI software front, we significantly accelerated our release cadence in the first quarter shifting from quarterly Rocco updates to delivering ready to deploy training and inferencing containers on a biweekly basis that include performance optimizations and support for the latest libraries kernels and algorithms.

Speaker Change: In parallel, we're making meaningful progress with sovereign AI deployments as countries expand investments to establish domestic nation scale AI infrastructure.

Speaker Change: We expanded our open source community enablement in the quarter, making significantly more instinct compute infrastructure available to enable developers to automatically build test and deploy updates to Rockwell code nightly.

Lisa Su: On the AI software front, we significantly accelerated our release cadence in the first quarter, shifting from quarterly ROCm updates to delivering ready-to-deploy training and inferencing containers on a bi-weekly basis that include performance optimizations and support for the latest libraries, kernels, and algorithms. We expanded our open source community enablement in the quarter, making significantly more instant compute infrastructure available to enable developers to automatically build, test, and deploy updates to ROCm code nightly. As a result, more than 2 million models on Hugging Face now run out of the box on AMD. We're also enabling an increasing number of models to launch with DayZero support for Instinct Accelerators, including Meta's LLAMA4, Google's GEMMA3, and DeepSeq's R1 models that were released in the first quarter.

Speaker Change: In February we announced a strategic partnership with $3 42 to build one of France's most powerful AI compute facilities powered by instinct accelerators.

Speaker Change: As a result more than 2 million models on hugging face now run out of the box on AMD.

Speaker Change: We're also enabling an increasing number of models to launch with day zero support for instinct accelerators, including Meadows Lama for Google's, Jemma <unk> and deep seeks our one models that were released in the first quarter.

Speaker Change: Beyond launch we are delivering regular software updates that increased performance for new models. For example in the weeks following the launch of deep seeks or one model. We introduced Rocco optimizations that enabled 300 to deliver leadership inferencing throughput.

Speaker Change: We released <unk> six four in the quarter with major upgrades that increased training and inferencing performance across popular AI frameworks like pie torch jacks and BLM.

Speaker Change: As a result more than 2 million models on hugging face now run out of the box on AMD.

Lisa Su: Beyond launch, we are delivering regular software updates that increase performance for new models. For example, in the weeks following the launch of DeepSeq's R1 model, we introduced ROCm optimizations that enabled MI300 to deliver leadership inferencing throughput. We released ROCm 6.4 in the quarter with major upgrades that increase training and inferencing performance across popular AI frameworks like PyTorch, JAX, and VLLM. The release also adds multiple ease-of-use features, including new cluster management tools that simplify the scaling and optimization of large-scale instant deployment.

The release also adds multiple ease of use features including new cluster management tools that simplify the scaling and optimization of large scale instinct deployments.

Speaker Change: Turning to our AI solutions capabilities earlier this quarter, we completed our acquisition of <unk> systems, adding world class systems design expertise to complement our silicon and software leadership.

Speaker Change: With <unk>, we can provide ready to deploy rack level AI solutions based on industry standards built with AMD Cpus Gpus and networking, reducing deployment time for Hyperscale and accelerating time to market for OEM and ODM partners.

Speaker Change: We released <unk> six four in the quarter with major upgrades that increased training and inferencing performance across popular AI frameworks like pie torch jacks and BLM.

Lisa Su: Turning to our AI solutions capabilities, earlier this quarter, we completed our acquisition of ZT Systems, adding world-class systems design expertise to complement our silicon and software leadership. With CT, we can provide ready to deploy rack level AI solutions based on industry standards built with AMD CPUs, GPUs, and network For more information, please visit us at www.smarttech.com. Reducing deployment time for hyperscalers and accelerating time to market for OEM and ODM partners. The team is fully engaged in already co-designing with key customers on rack-level designs optimized for our upcoming MI400 series and working with customers and OEM partners to accelerate time-to-market for our MI350 series.

Speaker Change: The release also adds multiple ease of use features including new cluster management tools that simplify the scaling and optimization of large scale instinct deployments.

Speaker Change: The team is fully engaged and already co designing with key customers on rack level designs optimized for our upcoming 400 series and working with customers and OEM partners to accelerate time to market for <unk> hundred 50 series.

Speaker Change: We have received significant interest in <unk> manufacturing business and expect to announce a strategic partner shortly.

Speaker Change: We began sampling our nexgen <unk> 350 series with multiple customers in the first quarter and remain on track to begin accelerated production by mid year.

Speaker Change: <unk> hundred 50 series performance is very strong based on the advances in our cdna for architecture.

Lisa Su: We have received significant interest in ZTE's manufacturing business and expect to announce a strategic partner shortly. We began sampling our next-gen MI350 series with multiple customers in the first quarter and remain on track to begin accelerated production by mid-year. MI350 series performance is very strong based on the advances in our CDNA4 architecture. We designed CDNA4 to deliver leadership performance across a wide range of AI workloads, increasing memory capacity and bandwidth 1.5x, adding support for new data types, and improving network efficiency to deliver 35x higher throughput and performance compared to MI300x. Customer interest in the MI350 series is very strong, setting the stage for broad deployment in the second half of this year.

We designed cdna for to deliver leadership performance across a wide range of AI workloads, increasing memory capacity and bandwidth one five X, adding support for new data types and improving network efficiency to deliver 35 X higher throughput and performance compared to <unk> 300 ex.

Speaker Change: We have received significant interest in <unk> manufacturing business and expect to announce a strategic partner shortly.

Speaker Change: We began sampling our next Gen. <unk> 350 series with multiple customers in the first quarter and remain on track to begin accelerated production by mid year.

Speaker Change: Customer interest in the <unk> 350 series is very strong setting the stage for broad deployment in the second half of this year.

Speaker Change: As one example, we are partnering with Oracle to deploy a large scale cluster powered by <unk> 355 X accelerators fifth Gen Epic turn processors and Polaris 400, AI Nicks.

<unk> hundred 50 series performance is very strong based on the advances in our cdna for architecture.

Speaker Change: We designed cdna for to deliver leadership performance across a wide range of AI workloads, increasing memory capacity and bandwidth one five X, adding support for new data types and improving network efficiency to deliver 35 X higher throughput and performance compared to <unk> 300 ex.

Speaker Change: This multibillion dollar initiative highlights the expanding AMD and OCI partnership and a growing demand for AMD instinct to power. The next wave of large scale AI infrastructure.

Lisa Su: As one example, we are partnering with Oracle to deploy a large-scale cluster powered by MI355x accelerators, 5th Gen EPYC turn processors, and Polara 400 AI NICs. This multi-billion dollar initiative highlights the expanding AMD and OCI partnership and the growing demand for AMD Instinct to power the next wave of large-scale AI infrastructure. Looking ahead, our MI400 series development remains on track to launch next year. The MI400 series is designed to deliver leadership performance for both inferencing and training, scaling seamlessly from single servers to full data center deployment. Early customer feedback has been very positive, marking a major step forward in our Instinct roadmap, and significantly expanding our AI Accelerator TAM as customers plan broader Instinct deployments to power a larger share of their AI infrastructure.

Speaker Change: Looking ahead, our 400 series development remains on track to launch next year.

Speaker Change: Customer interest in the <unk> 350 series is very strong setting the stage for broad deployment in the second half of this year.

Speaker Change: My 400 series is designed to deliver leadership performance for both inferencing and training scaling seamlessly from single servers to full data center deployments.

Speaker Change: As one example, we are partnering with Oracle to deploy a large scale cluster powered by <unk> 355 X accelerators fifth Gen Epic turn processors and Polaris 400, AI Nicks.

Speaker Change: Early customer feedback has been very positive marking a major step forward in our instinct roadmap and significantly expanding our AI accelerator Tam as customers plan broader instinct deployments the power a larger share of their AI infrastructure.

Speaker Change: I'm looking forward to sharing more details on the <unk> hundred 50 series future 400 rack scale solutions and the growing customer adoption of our instinct platforms at our advancing AI event on June 12.

Speaker Change: Looking ahead, our 400 series development remains on track to launch next year.

Speaker Change: My 400 series is designed to deliver leadership performance for both inferencing and training scaling seamlessly from single servers to full data center deployments.

Speaker Change: Turning to our client and gaming segment segment revenue increased 28% year over year to $2 9 billion.

Lisa Su: I'm looking forward to sharing more details on the MI350 series, future MI400 rack scale solutions, and the growing customer adoption of our Instinct platforms at our Advancing AI event on June 12th.

Speaker Change: Client revenue grew 68% year over year, marking our fifth consecutive quarter of revenue share gains.

We delivered record client CPU asps.

Speaker Change: Driven by a richer mix of high end desktop and mobile ryzen processors.

Lisa Su: Turning to our client and gaming segment, segment revenue increased 28% year-over-year to $2.9 billion. Client revenue grew 68% year-over-year, marking our fifth consecutive quarter of revenue share We delivered record-client CPU ASP, driven by a richer mix of high-end desktop and mobile Ryzen processors. Desktop channel sellout increased by more than 50% year-over-year. We set new sellout records in multiple regions as our latest generation Ryzen processors became the CPU of choice for gamers, topping bestseller lists at leading global e-tailers. To build on this momentum, we extended our desktop CPU portfolio with the launch of our 16-core Ryzen 9950X3D processor that delivers significantly higher gaming and productivity performance than the competition.

Speaker Change: Desktop channel sell out increased by more than 50% year over year.

Speaker Change: We set new sellout records in multiple regions as our latest generation Ryzen processors became the CPU of choice for gamers topping bestseller lists at leading global E Tailers.

Speaker Change: Turning to our client and gaming segment segment revenue increased 28% year over year to $2 9 billion.

Speaker Change: To build on this momentum we extended our desktop CPU portfolio with the launch of our 16 core Ryzen 90, 950, <unk> processor that deliver significantly higher gaming and productivity performance than the competition.

Speaker Change: Client revenue grew 68% year over year, marking our fifth consecutive quarter of revenue share gains.

Speaker Change: We delivered record client CPU asps.

Speaker Change: Driven by a richer mix of high end desktop and mobile ryzen processors.

In mobile AMD based notebooks sell through was very strong in the quarter. We also saw strong demand for our latest generation AI PC processors as sales ramped increasing by more than 50% quarter on quarter.

Speaker Change: Desktop channel sell out increased by more than 50% year over year.

Speaker Change: We set new sellout records in multiple regions as our latest generation Ryzen processors became the CPU of choice for gamers topping bestseller lists at leading global E Tailers.

Speaker Change: The first notebooks powered by our new high end Ryzen, AI, Max plus and the first mainstream ryzen seven and five 300 series processors launched to very positive reviews.

Lisa Su: In mobile, AMD-based notebook sell-through was very strong in the quarter. We also saw strong demand for our latest generation AI PC processors as sales ramped, increasing by more than 50% quarter-on-quarter. The first notebooks powered by our new high-end Ryzen AI Max Plus and the first mainstream Ryzen AI 7 and 5 300 series processors launched to very positive reviews. These new processors set the standard for traditional computing and graphics performance, while also delivering unmatched AI capabilities and battery life, positioning Ryzen as the CPU of choice for gaming, ultra-thin, and commercial notebooks. Demand for AMD-based commercial PCs was also very strong in the quarter.

Speaker Change: These new processors set the standard for traditional computing and graphics performance, while also delivering unmatched AI capabilities and battery life positioning ryzen has the CPU of choice for gaming Ultra thin and commercial notebooks.

Speaker Change: In mobile AMD based notebooks sell through was very strong in the quarter. We also saw strong demand for our latest generation AIP see processors as sales ramped increasing by more than 50% quarter on quarter.

Speaker Change: Demand for AMD based commercial Pcs was also very strong in the quarter.

Speaker Change: Ryzen pro PC sell through grew more than 30% year over year, driven by new end customer wins, and an 80% increase from 2024 in the number of AMD powered commercial systems from HP Lenovo Dell in issues with.

Speaker Change: The first notebooks powered by our new high end Ryzen, AI, Max plus and the first mainstream ryzen seven and five 300 series processors launched to very positive reviews.

Speaker Change: We closed multiple wins with large auto energy health care financial services and telecom companies in the quarter.

Lisa Su: Ryzen Pro PC sell-through grew more than 30% year-over-year, driven by new end-customer wins and an 80% increase from 2024 in the number of AMD-powered commercial systems from HP, Lenovo, Dell, and Asus. We closed multiple wins with large auto, energy, healthcare, financial services, and telecom companies in the quarter. Looking more broadly across the PC market, we remain confident we can grow client processor revenue well ahead of the market in 2025, led by expanding adoption of our desktop channel and consumer and commercial notebook portfolio, as well as a richer mix.

Speaker Change: Looking more broadly across the PC market, we remain confident we can grow client processor revenue well ahead of the market in 2025 led by expanding adoption of our desktop channel and consumer and commercial notebook portfolio as well as a richer mix.

Speaker Change: Demand for AMD based commercial Pcs was also very strong in the quarter.

Turning to our gaming business results gaming revenue decreased 30% year over year as higher Radeon graphics sales were more than offset by lower semi custom sales.

Speaker Change: We closed multiple wins with large auto energy health care financial services and telecom companies in the quarter.

While our semi custom Soc sales decline year over year console channel inventories have normalized and dessert and demand signals have strengthened for 2025.

Speaker Change: For PC gaming, we launched our Radeon 90, 70 series to strong demand as our new rdna for architecture delivers leadership performance for mainstream gamers.

Lisa Su: Turning to our gaming business results, gaming revenue decreased 30% year-over-year as higher Radeon graphics sales were more than offset by lower semi-custom sales. While our semi-custom SoC sales decline year-over-year, console channel inventories have normalized and demand signals have strengthened for 2025. For PC gaming, we launched our Radeon 9070 series to strong demand as our new RDNA4 architecture delivers leadership performance for mainstream gamers. First week sellout set a record and was more than 10x higher than our previous best Radeon launch. Demand remains very strong and we are working closely with our board partners to replenish inventory weekly and meet the sustained demand.

Speaker Change: First week sellout set a record and was more than 10 X higher than our previous best Radeon launch.

