ADVANCED MICRO DEVICES INC Q3 FY2024 earnings call

• Data Center: Record revenue driven by EPYC and Instinct products; EPYC saw server CPU share gains, cloud providers expanded use, and fifth-gen EPYC launched; Instinct GPU revenue ramped with MI300X adoption, and acquisition of ZT Systems announced. • Client: Strong demand for Ryzen 9000 series processors, growth in mobile and commercial PC markets. • Gaming: Transitioning to RDNA 4 architecture, preparing for next-gen GPUs. • Embedded: Gradual recovery with strength in test/emulation and aerospace, Versal family momentum.

Data Center segment revenue reached a record $3.5 billion, up 122% year-over-year, accounting for 52% of total revenue. Client segment revenue was $1.9 billion, up 29% year-over-year. Gaming segment revenue declined 69% year-over-year to $462 million. Embedded segment revenue decreased 25% year-over-year to $927 million.

• Fourth quarter revenue expected to be approximately $7.5 billion, up 22% year-over-year. • Data Center GPU revenue expected to exceed $5 billion in 2024. • Fourth quarter gross margin expected to be approximately 54%.

• Market demand fluctuations affecting segment performances. • Supply chain challenges impacting product ramp-up. • Intense competition in the semiconductor market.

Q: On Data Center GPU guidance increase, what drove the change?

A: Strong quarter with customer milestones, exceeding initial expectations.

Q: On Q4 gross margin guidance, what are the puts and takes?

A: Mix driven by Data Center growth, but client business has lower margins.

Q: On supply chain for Data Center GPU, how is it evolving?

A: Supply chain has ramped, but tight environment continues.

Q: On Embedded business, what's the outlook?

A: Modest recovery with mixed subsegments.