1 00:00:00,120 --> 00:00:02,040 Speaker 1: We look at AI. You know, when I look at 2 00:00:02,120 --> 00:00:05,040 Speaker 1: the potential of AI, it is really the you know, 3 00:00:05,240 --> 00:00:08,680 Speaker 1: single most important you know sort of you know, technology 4 00:00:08,680 --> 00:00:12,040 Speaker 1: innovation over the last fifty years. So AI has so 5 00:00:12,160 --> 00:00:16,160 Speaker 1: much potential to you know, change the way our businesses work, 6 00:00:16,239 --> 00:00:19,440 Speaker 1: to change our personal productivity, to really change the way 7 00:00:19,480 --> 00:00:22,560 Speaker 1: we do research, and a whole bunch of things. You know. 8 00:00:22,600 --> 00:00:25,880 Speaker 1: From our standpoint, we see the AI tam growing to 9 00:00:26,079 --> 00:00:29,120 Speaker 1: upwards of you know, four hundred billion by twenty twenty seven. 10 00:00:29,840 --> 00:00:32,280 Speaker 1: I think from an A m D standpoint, you know, 11 00:00:32,320 --> 00:00:34,880 Speaker 1: you were at our launch ed in December. It was 12 00:00:34,920 --> 00:00:37,800 Speaker 1: a great coming out of party for the A m 13 00:00:37,880 --> 00:00:41,520 Speaker 1: D you know, AI capabilities, and it's gone really well. 14 00:00:41,600 --> 00:00:47,480 Speaker 1: I think our customer interactions, our product qualifications, our ramp 15 00:00:47,520 --> 00:00:50,599 Speaker 1: have gone really well. So we were able to update 16 00:00:51,040 --> 00:00:54,320 Speaker 1: you know, some of our numbers this this this past week. 17 00:00:54,960 --> 00:00:57,560 Speaker 2: I think a lot of folks focused on that ramp 18 00:00:57,600 --> 00:00:59,240 Speaker 2: and how it went in the quarter. You know, you 19 00:00:59,320 --> 00:01:01,920 Speaker 2: exceeded the four hundred million that you'd told me about 20 00:01:02,240 --> 00:01:05,400 Speaker 2: at that event. So it's three point five billion dollars 21 00:01:05,480 --> 00:01:09,120 Speaker 2: of sales this year for MI I three hundred What's 22 00:01:09,200 --> 00:01:13,119 Speaker 2: interesting here is kind of your ramp relative to what's 23 00:01:13,160 --> 00:01:16,120 Speaker 2: happening on the supply side, And I wondered how big 24 00:01:16,120 --> 00:01:18,880 Speaker 2: a factor supply will be in matching or beating that 25 00:01:19,000 --> 00:01:19,959 Speaker 2: number in twenty four. 26 00:01:21,160 --> 00:01:26,080 Speaker 1: Yeah. Absolutely, And this is the fastest product ramp you know, 27 00:01:26,120 --> 00:01:29,080 Speaker 1: in our history. So you know, we exceeded our numbers 28 00:01:29,120 --> 00:01:33,000 Speaker 1: in Q four over four hundred million. We're going to 29 00:01:33,040 --> 00:01:35,800 Speaker 1: grow into Q one, and we update our full year 30 00:01:35,840 --> 00:01:38,160 Speaker 1: forecast from two billion to three and a half billion. 31 00:01:38,720 --> 00:01:40,800 Speaker 1: The way we think about that is that's a customer 32 00:01:40,840 --> 00:01:44,200 Speaker 1: demand statement, So that is customers that we've engaged in 33 00:01:44,680 --> 00:01:47,840 Speaker 1: who have made commitments to us, who have placed orders 34 00:01:47,880 --> 00:01:51,880 Speaker 1: with us. We're planning for a much larger number as 35 00:01:51,880 --> 00:01:53,440 Speaker 1: it relates to the supply chain. This is what we 36 00:01:53,480 --> 00:01:56,440 Speaker 1: should do. We always plan for success. So you know, 37 00:01:56,480 --> 00:01:59,360 Speaker 1: my view is it's still very very early in the 38 00:01:59,400 --> 00:02:03,120 Speaker 1: in the inning for AI accelerators and particularly for mi 39 00:02:03,160 --> 00:02:06,280 Speaker 1: I three hundred, but this is an opportunity for us 40 00:02:06,320 --> 00:02:10,200 Speaker 1: to continue to build a major growth driver as we 41 00:02:10,720 --> 00:02:13,440 Speaker 1: work with our top customers on their AI plans. 