Speaker Change: Turning to our gaming business results gaming revenue decreased 30% year over year as higher Radeon graphics sales were more than offset by lower semi custom sales.

Speaker Change: Demand remains very strong and we are working closely with our board partners to replenish inventory weekly and need the sustained demand.

Speaker Change: We also introduced MSR for our first machine learning based rendering technology that deliver significantly higher frame rates and more immersive gaming experiences <unk>.

Speaker Change: While our semi custom Soc sales decline year over year console channel inventories have normalized and dessert and demand signals have strengthened for 2025.

For PC gaming, we launched our Radeon 90, 70 series to strong demand as our new rdna for architecture delivers leadership performance for mainstream gamers.

Speaker Change: <unk> has already enabled and over 30 games with support expected to reach 75 titles by year end.

Speaker Change: Turning to our embedded segment first quarter revenue decreased 3% year over year to $823 million.

Speaker Change: First week sellout set a record and was more than 10 X higher than our previous best Radeon launch.

Lisa Su: We also introduced FSR-4, our first machine learning based rendering technology that delivers significantly higher frame rates and more immersive gaming experience. FSR4 is already enabled in over 30 games with support expected to reach 75 titles by year-end.

Speaker Change: And then as demand continues to recover gradually we expect improving demand in the test and measurement communications and aerospace markets will drive a return to growth in the second half of 2025.

Speaker Change: Demand remains very strong and we are working closely with our board partners to replenish inventory weekly and need the sustained demand.

Speaker Change: We also introduced MSR for our first machine learning based rendering technology that deliver significantly higher frame rates and more immersive gaming experiences.

Speaker Change: We completed initial shipments of our cost optimized Spartan ultra scale, plus FPGA and second generation Versal AI edge Soc ease to meet growing demand for AI at the edge.

Lisa Su: Turning to our embedded segment, first quarter revenue decreased 3% year-over-year to $823 million. Embedded demand continues to recover gradually. We expect improving demand in the test and measurement, communications, and aerospace markets will drive a return to growth in the second half of 2025. We completed initial shipments of our cost-optimized Spartan UltraScale Plus FPGAs and second-generation Versal AI Edge SoCs to meet growing demand for AI at the edge. As a part of continuing to grow our Embedded x86 business, we launched our EPYC Embedded 9005 Series CPUs that deliver leadership performance for networking, storage, and industrial edge applications.

Speaker Change: <unk> has already enabled and over 30 games with support expected to reach 75 titles by year end.

Speaker Change: As a part of continuing to grow our embedded X 86 business, we launched our epic embedded 9005 series Gpus deliver leadership performance for networking storage and industrial edge applications.

Speaker Change: Turning to our embedded segment first quarter revenue decreased 3% year over year to $823 million.

Speaker Change: Embedded demand continues to recover gradually.

Speaker Change: Cisco selected our new epic embedded processors for their latest high end firewall solutions and IBM is using them to power. Its latest storage scale system 6000 for performance intensive enterprise analytics and AI workloads.

Speaker Change: We expect improving demand in the test and measurement communications and aerospace markets will drive a return to growth in the second half of 2025.

We completed initial shipments of our cost optimized Spartan ultra scale, plus FPGA and second generation Versal AI edge Soc to meet growing demand for AI at the edge.

Speaker Change: We also released our latest Vitus AI software suite expanding support for the latest models and accelerating edge AI deployment across a broader range of applications further strengthening our leadership in the rapidly emerging edge AI market.

Speaker Change: As a part of continuing to grow our admitted X 86 business, we launched our epic embedded 9005 series Gpus deliver leadership performance for networking storage and industrial edge applications.

Lisa Su: Cisco selected our new EPYC-embedded processors for their latest high-end firewall solutions, and IBM is using them to power its latest storage-scale System 6000 for performance-intensive enterprise analytics and AI workloads. We also released our latest Vitus AI software suite, expanding support for the latest models and accelerating edge AI deployment across a broader range of applications, further strengthening our leadership in the rapidly emerging edge AI market.

In summary, our strong first quarter results.

Speaker Change: Okay.

Speaker Change: It reflects the momentum we are building across our business.

Speaker Change: While we faced some headwinds from the dynamic macro and regulatory environments, including the recently announced export controls for instinct <unk> 308 extra shipments to China. We believe there are more than offset by the powerful tailwind from our leadership product portfolio.

Lisa Su: In summary, our strong first quarter results and second quarter outlooks reflect the momentum we are building across our business. While we face some headwinds from the dynamic macro and regulatory environments, including the recently announced export controls for Instinct MI308x shipments to China, we believe they are more than offset by the powerful tailwinds from our leadership product portfolio. Against this backdrop, we remain confident we can deliver strong double-digit-percented revenue growth in 2025 based on accelerating share gains with our latest generation of Zen5 EPYC and Ryzen CPUs and Radeon GPUs. and ramping production of our Instinct MI350 series accelerators in the second half of the year to support an expanded set of customers and AI workloads.

Speaker Change: Against this backdrop, we remain confident we can deliver strong double digit percentage revenue growth in 2025 based on accelerating share gains with our latest generation of <unk> epic and ryzen Cpus and Radeon Gpus and ramping production of our instinct <unk> 350 series accelerators in the second half.

Speaker Change: In summary, our strong first quarter results and second quarter outlook reflect the momentum we are building across our business.

Speaker Change: While we faced some headwinds from the dynamic macro and regulatory environments, including the recently announced export controls for instinct mid 300 <unk>.

Speaker Change: For the year to support an expanded set of customers and AI workloads.

Speaker Change: We also expect full year growth in our semi custom business and for our embedded business to return to year over year growth in the second half of the year driven by the reduced inventory levels and improving demand environment.

Speaker Change: Eight extra shipments to China, we believe there are more than offset by the powerful tailwind from our leadership product portfolio.

Speaker Change: To capitalize on our unprecedented growth opportunities and deliver our next major growth arc, we are expanding investments in our product and technology Roadmaps go to market initiatives and full stack AI software and data center scale solutions capabilities were.

Lisa Su: We also expect full year growth in our semi-custom business and for our embedded business to return to year-over-year growth in the second half of the year, driven by the reduced inventory levels and improving demand environment. To capitalize on our unprecedented growth opportunities and deliver our next major growth arc, we are expanding investments in our product and technology roadmaps, go-to-market initiatives, and full-stack AI software and data center-scale solutions capabilities. We're also doubling down on our execution to deliver and, where possible, accelerate our industry-leading roadmaps. We view the current environment as a strategic opportunity to further differentiate AMD, as we deliver an expanding product portfolio that combine leadership compute and AI capabilities for data centers, edge, PCs, and embedded end devices.

Speaker Change: We're also doubling down on our execution to deliver and where possible accelerate our industry leading roadmaps.

Speaker Change: Half of the year to support an expanded set of customers and AI workloads.

Speaker Change: We view the current environment as a strategic opportunity to further differentiate AMD as we deliver an expanding product portfolio that combined leadership compute and AI capabilities for data centers edge, Pcs and embedded and devices.

Speaker Change: Now I'd like to turn the call over to Jim to provide some additional color on our first quarter results Jean.

Jim: Thank you Lisa and good afternoon, everyone I will start with the reveal our financial results and then provide our current outlook for the second quarter of fiscal 2025.

Speaker Change: We're also doubling down on our execution to deliver and where possible accelerate our industry leading roadmaps.

Speaker Change: As a reminder for comparative purposes.

Jean Hu: Now I'd like to turn the call over to Jean to provide some additional color on our first quarter results. Jean? Thank you, Lisa. And good afternoon, everyone. I'll start with a review of our financial results and then provide our current outlook for the second quarter of fiscal 2025. As a reminder, for comparative purposes, our fourth quarter fiscal year 2025 financial statement disclosures include the combination of our client and the gaming businesses into a single reportable segment to align with how we manage the business. We continue to provide distinct revenue disclosures for our data center, client, gaming, and embedded business.

Speaker Change: First quarter fiscal year 2025 financial statement that these closures include the combination of our client and the gaming businesses into a single reportable segment to align with how we manage the business with.

Speaker Change: Now I'd like to turn the call over to Jim to provide some additional color on our first quarter results Jean.

Speaker Change: We continue to provide <unk> to revenue disclosures to fly with data center client kidney and embedded businesses.

Jim: Thank you Lisa and good afternoon, everyone I'll start with the reveal our financial results and then provide our current outlook for the second quarter of fiscal 2025.

Speaker Change: We are pleased with our record first quarter revenue of $7 4 billion exceeding the high end of our guidance up 36% year over year, driven by 57% revenue growth in the datacenter segment and a 28% of revenue growth in the client and the gaming segment.

Speaker Change: As a reminder for comparative purposes.

Speaker Change: First quarter fiscal year 2025 financial statement that these closures include the combination of our client and gaming businesses into a single reportable segment to align with how we manage the business with.

Revenue declined 3% sequentially due to lower revenue in the embedded and data center segments, partially offset by sequential growth in the client and the gaming segment.

Jean Hu: We are pleased with our record first quarter revenue of $7.4 billion, exceeding the high end of our guidance, up 36% year-over-year, driven by 57% revenue growth in the data center segment and a 28% revenue growth in the client and the gaming segment.

Speaker Change: We continue to provide <unk> to revenue disclosures to fly with data center <unk> and embedded businesses.

Speaker Change: Gross margin was 54% up 140 basis points from a year ago.

Speaker Change: We are pleased with our record first quarter revenue of $7 4 billion exceeding the high end of our guidance up 36% year over year, driven by 57% revenue growth in the datacenter segment and a 28% revenue growth in the client and the gaming segment.

Speaker Change: Operating expenses were $2 2 billion, an increase of 28% year over year as we continue to invest aggressively in go to market activities and in R&D to address the significant growth opportunities ahead of us.

Jean Hu: Revenue declined 3% sequentially due to lower revenue in the embedded and data center segments, partially offset by sequential growth in the client and the gaming segment. Growth margin was 54%, up 140 basis points from a year ago. Operating expenses were $2.2 billion, an increase of 28% year-over-year, as we continue to invest aggressively in go-to-market activities and in R&D to address the significant growth opportunities ahead of us. Operating income was $1.8 billion, representing a 24% operating margin.

Speaker Change: Operating income was $1 8 billion, representing a 24% operating margin.

Speaker Change: Revenue declined 3% sequentially due to lower revenue in the embedded and data center segments, partially offset by sequential growth in the client and the gaming segment.

Speaker Change: Texas interest expenses and other it was 213 million.

Speaker Change: For the first quarter of 2025 diluted earnings per share was <unk> 96 cents, an increase sell for 55% year over year.

Speaker Change: Gross margin was 54% up 140 basis points from a year ago.

Speaker Change: Now turning to our reportable segments stacking.

Speaker Change: Stacking me the data Center data Center segment revenue was $3 7 billion up 57% year over year, primarily driven by continued the CPUC share gains across both cloud and enterprise customers and strong growth of AMD instinct Gpus.

Jean Hu: taxes, interest expenses, and the other was $213 million. For the first quarter of 2025, diluted earning per share was $0.96, an increase of 55% year-over-year. Now turning to our reportable segment. Starting with the data center, data center segment revenue was $3.7 billion, up 57% year-over-year, primarily driven by continued CPU server share gains across both the cloud and enterprise customers, and a strong growth of AMD Instinct GPU. On a sequential basis, data center segmented revenue decreased 5%. Data center segment operating income was $932 million or 25% of revenue compared to $541 million or 23% a year.

Speaker Change: Operating income was $1 8 billion, representing a 24% operating margin.

Speaker Change: Taxes interest expenses and other it was 213 million.

Speaker Change: On a sequential basis, the datacenter segment revenue decreased 5%.

Speaker Change: For the first quarter of 2025 additive to earnings per share with 96 cents, an increase sell for 55% year over year.

Speaker Change: Data Center segment operating income was 900, and a $32 million or 25% of revenue compared to 541 million or 23% a year ago.

Speaker Change: Now turning to our reportable segments stack.

Speaker Change: Clay on the gaming segment revenue was $2 9 billion up 28% year over year <unk>, primarily by strong customer demand for our latest generation.

Speaker Change: Gen five AMD ryzen processor.

Speaker Change: Offset by lower semi custom revenue.

Speaker Change: On a sequential basis, the datacenter segment revenue decreased 5%.

Speaker Change: <unk> revenue was $2 3 billion up 68% year on year.

Jean Hu: Client and gaming segment revenue was $2.9 billion, up 28% year-over-year, driven primarily by strong customer demand for our latest generation ZEN5 with AMD Ryzen processors. partially offset by lower semi-customer revenue. Client revenue was $2.3 billion, up 68% year-over-year. More than half of the growth was driven by higher ASPs from a richer mix of high-end Ryzen processors. On a sequential basis, client and gaming segment revenue increased by 2%, primarily driven by stronger than seasonal performance of our client product portfolio, and increased semi-customer product revenue. Client and gaming segment operating income was $496 million, or 17% of revenue, compared to $237 million, or 10% of a year ago, driven by operating leverage on higher revenue.

Speaker Change: Data Center segment operating income was $932 million or 25% of revenue compared to 541 million or 23% a year ago.

Speaker Change: More than half of the growth was driven by higher Asp's at pharma retreat makes so for high end the ryzen processors.

Speaker Change: On a sequential basis climbed in the gaming segment revenue increased by 2%.

Speaker Change: Clay on the gaming segment revenue was $2 9 billion up 28% year over year <unk>, primarily by strong customer demand for our latest generation.

Speaker Change: <unk> driven by stronger than seasonal performance of our clay on the product portfolio and the increased semi customer product revenue.

Speaker Change: Gen five AMD ryzen processor.

Speaker Change: <unk> segment operating income was 496 million or 17% of revenue compared to 237 million or 10% of a year ago, driven by operating leverage on higher revenue.

Speaker Change: Generally offset by lower semi custom revenue.

Speaker Change: Clay on the revenue was <unk>, two 3 billion up 68% year over year.

Speaker Change: More than half of the growth was driven by higher Asp's at pharma retreat makes so for high end the ryzen processors.

