AMD(AMD)2024-12-12 21:51Company and Industry Key Points 1. Market Share Growth: AMD has seen significant growth in both server and PC markets. In the server CPU market, AMD's market share has increased from very low single digits a few years ago to 34% in Q3 2024. In the PC market, AMD's desktop market share reached 27% in Q3, and its client mobile market share reached 19%[3][4]. 2. Server CPU Performance: AMD's server CPU performance has been driven by innovative product generation, leading TCO performance, and strong execution. The Zen 5, part of the Turin family, is expected to continue driving leadership performance[3]. 3. Enterprise Market Penetration: AMD is underrepresented in the enterprise market, but has made efforts to increase FAE support and is seeing double-digit growth in the enterprise business over the last five quarters[6]. 4. AI Market Growth: AMD's MI series has seen impressive growth, with revenue exceeding $5 billion in 2024. The market backdrop for AI infrastructure build-out and user cases continues to be strong, with AMD planning to launch MI325 and MI350 in 2025[13]. 5. Customer Diversification: AMD is engaging with a diverse set of customers, including Microsoft, Meta, Oracle, AWS, and other hyperscale customers, to broaden applications and address new applications[17]. 6. Gross Margin Improvement: AMD's gross margin has improved from 50% in 2023 to 53% in 2024, with a focus on expanding gross margin over time, especially in the data center GPU segment[21]. 7. AI PC Market: AMD expects AI PC adoption to be moderate in 2024 but to grow significantly in 2025, driven by more applications and a refresh cycle due to the end of life of Windows 10[23]. 8. ARM Market: AMD views itself as a high-performance computing company and has the capability to produce ARM-based PCs if needed[25]. 9. Embedded Business: AMD's embedded business has seen significant design wins and is expected to gradually recover in 2025[28]. 10. Operational Efficiency: AMD plans to continue investing in R&D aggressively but ensure that OpEx increases are less than top-line revenue growth, driving operating model leverage[30].