AMD Earnings Top Estimates on Gains in AI Accelerators

let's talk about the magic of AMD the magic of Lisa zoo I think what everyone knows Nvidia is really stolen the spotlight over the past few months but AMD has made it clear that it's going to be a big player in this space as well yes and I mean look the results were no surprise as we heard from India last week that the PC market inventory digestion was almost finished and Intel also beat on their client segment and I think we're going to see the same thing happening with AMD that now there's a high probability that PC market has turned the corner and we are on a path towards the recovery curious when we talk about the mix of Revenue kind of where it comes next or at least where the big growth story is going to be are we talking about gaming are we talking about just general client Revenue are we talking about data centers where I mean so if you look into second half it's which is typically a seasonally strong period for PCs so we expect that as the recovery starts coming gradually also when we look at the data center for the AMD specific they are expecting to ramp two of their latest new products and given the recent share gains we expect sequential second half recovery to be strong in data center for AMD well Clinton in your preview you wrote that data center growth expected to resume after a pause we look at the data center Revenue it came in a little bit light 1.32 billion dollars the estimate had been for 1.4 billion dollars where do these numbers put AMD on that pack path back to growth for data centers specifically I think it's exactly where we expected to be I mean the current overall data center environment is mixed there is some inventory digestion which is still expected to be persistent but for the company specifically the second half Catalyst are going to be the Genoa product ramp and the recent share gains which are expected to offset some of this overall Market weakness if you will and looking through the press release the CEO coming out and saying that our AI engagements increased by more than seven times in the quarter of course it feels like the semiconductor industry is where we're seeing a lot of this AI Euphoria play out when you think about an AMD and the AI opportunity set there how meaningful is that a minute it is significant for them I mean look currently when we look in AI it's primarily dominated by Nvidia gpus right so there is customers are looking for a second alternative now in the near term um the best positioned company to come in as a second alternative there is AMD so for them even if getting a small sliver of the pie could mean significant upside uh curious if you anticipate and forgive me if this is kind of a bizarre question if we start to see any sort of Partnerships among some of these companies because there's so much here for the taking if you will but we also know that this is an expensive proposition for a lot of them as well yeah I mean um you know you see this typically uh in the sun connector industry when customers start building Second Source or second supplier base with Partnerships so we do expect Partnerships going forward for AMD when you know large customers want to bring in them as a supplier is there any sense here that when we talk about business spending so when we talk about the corporate clients that might be gravitating to the AI space whether they're just trying to test it out or whether they actually do have some sort of meaningful business model for uh trying to feed that through to its own clients here is there any sense here that those potential clients actually have a path forward to actually generate revenue for this or is this just now something internal that they'll just use for their own devices I mean look when you look at the largest drivers customers who are driving this pen they are the top four five cloud service providers or hyperscalers and that's where we expect those are the ones we expect to drive the most revenue from this generator device so so far it looks like the the primary Market will be captured by those

Channel: Bloomberg Television

Views: 3,480

Keywords: Bloomberg

Id: VgUJ6g9xKXE

Length: 4min 9sec (249 seconds)

Published: Tue Aug 01 2023