Speaker Change: In <unk> segment revenue was $823 million down 3% year over year embedded that demand continues to recover gradually.

Speaker Change: On a sequential basis climbed in the gaming segment revenue increased by 2%.

Speaker Change: <unk> driven by stronger than seasonal performance of our clay on the product portfolio and the increased semi customer product revenue.

Speaker Change: Sequentially embedded was down 11% consistent with our expectations.

Speaker Change: <unk> segment operating income was 328 million or 40% of revenue compared to 342 million or 41% a year ago.

Speaker Change: <unk> segment operating income was 496 million or 17% of revenue compared to $200 to 37 million or 10% of a year ago, driven by operating leverage on higher revenue.

Jean Hu: Embedded segment revenue was $823 million. Down 3% year-over-year, embedded demand continues to recover gradually. sequentially embedded was down 11% consistently without expectation. Embedded Segment Operating Income was $328 million or 40% of revenue compared to $342 million or 41% a year ago.

Speaker Change: Turning to the balance sheet and the cash flow during the quarter, we generated in nine countries and a 39 million in cash from operations and our free cash flow for the quarter was $727 million.

Speaker Change: In <unk> segment revenue was $823 million down 3% year over year embedded that demand continues to recover gradually.

Speaker Change: We returned 749 million to shareholders through the repurchase of common stock and our repurchase program. We have a 4 billion remaining in our share repurchase authorization.

Speaker Change: Sequentially embedded was down 11% consistent with our expectations.

Jean Hu: Turning to the balance sheet and the cash flow. During the quarter, we generated $939 million in cash from operations. Now free cash flow for the quarter was $727 million. We returned $749 million to shareholders through the repurchase of common stock and our repurchase program. We have $4 billion remaining in our share repurchase authorization. At the end of the quarter, cash, cash equivalents and short-term investment was $7.3 billion. Within the quarter, we raised $1.5 billion of debt and issued $950 million of commercial paper to help fund our acquisition of ZT Systems, which was completed on March 31st.

Speaker Change: <unk> segment operating income was 328 million or 40% of revenue compared to 342 million or 41% a year ago.

Speaker Change: At the end of the quality of our cash cash equivalents and short term investments was $7 3 billion within the quarter at <unk>, one $5 billion of debt and issued 950 million of commercial paper to help fund our acquisition of <unk> systems, which was completed on March 30.

Speaker Change: First.

Speaker Change: We returned 749 million to shareholders through the repurchase of common stock and our repurchase program. We have a 4 billion remaining in our share repurchase authorization.

Speaker Change: Now turning to our second quarter 2025 outlook as a reminder, in April a new <unk> license requirement was put in place for a nine three or eight shipments to China. The.

At the end of the quality of our cash cash equivalents and short term investments was $7 3 billion within the <unk> to $1 five being able for debt and issued 950 million of commercial paper to help fund our acquisition of <unk> systems, which was completed on March 30.

The impact of Lee Chief included in our guidance.

Speaker Change: We expect revenue to be approximately $7 4 billion plus or minus the 300 million.

Jean Hu: Now turn to our second quarter 2025 outlook. As a reminder, in April, a new export license requirement was put in place for MI308 shipments to China, the impact of which is included in our guidance. We expect revenue to be approximately $7.4 billion plus or minus $300 million. This includes an estimated $700 million revenue reduction as a result of the new X-Bot license requirement. Despite this headwind, the middle point of our guidance represents 27% year-over-year revenue growth. For the full year 2025, we estimated the revenue impact due to the export license requirement to be approximately $1.5 billion.

Speaker Change: This includes an estimated $700 million revenue reduction as a result of the new export license requirement.

Speaker Change: Despite this headwind.

Speaker Change: <unk>.

Speaker Change: Now turning to our second quarter 2025 outlook as a reminder, in April a new <unk> license requirement was put in place for a 93 or eight shipments to China. The.

Speaker Change: The middle point of our guidance represents 27% year over year revenue pool.

Speaker Change: For the full year 2025, we estimated the revenue impact due to the export license requirements to be approximately one 5 billion.

Speaker Change: The impact of Lee Chief included in our guidance.

Speaker Change: Sequentially, we expect client in the gaming segment revenue to increase by double digit percentage in.

Speaker Change: We expect revenue to be approximately $7 4 billion plus or minus the 300 million.

Speaker Change: This includes an estimated $700 million revenue reduction as a result of the new export license requirement.

Speaker Change: <unk> segment revenue to be flattish and we expect data center segment revenue to decrease due to the exclusion of I might three or eight revenue.

Speaker Change: Despite this headwind.

Speaker Change: The middle point of our guidance represents 27% year over year revenue pool.

In addition, we expect second quarter non-GAAP gross margin is it.

Jean Hu: Sequentially, we expect client and the gaming segment revenue to increase by double digit percentage. Embedded segmented revenue to be flattish and we expect data center segmented revenue to decrease due to the exclusion of MI308 revenue. In addition, we expect second quarter non-deficit growth margin is estimated to be 43%, inclusive of approximately $800 million in charges for inventory and related reserves. Excluding this charge, our non-deficit growth margin would be approximately 54%. Non-GAF operating expenses to be approximately $2.3 billion, which includes approximately $50 million in OPEX due to the addition of the ZT system designed The financials for the ZTE manufacturing business will be reported as discontinued operations starting in the second quarter.

Speaker Change: Estimated to be 43% inclusive of approximately 800 million in charges for inventory and related rates there.

Speaker Change: For the full year 2025, we estimated the revenue impact due to the export license requirements to be approximately one 5 billion.

Speaker Change: Excluding this charge our non-GAAP gross margin will be approximately 54%.

Speaker Change: Sequentially, we expect client in the gaming segment revenue to increase by double digit percentage in.

Speaker Change: non-GAAP operating expenses to be approximately $2 3 billion, which includes approximately 15 million in opex due to the addition of S. E T systems design.

Speaker Change: <unk> segment revenue to be flattish and we expect data center segment revenue to decrease due to the exclusion of <unk> three or <unk> revenue.

Speaker Change: The financials for the Z key manufacturing business it will be reported as discontinued operations starting in the second quarter.

Speaker Change: In addition, we expect second quarter non-GAAP gross margin is it <unk>.

Speaker Change: Estimated to be 43% inclusive of approximately 800 million in charges for inventory and related rates there.

Speaker Change: We expect net interest and other expenses to be 5 million due to the debt associated with a Z T system transaction.

Speaker Change: Excluding this charge our non-GAAP gross margin will be approximately 54%.

Speaker Change: non-GAAP effective tax rate to be 13% and a diluted share count is expected to be approximately $1 64 billion shares which includes 9 million shares related to the <unk> transaction.

Speaker Change: non-GAAP operating expenses to be approximately $2 3 billion, which includes approximately 50 million in opex due to the addition of S. E T systems design key.

Jean Hu: We expect net interest and other expenses to be $5 million due to the debt associated with the ZT system transaction. Non-GAP effective tax rate to be 13% and the diluted share count is expected to be approximately 1.64 billion shares, which includes 9 million shares related to the ZT transaction.

Speaker Change: Looking forward, despite ongoing macro and achieved a policy related uncertainties. We believe the investments, we're making will position us well to address the large growth opportunities ahead.

Speaker Change: The financials for the Z key manufacturing business it will be reported as discontinued operations starting in the second quarter.

Speaker Change: We expect net interest and other expenses to be $5 million due to the debt associated with a Z T system transaction.

Speaker Change: Expand the use of high performance computing across all our end market.

Speaker Change: In closing 2025 is off to a strong start as we continue to execute on key strategic and financial goals.

Jean Hu: Looking forward, despite ongoing micro and trade policy-related uncertainties, we believe the investment we are making will position us well to address the large growth opportunities ahead as AI expands the use of high-performance computing across all our end markets. In closing, 2025 is off to a strong start as we continue to execute on key strategic financial goals. We delivered strong top-line revenue growth, expanded growth and operating margins, and closed the key acquisition of ZT Systems to expand and accelerate our data center GPU and systems roadmap.

Speaker Change: We delivered a strong topline revenue growth expanded gross and operating margins and are close to the key acquisition of XE cases tends to expand and accelerate our datacenter GPU and assistance the road maps.

Matt Ramsey: With that I'll turn it back to Matt for the Q&A session.

Matt Ramsey: Thank you very much Jim John can you go ahead and pull the callers for the Q&A session. Please thank you.

Speaker Change: Expand the use of high performance computing across all our end market.

Speaker Change: In closing 2025 is off to a strong start as we continue to execute on key strategic and financial goals.

Speaker Change: Thank you, Matt we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue. You May press star two to remove yourself from the queue.

Matt Ramsay: With that, I'll turn it back to Matt for the Q&A session. Thank you very much, Jean.

Speaker Change: For participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.

Matt Ramsay: John, can you go ahead and pull the callers for the Q&A session, please? Thank you. Thank you, Matt.

Speaker Change: In the interest of time, we ask that you. Please limit yourself to one question and one follow up thank you.

Unknown Executive: We will now be conducting a question and If you would like to ask a question, please press star 1. You may press star 2 to remove yourself from the queue.

With that I'll turn it back to Matt for the Q&A session.

Speaker Change: Please pull for questions.

Matt: Thank you very much Jim John can you go ahead and pull the callers for the Q&A session. Please thank you.

Speaker Change: And the first question comes from the line of Joshua Buchalter with TD Cowen. Please proceed with your question.

Joshua Buchalter: Thank you and thank you for taking my questions.

Speaker Change: Congrats on the results.

Joshua Buchalter: In the interest of time we have First question comes from the line of Joshua Buchalter Thank you for taking my questions and congrats on the results. I was hoping you may expand on the drivers of upside in both the print and in particular the guide. How should we think about 2Q growth by segment and wanted to double click on client in particular, you know, that business is up 67% year over year in the first quarter and there's obviously a lot of concerns on pull-ins. So I was hoping you could walk through some of the drivers of the strength in client in particular and how you're thinking about that in 2Q.

Speaker Change: Can you maybe expand on the drivers of upside in both the print and in particular the guide.

Speaker Change: How should we think about Q2 growth by segment and wanted to double click on client in particular that businesses up 67% year over year in the first quarter and there's obviously a lot of concerns on Poland. So I was hoping you could walk through some of the drivers of the strength in client in particular, and how youre thinking about that in Q2. Thank you.

Speaker Change: For participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.

Speaker Change: In the interest of time, we ask that you. Please limit yourself to one question and one follow up thank you.

Speaker Change: Please pull for questions.

Speaker Change: And the first question comes from the line of Joshua Buchalter with TD Cowen. Please proceed with your question.

Matt Ramsey: Okay, great Josh Thanks for the question.

Matt Ramsey: Look we were very pleased with our performance in Q1, we actually saw strength across a number of our businesses. We saw strength certainly in the client business.

Joshua Buchalter: Thank you and thank you for taking my questions.

Speaker Change: Congrats on the results.

Speaker Change: I was hoping you may be expand on the drivers of upside in both the print and in particular the guide.

Very strong desktop performance.

Speaker Change: How should we think about Q2 growth by segment and wanted to double click on client in particular that businesses up 67% year over year in the first quarter and there's obviously a lot of concerns on Poland. So was hoping you could walk through some of the drivers of the strength in client in particular, and how you're thinking about that in Q2. Thank you.

Matt Ramsey: <unk> strength in our gaming.

Matt Ramsey: <unk> as well, which was really due to our strong radeon launch and we also saw some strength in our datacenter business across both stronger CPU and GPU. So those are some of the drivers for our Q1 performance and in particular on your question of client performance. We've certainly looked very carefully at the ordering <unk>.

Lisa Su: Thank you. Okay, great, Josh. Thanks for the question. Look, we were very pleased with our performance in Q1. We actually saw a strength across a number of our businesses. We saw strength, certainly in the client business, very strong desktop performance. We saw strength in our gaming business as well, which was really due to our strong Radeon launch. And we also saw some strength in our data center business across both stronger CPU and GPU. So those are some of the drivers for our Q1 performance. And in particular, on your question of client performance, you know, we've certainly looked very carefully at the ordering patterns and what customers are telling us.

Speaker Change: Okay, great Josh Thanks for the question.

Speaker Change: Look we were very pleased with our performance in Q1, we actually saw strength across a number of our businesses. We saw strength certainly in the client business.

Matt Ramsey: Returns and what customers are telling us we have not seen a lot of tariff related activity in that business I would say, though what we have seen is a real stronger mix and strength in our overall asps. So the desktop channel, which is an area, where we have a very strong gaming products right now.

Speaker Change: Very strong desktop performance.

Speaker Change: Saw strength in our gaming.

Speaker Change: <unk> as well, which was really due to our strong radeon launch and we also saw some strength in our datacenter business across both stronger CPU and GPU. So those are some of the drivers for our Q1 performance and in particular on your question of client performance. We've certainly looked very carefully at the ordering.

Matt Ramsey: <unk> actually are performed well above seasonality in Q1 and that is really the strength of the asps. There. So that's what we saw in Q1 and then to your question about the guide for Q2.

Lisa Su: We have not seen a lot of tariff-related activity in that business. I would say, though, what we have seen is a real stronger mix and strength in our overall ASPs. So the desktop channel, which is an area where we have a very strong, you know, gaming products right now, actually performed well above seasonality in Q1. And, you know, that is really, you know, the strength of the ASPs there. So that's what we saw in Q1. And then to your question about the guide for Q2, as Gene mentioned, you know, we do have the new export control limitation on MI308.

Speaker Change: Patterns and what customers are telling us we have not seen a lot of tariff related activity in that business I would say, though what we have seen is a real stronger mix and strength in our overall asps. So the desktop channel, which is an area, where we have a very strong gaming products right now.

Speaker Change: As gene mentioned, we do have the new export control limitation on 300, <unk>. So we have taken out that revenue, which is a $700 million headwind in Q2, but with that we have.

Speaker Change: Have a strong outlook given the strength across the rest of our businesses. So we continue to see strength in client going into the second quarter again, the desktop business continued to perform above typical seasonality. We're also seeing the beginning of the commercial ramp which is a place where we have traditionally been quite underrepresented.

