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Advanced Micro Devices, Inc. (AMD) BofA Securities 2024 Global Technology Conference (Transcript)
AMDAMD(AMD)2024-06-05 19:50

Summary of Advanced Micro Devices, Inc. (AMD) Conference Call Company Overview - Company: Advanced Micro Devices, Inc. (NASDAQ: AMD) - Event: BofA Securities 2024 Global Technology Conference Call - Date: June 5, 2024 - Participants: Jean Hu (CFO), Vivek Arya (Bank of America Securities) Key Highlights from the Conference Call Industry and Market Position - AMD is positioned as a leader in the semiconductor industry, particularly in AI infrastructure, offering end-to-end solutions from CPU, GPU to NPU [3][8] - The AI market is projected to grow significantly, with AMD targeting a 400billionaddressableopportunityby2027−2028[27][28]ProductAnnouncements−∗∗AIPCRyzenAI300Series∗∗:FeaturesasinglechipwithZen5CPU,latestGPU,andpowerfulNPU,achievingupto50TOPS,surpassingMicrosoftAIPCrequirements[4][39]−∗∗TurinGen5EPYCCPU∗∗:Previewedwithupto192cores,expectedtoenhanceperformanceandefficiencyindatacenters,availableinthesecondhalfof2024[5]−∗∗MI300andMI325GPUs∗∗:MI300hasbecomethefastestrampingrevenueproductinAMD′shistory,withaforecastedrevenueincreasefromover400 billion addressable opportunity by 2027-2028 [27][28] Product Announcements - **AI PC Ryzen AI 300 Series**: Features a single chip with Zen 5 CPU, latest GPU, and powerful NPU, achieving up to 50 TOPS, surpassing Microsoft AI PC requirements [4][39] - **Turin Gen 5 EPYC CPU**: Previewed with up to 192 cores, expected to enhance performance and efficiency in data centers, available in the second half of 2024 [5] - **MI300 and MI325 GPUs**: MI300 has become the fastest ramping revenue product in AMD's history, with a forecasted revenue increase from over 3.5 billion to over 4billionfor2024[9][10]−∗∗FutureGPURoadmap∗∗:MI350andMI400expectedin2025and2026,respectively,withsignificantperformanceimprovementsoverpreviousgenerations[7][8]FinancialPerformanceandProjections−AMD′srevenuemarketsharereached334 billion for 2024 [9][10] - **Future GPU Roadmap**: MI350 and MI400 expected in 2025 and 2026, respectively, with significant performance improvements over previous generations [7][8] Financial Performance and Projections - AMD's revenue market share reached 33% by the end of Q1 2024, with expectations for strong year-over-year growth in Q2 [34] - The company anticipates continued growth in the server business, driven by new product launches and TCO benefits for enterprise customers [36] Supply Chain and Production - AMD is facing tight supply chain conditions but is working closely with memory suppliers to ensure adequate support [15][16] - The ramp-up of MI300X has exceeded expectations, with over 1 billion in revenue generated in less than two quarters [10] Competitive Landscape - AMD is competing against established players like NVIDIA, focusing on high-performance compute in both CPU and GPU markets [22][24] - The company emphasizes its software capabilities (ROCm) to enhance GPU performance and efficiency [23] AI and Non-AI Workloads - AMD believes that different workloads require different compute engines, with CPUs still playing a crucial role in foundational workloads [31][32] - The company is addressing both AI and non-AI workloads, ensuring customers can choose the best solutions for their needs [32] Gross Margin and Financial Strategy - AMD's gross margin improved from 50% in 2023 to 52.3% in Q1 2024, with expectations for further improvement [47] - The company aims to maintain a strong gross margin while launching new products annually [46] Future Outlook - AMD is optimistic about its growth trajectory in the AI market, with a focus on expanding its product portfolio and addressing customer needs [20][29] - The company is committed to enhancing its competitive positioning in the semiconductor market, particularly in AI and data center solutions [24][25] Additional Insights - AMD's strategy includes a focus on customer engagement and understanding their long-term needs, which is crucial for capital expenditure planning [19][20] - The company is well-positioned to compete in the evolving landscape of AI and high-performance computing, leveraging its historical expertise and product innovation [22][24]