42 00:02:13,680 --> 00:02:15,919 Speaker 2: And Lisa, just to clarify in Layman's term, so your 43 00:02:15,960 --> 00:02:20,560 Speaker 2: expectation is the supply available to you from a volume 44 00:02:20,560 --> 00:02:24,440 Speaker 2: perspective in twenty four will be greater than the three 45 00:02:24,440 --> 00:02:27,600 Speaker 2: point five billion dollars in demand that you feel confident 46 00:02:27,639 --> 00:02:28,360 Speaker 2: in right now. 47 00:02:29,160 --> 00:02:30,200 Speaker 1: That's absolutely right, Ed. 48 00:02:31,560 --> 00:02:34,839 Speaker 2: So you and I talked about this kind of change 49 00:02:34,880 --> 00:02:39,480 Speaker 2: in what's happening in the use case of AI accelerators, 50 00:02:39,520 --> 00:02:44,560 Speaker 2: moving from a predominantly training focused environment to inference, and 51 00:02:44,600 --> 00:02:47,520 Speaker 2: I think I'm right in saying you're confident that AMD 52 00:02:47,639 --> 00:02:50,959 Speaker 2: is going to play a key role in that inference part. 53 00:02:51,480 --> 00:02:54,320 Speaker 2: But there's also the question of when the psychology of 54 00:02:54,360 --> 00:02:58,600 Speaker 2: the customer changes. And I think one question that one 55 00:02:58,600 --> 00:03:01,400 Speaker 2: of the analysts covering the start had, pf Ferragu, was 56 00:03:01,440 --> 00:03:04,320 Speaker 2: on the show with me earlier, is when do the 57 00:03:04,360 --> 00:03:07,880 Speaker 2: customers commit? When do they basically say, we've got good 58 00:03:07,960 --> 00:03:11,960 Speaker 2: visibility on our on our training and now inference demands 59 00:03:12,000 --> 00:03:15,720 Speaker 2: over a multi year horizon. Yeah, I think Ed. 60 00:03:16,200 --> 00:03:19,000 Speaker 1: You know, as always, when we're dealing with you know, 61 00:03:19,040 --> 00:03:22,480 Speaker 1: sort of deep partnerships like we have, you know across 62 00:03:23,080 --> 00:03:25,120 Speaker 1: you know, sort of the hyperscalers. You know, at our 63 00:03:25,160 --> 00:03:29,160 Speaker 1: event we mentioned you know, Microsoft Oracle Meta of all 64 00:03:29,240 --> 00:03:32,320 Speaker 1: committing to adopt I three hundred. You know, we really 65 00:03:32,320 --> 00:03:35,800 Speaker 1: plan multi year roadmaps as well as you know sort 66 00:03:35,800 --> 00:03:39,240 Speaker 1: of capabilities. So I'm super happy with how things have gone. 67 00:03:39,520 --> 00:03:41,680 Speaker 1: I think key in all this is the devil is 68 00:03:41,680 --> 00:03:45,160 Speaker 1: in the details. The engineering is really important. We've made 69 00:03:45,200 --> 00:03:48,920 Speaker 1: tremendous amount of progress over the last couple of months. 70 00:03:49,480 --> 00:03:51,880 Speaker 1: You've heard directly from you know, one of our customers, 71 00:03:52,000 --> 00:03:54,400 Speaker 1: you know, Microsoft, Kevin Scott, talked about the work that 72 00:03:54,440 --> 00:03:59,560 Speaker 1: they've been doing with their most important workloads around you know, 73 00:03:59,640 --> 00:04:03,960 Speaker 1: chat PT and its capabilities. We know we have confidence 74 00:04:04,120 --> 00:04:07,600 Speaker 1: that from a performance standpoint, we can be very competitive 75 00:04:08,000 --> 00:04:12,480 Speaker 1: and from that standpoint, the you know, the customer conversations, 76 00:04:12,560 --> 00:04:16,480 Speaker 1: our multi year, multi generational conversations. We certainly have good 77 00:04:16,560 --> 00:04:20,159 Speaker 1: visibility in terms of exact orders for the next couple 78 00:04:20,160 --> 00:04:23,320 Speaker 1: of quarters. But more importantly, we're planning, you know, sort 79 00:04:23,320 --> 00:04:24,880 Speaker 1: of how is this market going to grow and how 80 00:04:24,880 --> 00:04:25,760 Speaker 1: do we grow together? 81 00:04:26,320 --> 00:04:30,039 Speaker 2: You know, going forward, Lisa, where are we at with 82 00:04:30,279 --> 00:04:32,919 Speaker 2: PC and everyday serve demand? 83 00:04:34,040 --> 00:04:36,279 Speaker 1: Well, it's a it's a good question. I think we've 84 00:04:36,320 --> 00:04:39,839 Speaker 1: gone through some ups and downs in you know, the 85 00:04:39,839 --> 00:04:43,200 Speaker 1: PC market and the traditional server market. I think what 86 00:04:43,240 --> 00:04:45,520 Speaker 1: we saw is a nice recovery into the second half 87 00:04:45,520 --> 00:04:48,280 Speaker 1: of the year. So we were very pleased with our performance. 