Speaker Change: Now.

Speaker Change: <unk> performed well above seasonality in Q1 and that is really the strength of the asp's. There. So that's what we saw in Q1 and then to your question about the guide for Q2.

Lisa Su: So we have taken out that revenue, which is a $700 million headwind in Q2. But with that, we have a strong outlook, given the strength of So we continue to see strength in clients going into the second quarter. Again, the desktop business continues to perform above typical seasonality. We're also seeing the beginning of the commercial ramp, which is a place where we have traditionally been quite underrepresented. We see continued strength in gaming, I would say much better than typical seasonality. That is really our AIB business with the Radeon products ramping, as well as consoles have now drained all of their inventory.

Speaker Change: We see continued strength in gaming I would say much better than typical seasonality that is really our AIB business with the radeon products are ramping as well as consoles have now trained all of their inventory and so they are starting their ramp into the year.

Speaker Change: As gene mentioned, we do have the new export control limitation on <unk>. So we have taken out that revenue, which is a $700 million headwind in Q2, but with that.

Speaker Change: And have a strong outlook given the strength across the rest of our businesses. So we continue to see strength in client going into the second quarter again, the desktop business continues to perform above typical seasonality. We're also seeing the beginning of the commercial ramp which is a place where we have traditionally been quite underrepresented.

Speaker Change: And from a data center side, we see sequential growth on the CPU side, we see the GPU are right on track minus the China export controls and so for all those reasons.

Pleased with where the performance of the businesses right now yeah, I'll just add one pointed to weather. These such as said on the client business. We had really strong performance in Q1 sequentially clay on the revenue largely flattish versus Q4, when you look behind that though our units actually declined at double D.

Lisa Su: And so they are starting their ramp into the year. And from a data center side, we see sequential growth on the CPU side. We see the GPU right on track, minus the China export controls. And so for all of those reasons, we're pleased with where the performance of the business is right now.

Speaker Change: So the revenue flattish is largely driven by the ASP increase sequentially due to the vitro makes that Lisa just mentioned.

Lisa Su: Yeah, I'll just add one point to what Lisa just said on the client business. We had really strong performance in Q1. Sequentially, client revenue is largely flat issue versus Q4. When you look behind it, our unit actually declined a double digit. So the revenue flat issue is largely driven by the ASP increase sequentially due to the richer mix that Lisa just mentioned. Thank you for all that color.

From a data center side, we see sequential growth on the CPU side, we see the GPU are right on track minus the China export controls and so for all those reasons, we're pleased with where the performance of the businesses right now yeah, I'll just add one point to what <unk> said on the client business, we had really strong.

Speaker Change: Yeah.

Speaker Change: Thank you for all that color the follow up I wanted to ask you about how ex China.

Speaker Change: <unk> instinct family performed in the quarter and how youre thinking about the back half of the year.

Speaker Change: I think you mentioned in the prepared remarks significant double digit year over year could.

Speaker Change: Performance in Q1 sequentially clay on the revenue largely flattish versus Q4, when you look behind that our units actually declined at double digit. So the revenue flattish is largely driven by the ASP increase sequentially due to the vitro makes that Lisa just mentioned.

Speaker Change: Could you maybe provide some color on how interesting did.

Speaker Change: In the first quarter, how youre thinking about the first half ahead of the 350 ramp.

Lisa Su: To follow up, I wanted to ask about how the China, X308 Instinct family performed in the quarter and how you're thinking about the back half of the year. I think you mentioned the prepared remarks, significant double digit year over year. Could you maybe provide some color on how Instinct did in the first quarter, how you're thinking about the first half ahead of the 350 ramp in next month? Thank you. Sure. So on the Instinct Ramp, I would say a Q1 performance of data center GPU was in line with maybe a little bit better than expected.

Speaker Change: Next month, thank you.

Speaker Change: Sure. So on the instinct ramp I would say Q1 performance of datacenter GPU was.

Speaker Change: Okay.

Speaker Change: Thank you for all that color.

Speaker Change: In line with maybe a little bit better than expected.

Speaker Change: A follow up I wanted to ask you about how the ex China ex.

Speaker Change: I think the key point that we've always said about the instinct ramp is are very excited about the <unk> 350 launch we're right on track for that launching mid year I would say customer interest has been very high so from a competitiveness standpoint, we feel really good about where its positioned.

Speaker Change: <unk> instinct family performed in the quarter and how you are thinking about the back half of the year.

Speaker Change: I think you mentioned in the prepared remarks significant double digit year over year could.

Speaker Change: Could you maybe provide some color on how instinctive.

Speaker Change: In the first quarter, how youre thinking about the first half ahead of the 350 ramp.

Speaker Change: Overall, I think one of the advantages that we have with the <unk> hundred 50, <unk> launch is that from a systems overall environment, it's actually a very similar to the mid three hundreds. So we believe it's going to ramp fast and we already have a couple of deals that have been announced including <unk>.

Lisa Su: I think the key point that we've always said about the Instinct Ramp is very excited about the MI350 launch. We're right on track for that launching midyear. I would say customer interest has been very high. So from a competitiveness standpoint, we feel really good about where it's positioned. Overall, I think one of the advantages that we have with the MI350 launch is that from a systems overall environment, it's actually very similar to the MI300. So we believe it's going to ramp fast. And we already have a couple of deals that have been announced, including a very important relationship with Oracle in terms of the MI350 series for a number of joint customers.

Speaker Change: Next month, thank you.

Speaker Change: Sure. So on the instinct ramp I would say Q1 performance of datacenter GPU was.

Speaker Change: In line with maybe a little bit better than expected.

Speaker Change: A very important relationship with Oracle in terms of the <unk> hundred 50 series for a number of joint customers. So we're excited about the overall AI business I think we continue to see strength. There I know there are some uncertainties as it relates to tariffs and other things, but this is one of those areas.

Speaker Change: We're from an infrastructure standpoint, there continues to be investments.

Speaker Change: Our infrastructure and so with that we would expect.

Lisa Su: So we're excited about the overall AI business. I think we continue to see strength there. I know there are some uncertainties as it relates to tariffs and other things. But this is one of those areas where from an infrastructure standpoint, there continues to be investment in AI infrastructure. And so with that, we would expect strong growth into the second half of the year.

Speaker Change: <unk> growth into the second half of the year.

Speaker Change: And the next question comes from the line of Timothy Arcuri with UBS. Please proceed with your question.

Speaker Change: A very important relationship with Oracle in terms of the <unk> 350 series for a number of joint customers. So we're excited about the overall AI business I think we continue to see strength. There I know there are some uncertainties as it relates to tariffs and other things, but this is one of those areas.

Thanks, a lot Lisa you said that.

Speaker Change: Data Center GPU grew significant double digit, but it was like $600 million last March. So I would think that I mean, I think a lot of us thought it was.

Speaker Change: Could it be like one seven to 175 so.

Timothy Arcuri: The next question comes from the line of Timothy Arcuri. Thanks a lot. Lisa, you said that data center GPU grew significant double digit, but it was like $600 million last March. So I would think that I mean, I think a lot of us thought it was, you know, going to be like 1.7 to 1.75. So is that the wrong way to sort of interpret that? Because it seems like it more than, you know, it went up triple digits, at least. So can you help us there? And also, I'm curious, the additional 800 million that sort of has to come out of from the ban, does that all come out in September?

Is that the wrong way to sort of interpret that because it seems like it more than.

Speaker Change: We're from an infrastructure standpoint, there continues to be investments.

It went up tripled.

Speaker Change: Our infrastructure and so with that we would expect.

Digitally so can you help us there and also I'm curious the additional E. One.

Speaker Change: <unk> growth into the second half of the year.

Speaker Change: 100 million that sort of has to come out of from the ban does that all come out in September or is there. Some remnants of that that have to come out in the fourth quarter as well.

Speaker Change: And the next question comes from the line of Timothy Arcuri with UBS. Please proceed with your question.

Timothy Arcuri: Thanks, a lot Lisa you said that.

Data Center GPU grew significant double digit, but it was like $600 million last March so I would think that I mean, I think a lot.

Speaker Change: Yeah. So.

Speaker Change: Again, what I would say is the datacenter GPU business did perform very well in the first quarter I think we have to go back and look at what you had for first quarter 2024.

Speaker Change: None of us thought it was.

Timothy Arcuri: We're going to be like 107 to 175 so.

Is that the wrong way to sort of interpret that because it seems like it more than.

But overall standpoint, it performed right, where we would expect.

Jean Hu: Or is there some remnants of that that have to come out in the fourth quarter as well? Yeah, so, you know, again, what I would say is the data center GPU business did perform very well in the first quarter. I think we have to go back and look at what you had for first quarter 2024. But, you know, overall standpoint, it performed right where we would expect. Relative to your conversation as to where does it come out, I would say the vast majority comes out in the September quarter. So, think about, you know, Gene mentioned one and a half billion.

Timothy Arcuri: It went up triple.

Timothy Arcuri: Digits at least so can you help us there and also I'm curious the additional eight.

Speaker Change: Relative to your conversation as to where does it come out I would say the vast majority comes out in the September quarter, So think about.

Timothy Arcuri: 100 million that sort of has to come out of from the ban does that all come out in September or is there. Some remnants of that could have to come out in the fourth quarter as well.

Speaker Change: Jim mentioned $1 5 billion, you would see the majority of it in Q.

Speaker Change: Q2, and Q3 with very little in Q4, So we had always expected that the fourth quarter because it would be very focused on the <unk> hundred 50 family would be.

Timothy Arcuri: Yeah. So.

Timothy Arcuri: Again, what I would say is the datacenter GPU business did perform very well in the first quarter I think we have to go back and look at what you had for first quarter 2024.

Speaker Change: Non China, our revenue and that's that's how it was planned.

Speaker Change: Yeah.

Timothy Arcuri: But overall standpoint, it performed right, where we would expect red.

Speaker Change: Got it and then.

Jean Hu: You would see the majority of it in Q2 and Q3 with very little in Q4. So, we had always expected that the fourth quarter, because it would be very focused on the MI350 family, would be, you know, non-China revenue, and that's how it was.

Speaker Change: And then.

Speaker Change: Just on the inventory it was up a lot is that just due to GTO is there something else happening there.

Timothy Arcuri: Relative to your conversation as to where does it come out I would say the vast majority comes out in the September quarter, So think about.

Speaker Change: Well on the inventory side, Oh, we built some inventory a prime related to support very strong client and the silver ramp and also the second half data center GPU ramp as you probably know the lead time is really long to deal with them for the Q3 Q4 ramp, but we really need to start.

Timothy Arcuri: Jim mentioned $1 5 billion, you would see the majority of it in Q.

Timothy Arcuri: Q2, and Q3 with very little in Q4, So we had always expected that the fourth quarter because it would be very focused on the <unk> hundred 50 family would be.

Jean Hu: Got it.

Jean Hu: And then, and then if, Jean, just on the inventory, it was up a lot. Is that just due to ZT? Or is there something else happening? On the inventory side, we built some inventory primarily to support very strong client and server ramp and also the second half data center GPU ramp. As you probably know, the lead time is really long to build for the Q3, Q4 ramp. We really need to start way first right now.

Timothy Arcuri: Non China, our revenue and that's that's how it was planned.

Speaker Change: The weakest right now that's why the inventory has increased.

Timothy Arcuri: Yeah.

Timothy Arcuri: Got it and then.

Okay.

Timothy Arcuri: And then.

Timothy Arcuri: Just on the inventory it was up a lot.

Speaker Change: And the next question comes from the line of Harlan sur with Jpmorgan. Please proceed with your question.

Timothy Arcuri: Due to <unk> or is there something else happening there. Thanks.

Harlan Sur: Hey, good afternoon, Thanks for taking my question.

Timothy Arcuri: Well on the inventory side, Oh, we feel to some inventory a prime in Asia to support very strong client and the silver ramp and also the second half data center GPU ramp as.

Harlan Sur: No it hasn't been a lot of focus on your upcoming 50 seriously. So but I 400 next year is where you can potentially close the competitive gap in a big way Youre, bringing frontier class model training performance GPU.

Harlan Sur: That's why the inventory has increased And the next question comes from the line of Harlan Sur with J.P. Good afternoon. Thanks for taking my question.

Timothy Arcuri: As you probably know the lead times really long to be with them for the Q3 Q4 ramp, but we really need to start the wafers right now that's why the inventory has increased.

Harlan Sur: Rock scale solution.

Harlan Sur: More and more of the challenges has been studying up these roc skill.

Harlan Sur: I know there's been a lot of focus in your upcoming MI350 series, Lisa, but MI400 next year is where you potentially close the competitive gap in a big way, right? You're bringing frontier class, model training, performance, GPU in a rack scale solution. More and more, the challenges has been standing up these rack scale platforms, power, cooling, footprint, networking, connectivity, telemetry, etc. Lots of well-telegraphed issues with standing up these rack scale architectures. So, as you've shared your MI400 rack scale solution architecture with customers, what is the AMD team doing to potentially address the ease of these deployments with the MI400, and just in general, what's been the overall feedback been like on MI400?

Harlan Sur: Our platform's power cooling footprint networking connectivity, telemetric et cetera, right lots of well telegraphed issues, what's done <unk> architecture. So.

Timothy Arcuri: Okay.

Timothy Arcuri: And the next question comes from the line of Harlan sur with Jpmorgan. Please proceed with your question.

Harlan Sur: I've shared your MRI 400 rock scale solution architecture with customers.

Harlan Sur: Hey, good afternoon, Thanks for taking my question.

Harlan Sur: It hasn't been a lot of focus on your upcoming almond trees 50 seriously so, but I 400 next year.

Harlan Sur: What is the endy team doing could potentially address the ease of use deployments with my 400 and just in general what's been the overall feedback been like on for.

Speaker Change: Should we close the competitive gap in a big way right Youre, bringing frontier class model training performance GPU.

Harlan Sur: 400.

Harlan Sur: Yeah, Harlan and thank you for the question I think look we're excited about the <unk> hundred 50 series launch that's coming up but we are extremely excited as well about the 400 series in the roadmap. There I think we've been very active with customers on our roadmap. As you know this is one of those areas, where you absolutely have to be.

Harlan Sur: Rock scale solution.

Harlan Sur: More and more of the challenges has been studying up these roc skill.

Harlan Sur: Our platform's power cooling footprint networking connectivity, telemetric et cetera, right lots of well telegraphed issues, what's done <unk> architecture. So.

Speaker Change: Sure My 400 rock scale solution architecture with customers.

Harlan Sur: Planning of many quarters in advance for that one of the primary reasons. We acquired <unk> systems was exactly to address this rack scale architecture, and so from that standpoint.

Lisa Su: Yeah, Harlan, thank you for the question. I think we're excited about the MI350 series launch that's coming up, but we are extremely excited as well about the MI400 series and the roadmap there. I think we've been very active with customers on our roadmap. As you know, this is one of those areas where you absolutely have to be planning many quarters in advance for that. One of the primary reasons we acquired ZT Systems was exactly to address this rack scale architecture, and so from that standpoint, the closing of the ZT acquisition has been very timely. What we're doing right now is, together with our ZT design team, as well as our customers' design teams and our own systems design capability, really actively planning what those rack scale systems are going to look like.

Speaker Change: What is the endy team doing could potentially address the use of these deployments with my 400 and just in general what's been the overall feedback been like on my 400.

Harlan Sur: The closing of the <unk> acquisition has been a very timely.

Harlan Sur: Yeah, Harlan and thank you for the question I think look we're excited about the <unk> hundred 50, <unk> launch that's coming up but we are extremely excited as well about the 400 series in the roadmap. There I think we've been very active with customers on our roadmap. As you know this is one of those areas, where you absolutely have to be.

Harlan Sur: What we're doing right now is together with our design.

Harlan Sur: The design team as well as our customers design teams and our own systems design capability.

Harlan Sur: Really actively planning what those rack scale systems are going to look like I would say the 400 series.

Harlan Sur: Planning of many quarters in advance for that one of the primary reasons. We acquired <unk> systems was exactly to address this rack scale architecture, and so from that standpoint.

Harlan Sur: Enthusiasm from customers is high.

Harlan Sur: And there's a lot of activities that are going on right now to ensure that we do in fact learn from some of the.

Harlan Sur: Let's call it some of the challenges that have occurred with some of the recent deployments.

Harlan Sur: The closing of the <unk> acquisition has been a very timely what we're doing right now is together with our <unk>.

Harlan Sur: Thanks for that and then.

Lisa Su: I would say the MI400 series enthusiasm from customers is high, and there's a lot of activities that are going on right now to ensure that we do, in fact, learn from some of the challenges that have occurred with some of the recent deployments. Thanks for that.

Harlan Sur: The continued to be impressive seven consecutive quarters of strong growth in your epic enterprise and on travel traction right.

Harlan Sur: Design team as well as our customers design teams and our own systems design capability really actively planning what those rack scale systems are going to look like I would say the 400 series.

Speaker Change: High 30, low forty's type share of the overall silver market in enterprise on Prem the share is probably in the sort of low 20% range, but significant share momentum can you just remind us like what is the AMD team done, but if you put in place sort of go to market wise to drive the strong tailwind here.

Enthusiasm from customers is high.

Harlan Sur: And there's a lot of activities that are going on right now to ensure that we do in fact learn from some of the.

Lisa Su: And then I continue to be impressed. I mean, seven consecutive quarters of strong year-over-year growth in your EPYC enterprise and on-prem traction, right? You have high 30s, low 40s type share of the overall server market in enterprise and on-prem. Your share is probably in the sort of low 20% range, but significant share momentum. Can you just remind us, like, what has the AMD team done? What have you put in place sort of go-to-market-wise to drive the strong tailwind here in what has been a very, very tough market segment to crack? I think there are a couple of things, Harlan.

Harlan Sur: Let's call it some of the challenges that have occurred with some of the recent deployments.

Harlan Sur: What has been a very very tough market segment to crop.

Harlan Sur: I think there are a couple of things Harlan first of all the strength of the product cannot be undersold alright.

Harlan Sur: Thanks for that and then.

Harlan Sur: By continuing to grow in cross selling seven consecutive quarters of strong growth in your epic enterprise and on travel traction right.

Harlan Sur: At this moment with fifth Gen epic the overall cloud adoption has been fantastic and then on the enterprise side, we've really broadened the product portfolio.

Harlan Sur: High 30, low forty's type share of the overall silver market in enterprise and on Prem the share is probably in the sort of low 20% range, but significant share momentum can you just remind us like what.

Harlan Sur: <unk> for <unk> that includes let's call it.

Harlan Sur: Low core count up through the highest core count and frequency ranges. So thats very helpful.

Lisa Su: First of all, you know, the strength of the product cannot be, you know, undersold, right? At this moment with 5th Gen EPYC, the overall, you know, cloud adoption has been fantastic. And then on the enterprise side, we've really broadened the product portfolio for Turin that includes, you know, let's call it, you know, low core count up through, you know, the highest core count and frequency ranges. So that's very helpful.

Harlan Sur: <unk> done what have you put in place sort of go to market wise to drive the strong tailwind here.

Harlan Sur: But probably the largest impact has been in go to market in the go to market space.

Harlan Sur: What has been a very very tough market segment to crop.

Harlan Sur: I think there are a couple of things Harlan first of all the strength of the product cannot be undersold alright.

Harlan Sur: We have added significant.

Harlan Sur: Head count and capability to address end users directly and with the use cases I think some of the things that we talked about across industries, we're actually learning from each deployment and replicating that across.

Harlan Sur: This moment with fifth Gen epic the overall cloud adoption has been fantastic and then on the enterprise side, we've really broadened the product portfolio for <unk> that includes let's call. It.

Lisa Su: But probably the largest impact has been in go-to-market. In the go-to-market space, we have added significant, you know, headcount and capability to address end users directly. And with the use cases, I think one of, you know, some of the things that we talked about across industries, we're actually learning from each deployment and replicating that across, you know, many of the industrial partners. So overall, I think it's been a strong effort on enterprise. And we're really still in the very early stages of that. I would say we're still quite underrepresented in enterprise, but with the platform coverage and the processor coverage, I think we feel good about the opportunity.

Harlan Sur: Any of the industrial a partner so overall I think it's been.

Harlan Sur: A strong effort on enterprise and we're really still in the very early stages of that I would say, we're still quite underrepresented.

Harlan Sur: Low core count up through the highest core count and frequency ranges. So that's very helpful.

Harlan Sur: Enterprise, but with the platform coverage and the processor coverage.

Harlan Sur: But probably the largest impact has been in go to market in the go to market space.

Harlan Sur: I think we are we feel good about the opportunities.

Harlan Sur: Have added significant.

Aaron Rakers: And the next question comes from the line of Aaron Rakers with Wells Fargo. Please proceed with your question.

Aaron Rakers: Yes, thanks for taking the question going back to kind of the data center business and particularly the GPU business.

Harlan Sur: Many of the industrial a partner so overall I think it's been.

Aaron Rakers: I think last quarter, you had alluded to the fact that you would expect that the data center revenue to be roughly flat in the first half of the year I guess, if we were to take out the $700 million.

Harlan Sur: A strong effort on enterprise and we're really still in the very early stages of that I would say, we're still quite underrepresented.

Aaron Rakers: And the next question comes from the line of Aaron Rakers with Wells Fargo, please proceed Aaron Rakers with Wells Fargo, please proceed Yeah, thanks for taking the question. Going back to kind of the data center business, and particularly the GPU business. You know, I think last quarter, you had alluded to the fact that you'd expected the data center revenue to be roughly flat in the first half of the year. I guess if we were to take out the 700 million impact from China, would the expectation still be flat for the year? Is that a fair assumption?

Aaron Rakers: Impact from China, what would the expectations still be flat for the year.

Speaker Change: Surprise, but with the platform coverage and the processor coverage.

Harlan Sur: We feel good about the opportunities.

Aaron Rakers: That a fair assumption.

Aaron Rakers: So Erin so you're right last time, when we need to mention the first half with a data center GPU.

Speaker Change: And the next question comes from the line of Aaron Rakers with Wells Fargo. Please proceed with your question.

Aaron Rakers: Yes, thanks for taking the question going back to kind of the data center business and particularly the GPU business.

Aaron Rakers: GPU, it's flattish year versus second half or the way to think about or what the visa mentioned the one 5 billion impact largely it will be in Q2, and Q3 and so when you take out the 700 million in Q2 and a majority.

Speaker Change: I think last quarter, you had alluded to the fact that you would expect with the data center revenue to be roughly flat in the first half of the year I guess, if we were to take out the $700 million.

Jean Hu: Yeah. So Aaron, so you're right. Last time we did mention the first half data center GPU, it's flat issue versus second half. The way to think about what Lisa mentioned is the 1.5 billion impact largely will be in Q2 and Q3. And so when you take out 700 million in Q2 and majority in Q3, that is what the impact in Q2 and Q3. But remember what Lisa mentioned is we do see second half weighted as we launch MI355, we will see significant ramp. Year over year, we see strong double-digit growth of our data center business.

Speaker Change: Impact from China, what would the expectations still be flat for the year.

Aaron Rakers: The majority in Q3.

Aaron Rakers: That is what the impact in Q2 and Q3, but.

Speaker Change: That a fair assumption.

Aaron Rakers: Remember, what Lisa mentioned D. So we do see second half weighted as we launch I might $3 55, but we will see significantly ramp year over year, we see strong double digit growth of our data center business and the GPU business also.

So Erin so you're right last time, when we need to mention the first half with a data center.

Speaker Change: It's flattish year versus second half or the way to think about it what the visa mentioned Asia. The one 5 billion impact largely it will be in Q2, and Q3 and so when you take out to 700 million in Q2 and a.

Speaker Change: Okay, and then as a quick follow up kind of thinking about the gross margin. Obviously this quarter's guidance reflective of the of the charge that you're taking.

Speaker Change: Should we assume that in the back half with MX Mrs attribute it to.

Speaker Change: Majority in Q3.

Speaker Change: Have you considered that you would see a return to that 54 plus percent gross margin in the second half of the year.

Speaker Change: That is what the impact in Q2 and Q3, but.

Lisa Su: Remember, what Lisa mentioned D. So we do see second half weighted as we launch <unk> 355, but we will see significantly ramp year over year, we see strong double digit growth of our data center business and the GPU business also.

Jean Hu: and the GPO Business Office. Okay.

Speaker Change: Definitely.

Jean Hu: And then as a quick follow-up, kind of thinking about the gross margin, obviously this quarter's guidance reflective of the charge that you're taking, should we assume that, you know, in the back half with mixed, you know, mixed attributes, you know, to be considered that you would see a return to that 54 plus percent gross margin in the second half of the year? Is that a fair assessment? Yeah, yeah, Aaron, thank you for the question. Yeah, there are a few takes on the gross margin. If you think about the Q2, excluding 800 million charge related to the MI308, our gross margin actually is around 54%.

Speaker Change: Yeah, yeah. Thank.

Speaker Change: Thank you for the question, Yes, there are few puts and takes on the gross margin. If you think about the Q2, excluding 800 median charge related to the <unk> our gross margin actually is.

Speaker Change: Okay, and then as a quick follow up kind of thinking about the gross margin. Obviously this quarter's guidance reflective of the of the charge that you're taking.

Speaker Change: <unk>, 54%, so at a company level right.

Speaker Change: The mix is less favorable because the play on the in the gaming business needs to grow in sequentially, but we do have a few drivers to drive the gross margin op furnished it you know.

Speaker Change: Should we assume that in the back half with mixed this attribute it to.

Speaker Change: Be considered that you would see a return to that 54% gross margin in the second half of the year is that a fair assessment.

Speaker Change: As I mentioned earlier, if you look at that our client business. The gross margin has been improving because the richer mix of our latest generation product portfolio that really helps and also secondly within data center when we expand the enterprise market this year.

Speaker Change: Yeah, yeah. Thank.

Speaker Change: Thank you for the question, Yes, there are few puts and takes on the gross margin. If you think about the Q2, excluding 800 million charge related to the <unk>, our gross margin actually is.

Jean Hu: So at a company level, right, the mix is less favorable, because the client and the gaming business is growing sequentially. But we do have a few drivers to drive the gross margin up. First, you know, as I mentioned earlier, if you look at our client business, the gross margin has been improving because the richer mix of our latest generation product portfolio, that really helps. And also, secondly, within data center, when we expand the enterprise market share, we do see gross margin improvement. Of course, in addition, MI308 data center GPU gross margin is on the low end of our data center GPU margin.

Speaker Change: <unk>, 54%, so at a company level right.

Speaker Change: Are we do see gross margin improvement.

Speaker Change: Of course in addition.

Speaker Change: <unk>, three or <unk> to data center GPU gross margin.

Speaker Change: On the low end of our datacenter GPU margin. So that also helps us overall when.

Speaker Change: As I mentioned earlier, if you look at that our client business.

Speaker Change: When we think about the second half what we actually think at the gross margin will improve with slightly because the data center continue to be very strong growth driver number one growth driver second half versus the first half, which will be partially offset by continued strength on the clay on the entertainment.

Speaker Change: Gross margin has been improving because the return mix of our latest generation product portfolio that really helps and also secondly within data center when we expand the enterprise market share, we do see gross margin improvement.

Jean Hu: So that also helps us. Overall, when we think about the second half, we actually think the gross margin will improve slightly because data center continues to be very strong growth driver, number one growth driver. Second half versus the first half, which will be partially offset by continued strength on the client and the gaming side. Hope that answers your question.

Speaker Change: Of course in addition.

Speaker Change: Site hope that answer your question.

Speaker Change: Three one <unk> datacenter GPU gross margin.

Thomas O'malley: And the next question comes from the line of Thomas O'malley with Barclays. Please proceed with your question.

Speaker Change: On the low end of our datacenter GPU margin. So that also helps us overall one.