88 00:04:48,360 --> 00:04:51,599 Speaker 1: Frankly in traditional server in the second half of the year, 89 00:04:51,640 --> 00:04:55,640 Speaker 1: we grew, you know, strong double digits. And more importantly, 90 00:04:56,040 --> 00:04:58,239 Speaker 1: what we see is, you know, our products are getting 91 00:04:58,240 --> 00:05:02,080 Speaker 1: a lot of tractions. So our Genoa or zenfour product 92 00:05:02,160 --> 00:05:05,640 Speaker 1: line has ramped really nicely. As we go into twenty 93 00:05:05,800 --> 00:05:08,119 Speaker 1: twenty four, you know, my expectation is that the server 94 00:05:08,200 --> 00:05:12,200 Speaker 1: market will grow, and that we will grow significantly faster 95 00:05:12,279 --> 00:05:15,159 Speaker 1: than the market, just given the strength of our product portfolio, 96 00:05:15,600 --> 00:05:17,680 Speaker 1: and there are a lot of data center refreshes, you know, 97 00:05:17,760 --> 00:05:21,559 Speaker 1: going on. So that's the server market. And you also 98 00:05:21,600 --> 00:05:23,799 Speaker 1: asked about the PC market. I think the PC market 99 00:05:23,839 --> 00:05:26,120 Speaker 1: also recovered nicely in the second half of the year. 100 00:05:26,760 --> 00:05:28,960 Speaker 1: You know, in general, the PC market tends to be 101 00:05:29,000 --> 00:05:31,320 Speaker 1: a little bit seasonal, so the second half is stronger 102 00:05:31,360 --> 00:05:34,000 Speaker 1: than the first half. And then we see that also 103 00:05:34,040 --> 00:05:36,360 Speaker 1: in twenty twenty four. But we also see the PC 104 00:05:36,520 --> 00:05:39,719 Speaker 1: market growing let's call it low single digits, you know, 105 00:05:39,800 --> 00:05:44,120 Speaker 1: here in twenty twenty four. And within that, the very 106 00:05:44,160 --> 00:05:47,960 Speaker 1: exciting part about the PC market is AIPCS, which we 107 00:05:48,000 --> 00:05:49,880 Speaker 1: think can grow substantially faster. 108 00:05:51,120 --> 00:05:54,400 Speaker 2: Lisa, the tension in the share reaction is exactly that 109 00:05:55,000 --> 00:05:59,200 Speaker 2: enthusiasm for I three hundred and concern about a recovery 110 00:05:59,240 --> 00:06:03,919 Speaker 2: and end market elsewhere. How do you see the tension 111 00:06:03,960 --> 00:06:09,279 Speaker 2: between those two product lines essentially for you, evolving in 112 00:06:09,320 --> 00:06:11,599 Speaker 2: this current period and throughout twenty four. 113 00:06:12,960 --> 00:06:16,000 Speaker 1: You know, I'm actually really excited about twenty four. You know, 114 00:06:16,040 --> 00:06:18,960 Speaker 1: I start every year always quite optimistic, but I look 115 00:06:19,000 --> 00:06:22,240 Speaker 1: at twenty four as you know, such an important year 116 00:06:22,279 --> 00:06:25,279 Speaker 1: for us. I think, you know, twenty three was when 117 00:06:25,360 --> 00:06:29,279 Speaker 1: we established ourselves as you know, a key AI contender. 118 00:06:29,960 --> 00:06:32,280 Speaker 1: I think twenty four, you know, we're going to show 119 00:06:32,520 --> 00:06:37,440 Speaker 1: just how how capable and how much you know, AI 120 00:06:37,680 --> 00:06:40,080 Speaker 1: is now part of you know, really the entire a 121 00:06:40,200 --> 00:06:42,760 Speaker 1: MD story. And in terms of the other markets, look, 122 00:06:42,839 --> 00:06:45,920 Speaker 1: I like PCs. I think traditional server is going to 123 00:06:46,000 --> 00:06:50,320 Speaker 1: recover nicely as well, and you know, put aside some 124 00:06:50,400 --> 00:06:54,160 Speaker 1: of the temporal things. You know, we've said that you know, 125 00:06:54,240 --> 00:06:57,360 Speaker 1: revenue will be more second half weighted in twenty four. 126 00:06:57,400 --> 00:06:59,640 Speaker 1: I think we feel really good about the setup going 127 00:06:59,680 --> 00:07:02,320 Speaker 1: into the next few quarters, given the strength of our 128 00:07:02,320 --> 00:07:06,280 Speaker 1: product portfolio and also you know, the great customer partnerships 129 00:07:06,279 --> 00:07:06,640 Speaker 1: that we have