Thomas O'malley: Hey, thanks.

Thomas O'malley: Thanks for taking my question I really appreciate it Jim Thanks that helpful to answer there I just wanted to understand your view on system based architectures and whether you feel like you have what you need right. Now obviously you really wonder are those coming out you can use third party providers to kind of do the interconnect.

Speaker Change: When we think about the second half will we actually think at the gross margin will improve with slightly because the data center continue to be very strong growth driver number one growth driver second half versus the first half, which will be partially offset by continued strength on the clay on the entertainment.

Thomas O'malley: and the next question comes from the line of Thomas O'Malley. Please proceed with Hey, Lisa and others, thanks for taking my question. I really appreciate it. And Jean, thanks for that helpful answer there. I just wanted to understand your view on system based architectures and whether you feel like you have what you need right now. Obviously, UA Link 1.0 is coming out, you can use third party providers to kind of do the interconnect. ZT System does do a lot for you in terms of the system architecture. But from the interconnect side, do you think that you need more?

Thomas O'malley: T system doesn't do a lot for you in terms of the system architecture, but from the interconnect side do you think that you need more or is that something that youre going to do internally look extra really just wanted to understand where you think the portfolio is today and whether you can address just to boost architectures with what you have today.

Speaker Change: Site hope that answer your question.

Thomas O'malley: And the next question comes from the line of Thomas O'malley with Barclays. Please proceed with your question.

Sure Tom.

Thomas O'malley: Hey, Thanks for taking my question I really appreciate it Jim Thanks for that helpful to answer there I just wanted to understand your view on system based architectures and whether you feel like you have what you need right. Now obviously you really wonder are those coming out you can use third party providers to kind of do the interconnect.

Thomas O'malley: Absolutely I think we feel like we have all the pieces required as well as deep partnerships in the ecosystem.

Thomas O'malley: Or at a system level optimization between CPU GPU.

Lisa Su: Is that something that you're going to do internally, look externally, just want to understand where you think the portfolio is today and whether you can address system based architectures with what you have today?

Thomas O'malley: Networking capability, a rack scale architecture I think all of those pieces are things that we are investing in and we're also partnering with others in the industry who are offering.

Thomas O'malley: T system doesn't do a lot for you in terms of the system architecture. We're from the interconnect side do you think that you need more or is that something that youre going to do internally look extra early just wanted to understand where you think the portfolio is today and whether you can address just to boost architectures with what you have today.

Lisa Su: Sure, Tom. Absolutely. I think we feel like we have all the pieces required, as well as, you know, deep partnerships in the ecosystem. And, you know, I consider it a system level optimization between CPU, GPU, you know, networking capability, rack scale architecture, I think all of those pieces are things that we are investing in. And we're also partnering with others in the industry who are offering these, these capabilities. I think when we look at the architectures that our customers want, our customers are really asking for, you know, one, that we have a reference architecture that works, but also that we work with them as they want to interchange various pieces, particularly on the networking side.

Thomas O'malley: These capabilities I think when we look at the architectures that our customers want our customers are really asking for one that we have a reference architecture that works, but also that we work with them as they want to entertain various pieces, particularly on the networking side I think there are a couple of different <unk> salute.

Speaker Change: Sure Tom.

Speaker Change: Absolutely I think we feel like we have all the pieces required as well as deep partnerships in the ecosystem.

Speaker Change: Consider it a system level optimization between CPU GPU.

Thomas O'malley: <unk> out there and we are very much focused on ensuring that we enter operate.

Speaker Change: Networking capability, a rack scale architecture I think all of those pieces are things that we are investing in and we're also partnering with others in the industry who are offering.

Thomas O'malley: Across the spectrum.

Speaker Change: Okay helpful. And then if we look at the full year I mean, we will get the units with the filing but it looks like theres some material share gains here in the first quarter. When you look at the full year just to level set us on share gains versus market growth could you maybe talk about what you see the client business growing as a base level and then just obviously it's difficult to predict.

Speaker Change: These these capabilities I think when we look at the architectures that our customers want our customers are really asking for one that we have a reference architecture that works, but also that we work with them as they want to entertain various pieces, particularly on the networking side I think there are a couple of different <unk>.

Lisa Su: I think there are a couple of different solutions out there. And, you know, we are very much focused on ensuring that we interoperate, you know, across the spectrum.

Speaker Change: Sure we'll go but just any comments on what youre seeing thus far is a couple of points of share as kind of what youre seeing in the first quarter as well, we'll get a little more later, but mostly just on the market grow for for 2025. Thank you.

Thomas O'malley: helpful and then if we look at the full year i mean we'll get the units with the filing but it looks like there's some material share gains here in the first quarter when you look at the full year just to level set us on share gains versus market growth could you maybe talk about what you see the client business growing as a base level uh and then just obviously it's difficult to kind of predict where share will go but just any comments on what you're seeing thus far is a couple points of shares kind of what you're seeing in the first quarter as well we'll get a little more later but mostly just on the market growth for uh for 2025 thank you Sure, Tom.

Speaker Change: <unk> is out there and we are very much focused on ensuring that we enter operate.

Speaker Change: Sure Tom So if you're asking about sharing the client business I think that that was the conversation look we are very pleased with our client business performance over the last couple of quarters. I think we are seeing unit growth, particularly in desktop, but where we're seeing probably the most growth is overall revenue share and so it's we're gaining share.

Speaker Change: Across the spectrum.

Speaker Change: That's helpful. And then if we look at the full year I mean, we will get the units with the filing but it looks like theres some material share gains here in the first quarter. When you look at the full year just to level set us on share gains versus market growth could you maybe talk about what you see the client business growing as a base level and then just obviously, it's difficult to kind of predict.

Speaker Change: In the right places, which is in sort of high end.

Lisa Su: So if you're asking about sharing the client business, I think that was the conversation. Look, we are very pleased with our client business performance over the last couple of quarters. I think we are seeing unit growth, particularly in desktop, but where we're seeing probably the most growth is overall revenue share. And so it's, you know, we're gaining share in the right places, which is in, you know, sort of high end, you know, notebook and commercial as well as in desktop overall. So, for that standpoint, that's where we think we're going. As we, you know, go through the year, I know there's a good amount of conversation about what happens in the macro and what happens with tariffs and does that, you know, change things going forward.

Speaker Change: Notebook and commercial as well as in desktop overall, so from that standpoint, that's where we think we're going after.

Speaker Change: We go through the year I know, there's a good amount of conversation about what happens in the macro and what happens with tariffs and does that.

Speaker Change: Change things going forward, we're spending quite a bit of time, ensuring that we are.

Speaker Change: Aligning with our customers looking at inventory levels looking at sort of consumption and overall sell through and we believe that we have a a good overall inventory position and there is not let's call. It a tremendous amount of pull ins or other things that are coming into play and we will continue to be very agile and how.

Speaker Change: That growth, particularly in desktop, but where we're seeing a pause.

Speaker Change: The most growth is overall revenue share and so it's we're gaining share in the right places, which is in sort of high end.

Speaker Change: Notebook and commercial as well as in desktop overall, so from that standpoint, that's where we think we are going.

Lisa Su: We are spending quite a bit of time ensuring that we are aligning with our customers, looking at inventory levels, looking at, you know, sort of consumption and overall sell through. And we believe that we have a good overall inventory position and there is not let's call it a tremendous amount of, you know, pull-ins or other things that are coming into play. And, you know, we will continue to be very agile in how we, you know, look at that going forward.

Speaker Change: We look at that going forward.

Speaker Change: As we go through the year I know, there's a good amount of conversation about what happens in the macro and what happens with tariffs and does that.

Speaker Change: Yeah.

Speaker Change: And the next question comes from the line of Vivek Arya with Bank of America Securities. Please proceed with your question.

Speaker Change: Change things going forward, we are spending quite a bit of time, ensuring that we are.

Vivek Arya: Thank you I had two questions as well.

Vivek Arya: First one just near term lease how did your GPU sales grew sequentially in Q1, how much was <unk>.

Vivek Arya: In that number and if you look at 2025 overall doing gpus can still grow despite.

Vivek Arya: And the next question comes from the line of Vivek Arya with Bank of America Securities.

Vivek Arya: Please proceed with your question. Thank you. I had two questions as well.

Vivek Arya: China had been but you mentioned relative to the 5 billion plus unit last year.

Speaker Change: We look at that going forward.

Lisa Su: On the first one, just near-term, Lisa, did your GPU sales grow sequentially in Q1? How much was MI308 in that number? And if you look at 2025 overall, do you think GPUs can still grow despite this China headwind that you mentioned relative to the $5 billion-plus you Yeah, sure, Vivek.

Vivek Arya: Yeah sure Vivek. So let me answer the second question first.

Speaker Change: Right.

Speaker Change: And the next question comes from the line of Vivek Arya with Bank of America Securities. Please proceed with your question.

Vivek Arya: Absolutely believe the datacenter GPU will grow and we think it will grow strong double digits.

Vivek Arya: We had a plan that was second half weighted and it still is.

Speaker Change: Thank you I had two questions as well.

Speaker Change: First one just near term lease how did your GPU sales grew sequentially in Q1, how much was <unk> and.

Vivek Arya: Relative to the <unk> situation. It is certainly a headwind, but one which we think is well contained.

Lisa Su: So let me answer the second question first. We absolutely believe the data center GPU will grow and we think it'll grow strong double digits. You know, we had a plan that was second half weighted, and it still is, you know, relative to the MI308 situation, you know, it's certainly a headwind, but one which, you know, we think is, you know, well contained, given everything else that we have going on. And relative to the Q1 performance of data center GPU, it was, you know, down very modestly from Q4, which is what we expected. You know, we did see, you know, good overall demand actually in the first quarter driven by MI325.

Speaker Change: In that number and if you look at 2025 overall doing gpus can still grow despite.

Vivek Arya: Given everything else that we have going on and relative to the Q1 performance of datacenter GPU. It was down very modestly from Q4, which is what we expected.

Speaker Change: China had been but you mentioned relative to the 5 billion plus you did last year.

Vivek Arya: We did see good overall demand actually in the first quarter driven by <unk> hundred 25, So we had a significant adoption by a large.

Yeah sure Vivek. So let me answer the second question first.

Speaker Change: Absolutely believe the datacenter GPU will grow and we think it'll grow strong double digits.

Speaker Change: We had a plan that was second half weighted and it still is.

Vivek Arya: Additional model company, which was very positive there and as we go forward.

Speaker Change: Relative to the <unk> situation, it's certainly a headwind, but one which we think is well contained.

Vivek Arya: We expect that we will continue to brought in both customers as well as workloads within our current customers for the.

Speaker Change: Given everything else that we have going on and relative to the Q1 performance of datacenter GPU. It was down very modestly from Q4, which is what we expected.

Vivek Arya: The instinct portfolio and the fact that in Q1 and my 325 three.

Lisa Su: So we had a, you know, significant adoption by a, you know, large foundational model company, which was very positive there. And as we go forward, you know, we expect that we will continue to broaden both customers as well as workloads within our current customers for the, the Instinct portfolio. And Vivek, in Q1, MI325 and MI300 are majority of our revenue.

Vivek Arya: 300, a majority of our revenue.

Speaker Change: We did see good overall demand actually in the first quarter driven by <unk> hundred 25, So we had a significant adoption by a large town.

Vivek Arya: Alright, and then longer term lease on it you know in the past you had described I believe almost a $500 billion or so.

Vivek Arya: <unk> market for AI accelerators, how much of that.

Speaker Change: Foundational model company, which was very positive there and as we go forward.

Vivek Arya: Roughly as China goes back now seems to be somewhat restricted for U S companies and then also kind of related to that.

Speaker Change: We expect that we will continue to brought in both customers as well as workloads within our current customers.

Lisa Su: And then, longer term, Lisa, you know, in the past, you described, I believe, almost a $500 billion or so addressable market for AI accelerators. How much of that, you know, roughly is China? Because that now seems to be somewhat restricted for U.S. companies.

Speaker Change:

Vivek Arya: How should we think about these diffusion rules, but I think there is an implementation date that is coming up on may 15th I'm curious what you have heard so just sort of the implication of China restrictions on these diffusion rules on thinking about the addressable opportunity for you longer term. Thank you.

Speaker Change: The instinct portfolio and the fact that in Q1, and my 325 and 300, a majority of our revenue.

Speaker Change: Great and then longer term lease on it you know in the past you described I believe almost a 500 billion so addressable market.

Lisa Su: And then also kind of related to that, how should we think about these AI diffusion rules that I think there is an implementation date that is coming up on May 15th? I'm curious what you have heard. So just sort of the implication of, you know, China restrictions and these AI diffusion rules on thinking about the addressable opportunity for you longer. Yeah, Vivek, I think that's a good question. I think overall, it is a very dynamic market. So you'll appreciate that. On the China export controls, I think we always expected that there would be some amount of what's called limitation on sort of leading edge GPUs going into China.

Speaker Change: Yeah, Vivek I think it's a good question.

Speaker Change: For AI accelerators, how much of that.

Speaker Change: I think overall it is a very dynamic dynamic market. So you will appreciate that.

Speaker Change: Roughly as China goes back now seems to be somewhat restricted for U S companies and then also kind of related to that how.

Speaker Change: The China export controls I think we always expected that there would be some amount.

Speaker Change: Let's call it limitation on sort of leading edge gpus going into China. So that was factored in to our Tam expectation when we talked about 500 billion. So I don't think that.

Speaker Change: Should we think about these diffusion rules, but I think there is an implementation date that is coming up on may 15th I'm curious what you have heard so just sort of the implication of China restrictions on these diffusion rules on thinking about the addressable opportunity for you longer term. Thank you.

Speaker Change: <unk> changes the Tam, but what I will say is on the AI diffusion side, what were very actively working with the government as they're thinking through these rules and it's a very fine balance that we have to have at the end of the day.

Speaker Change: Yeah, Vivek I think it's a good question I think overall it is a very dynamic dynamic market. So youll appreciate that on the <unk>.

Lisa Su: So that was factored in to our TAM expectation when we talked about 500 billion. So I don't think that dramatically changes the TAM. But what I will say is on the AI diffusion side, you know, what we're very actively working with the government as they're thinking through these rules, and it's a very, you know, fine balance that we have to have. At the end of the day, when we look at, you know, sort of the, you know, US, you know, AI, you know, companies, you know, we have leading edge technology, we want to ensure that the rest of the world can really use us as the primary platform.

Speaker Change: When we look at sort of the.

Speaker Change: China export controls I think we always expected that there would be some amount.

Speaker Change: Yes.

Speaker Change: Companies we.

Speaker Change: Have leading edge technology, we want to ensure that the.

Speaker Change: Let's call it limitation on sort of leading edge gpus going into China. So that was factored in to our Tam expectation when we talked about 500 billion.

The rest of the world can really use us as the primary platform. So I think it'll be important to work through the AI diffusion rules and all of that as we think about longer term Tam and we're certainly spending quite a bit of efforts trying to ensure that it's well understood. The importance of the overall ecosystem and having the rest of the world really adopt.

Speaker Change: That dramatically changes the Tam, but what I will say is on the AI diffusion side.

Speaker Change: We're very actively working with the government as they're thinking through these rules and it's a very fine balance that we have to have at the end of the day when.

Speaker Change: The the U S ecosystem, given our strength and leadership overall.

Lisa Su: So I think it'll be important to work through, you know, the AI diffusion rules and all of that as we think about longer term TAM. And, you know, we're certainly spending quite a bit of efforts trying to ensure that it's well understood the importance of the overall ecosystem and having the rest of the world really adopt the, you know, the US ecosystem given our strength and leadership overall.

Speaker Change: When we look at sort of the.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: AI companies.

Speaker Change: And the next question comes from the line of C. J Muse with Cantor Fitzgerald. Please proceed with your question yes.

Speaker Change: Leading edge technology, we want to ensure that the.

Speaker Change: The rest of the world can really use us as the primary platform. So I think it will be important to work through the AI diffusion rules and all of that as we think about longer term Tam and we're certainly spending quite a bit of efforts trying to ensure that it's well understood. The importance of the overall ecosystem and having the rest of the world really adopt.

Speaker Change: Yes, good afternoon, and thank you for taking the question I wanted to revisit your assumptions around client.

Speaker Change: If you were to just flatline. The Q1 actual you would grow the business above 30%.

Speaker Change: You're obviously very bullish on taking share you've talked about.

C.J. Mews: And the next question comes from the line of C.J. Mews with Kanner Fitzgerald. Please proceed with Yeah, good afternoon. Thank you for taking the question. I wanted to revisit your assumptions around client. If you were to just flatline the Q1 actual, you would grow the business about 30%. You're obviously very bullish on taking share. You talked about huge tailwinds from ASPs.

Speaker Change: Huge tailwind from Asp's booked.

Speaker Change: The.

Speaker Change: But curious when you put it all together how should we think about traditional seasonality into the second half, particularly with the potential of some points here in the first half.

Speaker Change: The U S ecosystem, given our strength and leadership overall.

Speaker Change: Okay.

Speaker Change: And the next question comes from the line of C. J Muse with Cantor Fitzgerald. Please proceed with your question.

Speaker Change: Sure C J.

Speaker Change: It's a fair question.

Speaker Change: Yes, good afternoon, and thank you for taking the question I wanted to revisit your assumptions around client.

Speaker Change: Look we we want to be very clear that our client business performance is primarily driven by the strength of the product portfolio and it's driven by some of the desktop channel.

Lisa Su: But curious, when you put it all together, how should we think about traditional seasonality into the second half, particularly with, you know, the potential of some pull-ins here in the first half? Sure, CJ. It's a fair question. Look, we want to be very clear that our client business performance is primarily driven by the strength of the product portfolio. And it's driven by some of the desktop channel products that traditionally are not so well tracked, if you look at sort of the IDCs of the world. We are planning for, let's call it a second half sub seasonal, given that we're off to such a strong start in the first half of the year.

Speaker Change: If you were to just flatline. The Q1 actual you would grow the business above 30%.

Speaker Change: You're obviously very bullish on taking share you've talked about.

Speaker Change: Products that traditionally are not so well tracked if you look at sort of the.

Speaker Change: Huge tailwind from Asp's booked.

Speaker Change: The <unk> of the World, we are planning for let's call. It a second half sub seasonal given that we're off to such a strong start in the first half of the year and that is what we're putting into our sort of internal planning number. So you wouldn't see necessarily typical seasonality since the first half is better than seasonal that being the case I think we feel strong.

Speaker Change: But curious when you put it all together how should we think about traditional seasonality into the second half, particularly with the potential of some pull ins here in the first half.

Sure C J.

It's a fair question.

Speaker Change: Look we we want to be very clear that our client business performance is primarily driven by the strength of the product portfolio and it's driven by some of the desktop channel.

Speaker Change: Ali that from a consumption basis standpoint, we can see the data so the when we look at the Q1 performance. It was a very very strong Q1 in terms of sellout in consumption for our desktop business and as we start Q2, we're now four weeks into it we see those patterns continuing so we're in an upgrade cycle.

Speaker Change: Products that traditionally are not so well tracked if you look at sort of the the <unk> of the world.

Lisa Su: And that is what we're putting into our sort of internal planning numbers. So, you know, you wouldn't see necessarily typical seasonality since the first half is better than seasonal. That being the case, I think we feel strongly that from a consumption basis standpoint, we can see the data. So, when we look at the Q1 performance, it was a very, very strong Q1 in terms of sellout and consumption for our desktop business. And as we start Q2, we're now, you know, four weeks into it, we see those patterns continuing. So, we're in an upgrade cycle right now.

Speaker Change: We are planning for let's call. It a second half sub seasonal given that we're off to such a strong start in the first half of the year and that is what we're putting into our sort of internal planning numbers. So you wouldn't see necessarily typical seasonality since the first half is better than seasonal that being the case I think we feel strongly that from a consumption basis standpoint.

Speaker Change: Right now gaming Cpus are usually.

Speaker Change: <unk> when their gaming Gpus that come out in new cycles, and I think we're benefiting from that on both the CPU and the GPU side.

Speaker Change: Which is great I mean, we're very happy with that and we're ramping up production to ensure that we keep the channel.

Speaker Change: We can see the data so the when we look at the Q1 performance. It was a very very strong Q1 in terms of sellout in consumption for our desktop business and as we start Q2, we're now four weeks into it we see those patterns continuing.

Speaker Change: Very helpful. And then I just will continue next year can you talk about 400 series in rack level solution go to market strategy, you talked about kind of trying to obtain.

Lisa Su: You know, gaming CPUs are usually purchased when there are gaming GPUs that come out in new cycles. And I think we're benefiting from that on both the CPU and the GPU side, which is great. I mean, we're very happy with that. And we're ramping up production to ensure that, you know, we keep the channel full.

Speaker Change: Obtain partners.

Speaker Change: Or a certain number that you're targeting and then how are you thinking about.

Speaker Change: So we're in an upgrade cycle right now gaming Gpus are usually purchased when Theyre gaming Gpus that come out in new cycles, and I think we're benefiting from that on both the CPU and the GPU side.

Speaker Change: Kind of getting through some of the learning curve challenges of getting the rack scale working with your OEM partners such that you can deliver that ramped in 2026. Thanks so much.

Lisa Su: Very helpful.

Lisa Su: And then I guess looking to next year, can you talk about 400 series and rack level solution, go to market strategy, you talked about kind of trying to obtain partners, you know, is there a certain number that you're targeting? And then how are you thinking about, you know, kind of getting through some of the learning curve challenges of, of getting the rack skill, working with your OEM partners such that, you know, you can deliver that ramp in 2026. Thanks so much. Sure, CJ. So I think the right answer is we're getting a very early start.

Speaker Change: Which is great I mean, we're very happy with that and we're ramping up production to ensure that we keep the channel.

Speaker Change: Sure C. J. So I think the right answer is we're getting a very early start and that's what we have to do is so that we maximize the the overall learning cycle.

Speaker Change: Very helpful. And then I just will continue next year can you talk about 400 series in rack level solution go to market strategy, you talked about kind of trying to obtain partners.

Speaker Change: As required for rack scale solutions.

Speaker Change: We're working very closely with a number of our Hyperscale partners today to define those solutions and make sure that we're thinking about all of the various.

Speaker Change: There are certain number that you're targeting and then how are you thinking about.

Speaker Change: Kind of getting through some of the learning curve challenges of getting the rack scale working with your OEM partners such that you can deliver that ramp in 2026. Thanks so much.

Speaker Change: Areas that that could require work and we're also working with our OEM partners, who also have let's call. It learned quite a bit over the past couple of months and quarters as other rock scale solutions have been coming online. So I think we're doing everything to let's call. It move ahead.

Lisa Su: And that's what we have to do is so that we maximize the overall learning cycle that is required for RackScale solutions. We are working very closely with a number of our HyperScale partners today to define those solutions and make sure that we're thinking about all of the various areas that could require work. And we're also working with our OEM partners who also have let's call it learned quite a bit over the past couple of months and quarters as other RackScale solutions have been coming online. So I think we're doing everything to let's call it move ahead the learning cycle.

Speaker Change: Sure C. J. So I think the right answer is we're getting a very early start and that's what we have to do is so that we maximize the the overall learning cycle.

Speaker Change: The learning cycle and again, we have.

Speaker Change: Is required for <unk> solutions.

Speaker Change: The benefit of the <unk> hundred 50 series being a relatively let's call it not.

Speaker Change: We're working very closely with a number of our Hyperscale partners today to define those solutions and make sure that we're thinking about all of the various.

Speaker Change: Not large lift and so the focus on the rack scale stuff is on 400.

Speaker Change: And the next question comes from the line of Stacy <unk> with Bernstein Research. Please proceed with your question.

Lisa Su: And again, we have the benefit of the MI350 series being a relatively let's call it not large lift. And so the focus on the RackScale stuff is on MI400.

Hi, guys and thanks for taking my questions.

For the first one the China data center GPU headwinds in Q2, and Q3 do you think that GPU business actually grows year over year in Q2 and Q3 on understanding your comments for the full year on it but.

Stacy Rasgon: www.microsoft.com.com And the next question comes from the line of Stacey Rasgen with. Proceed with your question. Hi guys, thanks for taking my questions.

Speaker Change: The learning cycle and again, we have.

Speaker Change: The benefit of the <unk> hundred 50 series being a relatively let's call it not.

Speaker Change: Do you think given those headwinds in Q2 and Q3, it can actually grow year over year.

Speaker Change: Not large lift and so the focus on the rack scale stuff is on my 400.

Stacy Rasgon: For the first one, given the China data center GPU headwinds in Q2 and Q3, do you think that GPU business actually grows year over year in Q2 and Q3? I'm understanding your comments for the full year on Do you think given those headwinds in Q2 and Q3, it can actually grow year over year? For my second question, I wonder if they asked about kind of the trends in Q1, so you said it was data center GPU was down, I guess, modestly. Q1 as expected. But again, if I go back to your sort of double-digit your comments.

Speaker Change: I think your let's see.

Speaker Change: And the next question comes from the line of Stacy <unk> with Bernstein Research. Please proceed with your question.

Speaker Change: Stacy the best way to answer that question is in Q2, it's not going to grow year over year, just given what we've said about the $700 million coming out of Q2.

Stacy: Hi, guys and thanks for taking my questions.

Speaker Change: For the first one.

Speaker Change: The China data center GPU headwinds in Q2, and Q3 do you think that GPU business actually grows year over year in Q2 and Q3 on understanding your comments for the full year on it but.

Speaker Change: And how we had previously talked about.

Speaker Change: Evolution, but we do believe that we will grow year over year or going forward in Q3, and Q4 certainly for us to do the full year.

Speaker Change: With strong double digit growth.

Speaker Change: Do you think given those headwinds in Q2 and Q3, it can actually grow year over year.

Speaker Change: Okay. So you do think it can grow year over year okay.

Speaker Change: My second question I wanted to ask about claims in Q1. So you said it was data center GPU was down modestly.

Speaker Change: I think your let's see.

Speaker Change: The best way to answer that question is in Q2, it's not going to grow year over year, just given what we've said about the $700 million coming out of Q2.

Speaker Change: In Q1 as expected, but again, if I go back to your sort of double digits.

Speaker Change: Year over year comments, I mean, it couldn't have been any more.

Speaker Change: And how we had previously talked about.

Speaker Change: Like $1 4 billion in Q1 for keeping it feels like it's less than that.

Speaker Change: Evolution, but we do believe that we will grow year over year or going forward in Q3, and Q4 certainly for us to do the full year.

Speaker Change: Which means it would have been down at least 20% sequentially, maybe more which also implies that the server Cpus in Q1 were up sequentially, which was also well above seasonal assume similar to clients I guess, what I'm asking is are those trends correct in my modeling that correct.

Speaker Change: With strong double digit growth.

Speaker Change: Okay. So you do think it can grow year over year okay.

Speaker Change: For my second question.

Jean Hu: I mean, it couldn't have been any more than like $1.4 billion in Q1 for these students, and it feels like it's less than that. which means it would have been down at least 20% sequentially, maybe more, which also implies that the server CPUs in Q1 were up sequentially. which is also well above seasonal, similar to clients. I guess what I'm asking is, are those trends correct? Am I modeling that correct? And I guess, what are the implications in that case of server CPUs actually up well above seasonal? in Q1.

Speaker Change: I wanted to ask about kind of the trends in Q1. So you said it was datacenter GPU was down modestly in.

Speaker Change: I guess what are the implications in that case of server Cpus actually up well above seasonal in Q1, given this environment.

Speaker Change: In Q1 as expected, but again, if I go back to your sort of double digits.

Speaker Change: No I think Stacy this is gene I think when you think about the Q1 data center performance.

Speaker Change: Year over year comments, I mean, it couldn't have been any more.

Speaker Change: Like $1 4 billion in Q1 for <unk> and it feels like it's less than that.

Speaker Change: It's declined to 5% so it's a little bit better from a server perspective, because it hasn't declined sequentially.

Speaker Change: Same thing like datacenter GPU like Lisa mentioned earlier.

Jean Hu: No, I think, Stacy, this is Jean. I think when you think about the Q1 data center performance, it's declined 5%. So it's a little bit better from a server perspective, because it is declined sequentially. Same thing like this on the GPU, like Lisa mentioned earlier, it did decline. So I think that is the overall data center performance. I don't know about your model, but that is how we really look at the numbers, how we think about it.

The decline so I think that is the the overall data center performance.

Speaker Change: I guess what are the implications in that case of server Cpus actually up well above seasonal in Q1, given this environment.

Speaker Change: I think.

Speaker Change: I don't know about your model, but that's how we really look at the numbers, how we think about it.

Speaker Change: No I think Stacy this is gene I think when you think about the Q1 data center performance.

Speaker Change: And the next question comes from the line of Ross Seymore with Deutsche Bank. Please proceed with your question.

It's declined to 5% so it's a little bit better from a server perspective, because it hasn't declined sequentially.

Ross Seymore: Hey, guys. Thanks for let me ask a couple of questions are going to go to the embedded space I know, it's not the biggest one but everything else has been addressed pretty detailed you mentioned the second half getting up to year over year growth. It seems like that requires some significant double digit growth sequentially in both quarters just to get the full half there what gives you the confidence in that sort of ramp.

Speaker Change: Same thing like datacenter GPU like Lisa mentioned earlier.

Speaker Change: The decline so I think that is the the overall data center performance.

Ross Seymour: And the next question comes from the line of Ross Seymour with Deutsche Bank, please proceed with Hey guys, thanks for letting me ask a couple questions. Gonna go to the embedded space. I know it's not the biggest one, but everything else has been addressed. You mentioned the second half getting up to year-over-year growth, it seems like that requires some significant double-digit growth sequentially in both quarters just to get the full half there. What gives you the confidence in that?

Speaker Change: I think.

Speaker Change: I don't know about your model, but a bathing suit how we really look at the numbers, how we think about it.

Speaker Change: Yeah.

Ross Seymore: Ross and thank you for the question on the impact of the site, we started to see a.

Ross Seymore: Gradual recovery I think they are signs, especially the order pattern that book to bill ratios that we see improving AR in the like.

Speaker Change: And the next question comes from the line of Ross Seymore with Deutsche Bank. Please proceed with your question.

Speaker Change: Hey, guys. Thanks for let me ask a couple of questions are going to go to the embedded space I know, it's not the biggest one but everything else has been addressed pretty detailed you mentioned the second half getting up to year over year growth. It seems like that requires some significant double digit growth sequentially in both quarters just to get the full half there what gives you the confidence in that sort of ramp.

Speaker Change: Aerospace and defense and to also test and measurement side that we see a very visible improvement industrial side of the implementation license. So their inventory still are among different customers, but overall the trend the demand pattern in pool.

Jean Hu: Yeah, Ross, thank you for the question. On the embedded side, we started to see a gradual recovery. I think there are signs, especially the order pattern, the book-to-field ratios, we see improving. In the aerospace defense and also test and measurement side, we see a very visible improvement. Industrial side, the improvement is less so. There are inventory still among different customers. But overall, the trend, the demand pattern does improve. I think Q2, we did a guided sequentially flattish, and I think we'll start to see Q3, especially Q4, you will see year-over-year increase, especially in Q4.

Speaker Change: Yeah.

Speaker Change: Ross and thank you for the question on the impact of the site, we started to see a.

Ross Seymore: Thank you.

Ross Seymore: Q2, we did have guided and sequentially flattish and I think we'll start to see Q3, especially Q4, you will see a year over year increase in the specialty in Q4.

Speaker Change: Gradual recovery I think they are signs, especially the order pattern that book to bill ratios that we see improving AR in the like.

Ross Seymore: Great. Thanks for that and I guess as my last question would be on the Opex side of things.

Speaker Change: Like aerospace and defense and that also tested measurement decide that we see a very visible improvement industrial side. The improvement isn't licensed so their inventory still are among different customers, but the.

Ross Seymore: Added to the overall number for the second quarter of $2 3 billion, you said Theres 50 million from <unk> and there is that the entirety of S. E T side of things or what should we think for kind of full year opex or the second half. However, you want to discuss it.

Speaker Change: Overall, the trend the demand pattern in pool I think Q.

Speaker Change: Yeah Ross. Thank you for the question for the <unk> design team.

Jean Hu: Thanks for that. And I guess as my last question would be on the OPEX side of things, you know, you got into the overt number for the second quarter 2.3 billion, you said there's 50 million from ZT in there. Is that the entirety of the ZT side of things? Or what should we think for kind of full year OPEX or the second half?

Speaker Change: Q2, we did have guided us sequentially flattish and I think we'll start to see Q3, especially Q4, you will see a year over year increase especially in Q4.

Speaker Change: We view it as a quantity the incremental opex that is a positive 15 million a two.

Speaker Change: $2 3 billion and include everything from GT, because we closed the transaction on March 31st Yeah. I think when you look at the overall, our opex to increase year over year, we continue to drive revenue growth and to increase them all that all packs.

Great. Thanks for that and I guess as my last question would be on the Opex side of things.

Jean Hu: Yeah, Ross, thank you for the question. For the ZTE design team, we view it as quarterly, the incremental OPEX is about $50 million. That $2.3 billion includes everything from ZTE, because we closed the transaction on March 31st. I think when you look at the overall, our OPEX increase year-over-year, we continue to drive revenue growth to increase more than OPEX. Looking at the Q2, at the middle point of our guidance, the revenue will be increasing 27%, and we do expect the earnings per share growing much faster than the top-line revenue growth. So OPEX side, we'll be very disciplined to continue to manage.

Speaker Change: Added to the overall number for the second quarter of $2 3 billion, you said Theres 50 million from <unk> and there is that the entirety of the Z T side of things or what should we think for kind of the full year opex or the second half. However, you want to discuss it.

Speaker Change: Looking into Q2.

Speaker Change: At the Middle point of our guidance and the revenue will be increasing 27% and we do expect the earnings per share growing much faster than the topline revenue growth. So opex side, there will be very disciplined to continue to manage it.

Speaker Change: Yeah Ross. Thank you for the question for the <unk> design team.

Speaker Change: We view it as a quantity the incremental opex that is a positive 15 million a $2 3 billion and include everything from <unk>, because we closed the transaction on March 31st Yeah. I think when you look at the overall, our opex the increase year over year we.

Speaker Change: Operator, I think we have one time for one more caller. Please thank you.

Speaker Change: No problem and the final question comes from the line of Joe Moore with Morgan Stanley. Please proceed with your question.

Speaker Change: To drive revenue growth and to increase more than opex.

Joe Moore: Great. Thank you.

Speaker Change: One of the things you are cloud customers have been talking about is this kind of growth in.

Speaker Change: Looking into Q2.

Speaker Change: At the Middle point of our guidance revenue will be increasing 27% and we do expect the earnings per share growing much faster than the top line revenue growth. So opex side, there will be very disciplined to continue to manage it.

Speaker Change: In French costs sort of reasoning models using a lot of influence compute and some tightness can you talk about that from Amd's perspective are you seeing that in your business does that change the.

Unknown Executive: Operator, I think we have time for one more caller, please. Thank you.

Joe Moore: And the final question comes from the line of Joe Moore with Great, thank you. One of the things your cloud customers have been talking about is this kind of growth in inference costs, this sort of reasoning models using a lot of inference compute and some tightness. Can you talk about that from AMD's perspective? You know, are you seeing that in your business? Does that change the focus that you have going forward? Sure, Joe. So I think overall, what we're seeing is that, you know, with these new reasoning models, the inferencing is more important. And there's also a move to more distributed inferencing.

Focus that you have going forward.

Speaker Change: Sure Joe So I think overall, what we're seeing is that with these new reasoning models.

Speaker Change: Operator, I think we have one time for one more caller. Please thank you.

Speaker Change: No problem and the final question comes from the line of Joe Moore with Morgan Stanley. Please proceed with your question.

Speaker Change: Inferencing is more important and there is also a move to more distributed inferencing. So I think that it plays into our strengths I think we have demonstrated with <unk> 300 that we are excellent inference solution and that holds true for three five and $3 50 series as well so we continue to see.

Speaker Change: Great. Thank you.

Speaker Change: One of the things you are cloud customers have been talking about is this kind of growth in.

Speaker Change: In France costs sort of reasoning models using a lot of influence compute and some tightness can you talk about that from <unk> perspective are you seeing that in your business does that change the focus that you have going forward.

Speaker Change: With our memory bandwidth and memory capacity advantages Thats a positive.

Lisa Su: So I think that plays into our strengths. I think, you know, we have demonstrated with MI300 that we are an excellent inference solution. And, you know, that holds true for 365 and, you know, 350 series as well. So, you know, we continue to, you know, see with our memory bandwidth and, you know, memory capacity advantages that's a positive. I will say that, you know, as we're going into this, the number of workloads that we're seeing overall is expanding. So, you know, we're seeing both training and inferencing as important workloads that we're working on. And, you know, our customers continue to demonstrate.

Speaker Change: We'll say that as we're going into this the number of workloads that we're seeing overall is expanding so we're seeing both training and inferencing.

Speaker Change: Sure Joe So I think overall, what we're seeing is that with these new reasoning models. The inferencing is more important and there is also a move to more distributed inferencing. So I think that it plays into our strengths I think we have demonstrated with <unk> 300 that we are in excellent inference salute.

Speaker Change: Some important workloads that are that we're working on and our customers continue to demonstrate I think the desire that we are seeing probably from a trend standpoint is that there are many models that people are using today, so theyre not necessarily using one model, they're actually using several different models and so the optimizations around that.

Speaker Change: And that holds true for three five and $3 50 series as well. So we continue to see with our memory bandwidth and memory capacity advantages. That's a positive I will say that as we're going into this the number of workloads that we're seeing overall is expanding so we're seeing both training and inference.

Speaker Change: Are the things that we're doing with our <unk> software suite.

Speaker Change: Great and then.

Lisa Su: I think the desire that we're seeing probably from a trend standpoint is that there are many models that people are using today. So they're not necessarily using one model. They're actually using several different models. And so the optimizations around that are the things that we're doing with our, you know, RockM software suite.

Speaker Change: Just an update on your thoughts on competing with custom silicon with Asics and AI space.

Speaker Change: Most of your.

Speaker Change: As important workloads that are that we're working on and our customers continue to demonstrate I think the desire that we are seeing probably from a trend standpoint is that there are many models that people are using today, so theyre not necessarily using one model, they're actually using several different models and so the optimum.

Speaker Change: The largest customers also have a custom silicon offering so.

Speaker Change: Will they invest in both AMD and Asics and just how do they decide how to a portion of that investment.

Yeah, I mean, Joe I view them as really two different things I think one of the primary aspects as we've talked about the 500 billion Tam and the opportunities. There look we think <unk> have a place.

Lisa Su: Great.

And then just an update on your thoughts on competing with custom silicon with ASICs in the AI space. You know, most of your largest customers also have a custom silicon offering. So, you know, will they invest in both AMD and ASICs? And just how do they decide how to apportion that Yeah, I mean, Joe, I view them as really two different things. You know, I think one of the primary aspects, as we've talked about, you know, the $500 billion TAM and, you know, the opportunities there, look, we think ASICs have a place, we happen to think GPUs have, you know, a larger piece of that, because the models are changing, you know, so much.

Speaker Change: <unk> around that are the things that we're doing with our <unk> software suite.

Speaker Change: We happen to think Gpus have a larger piece of that because of the models are changing so much and from our standpoint.

Great and then.

Just an update on your thoughts on competing with custom silicon with Asics and AI space.

Speaker Change: It's really important to have competitive tcl and.

Speaker Change: Most of your.

Speaker Change: Our largest customers also have a custom silicon offerings. So.

Speaker Change: And people want choice to get there, especially as insurance cost becomes so important and where we're working on trying to expand the overall inferencing.

Speaker Change: Will they invest in both AMD and Asics and just how do they decide how to a portion of that investment.

Speaker Change: Yeah, I mean, Joe I view them as really two different things I think one of the primary aspects as we've talked about the 500 billion Tam and the opportunities. There. We think <unk> have a place we happen to think Gpus have a larger piece of that because of the models are changing.

Speaker Change: Sort of capability out there. So I don't think it's an either or I think it's a let's get the best solutions out there and we will.

And, you know, from our standpoint, you know, it's really important to have competitive TCO. And people want choice to get there, especially at inference costs. That's become so important. And we're, you know, we're working on trying to expand the overall inferencing, you know, sort of capability, you know, out there. So I don't think it's an either or, I think it's a let's get the best solutions out there. And we will, you know, certainly believe that we're very competitive in inferencing. And I think we are also becoming a much more, you know, sort of solution for training as well.

Speaker Change: Certainly believe that we're very competitive in inferencing and I think we are also becoming a much more.

Speaker Change: Sort of a solution for training as well.

Speaker Change: So much and from our standpoint.

Speaker Change: It's really important to have competitive tcl and.

Speaker Change: Okay.

Speaker Change: And ladies and gentlemen that does conclude the question and answer session and also concludes today's teleconference. We thank you for your participation you may disconnect your lines at this time.

Speaker Change: And people want choice to get there, especially as insurance cost becomes so important and where we're working on trying to expand the overall inferencing.

Speaker Change: Sort of capability out there. So I don't think it's an either or I think it's a let's get the best solutions out there and we will.

Ladies and gentlemen, that does conclude the question and answer session and that also you may disconnect your line.

Speaker Change: Certainly believe that we're very competitive in inferencing and I think we are also becoming a much more.

Speaker Change: Sort of a solution for training as well.

Speaker Change: Okay.

Speaker Change: And ladies and gentlemen that does conclude the question and answer session and that also concludes today's teleconference. We thank you for your participation you may disconnect your lines at this time.

Speaker Change: Okay.

Speaker Change: [music].

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