AMD Q1 2024 Earnings

Call Details

• Call Title: Advanced Micro Devices Q1 2024 Earnings Call
• Date: April 30, 2024 at 9:00 PM UTC
• Management Team:
  • Lisa Su (Chair and Chief Executive Officer)
  • Jean Hu (Executive Vice President, Chief Financial Officer, and Treasurer)
  • Mitch Haws (Vice President, Investor Relations)
  • Mark Papermaster (Executive Vice President and Chief Technology Officer)

Call Summary

Financial Performance

• Revenue for Q1 2024 was $5.5B, up 2% year-over-year and down 11% sequentially.
• Non-GAAP gross margin was 52%, up 230 basis points year-over-year.
• Operating expenses were $1.7B, up 10% year-over-year due to increased R&D and marketing investments for AI.
• Operating income was $1.1B, representing a 21% operating margin for the quarter.
• Diluted earnings per share was $0.62 for the quarter, up 3% year-over-year.
• Data center revenue was a record $2.3B, up 80% year-over-year and up 2% sequentially, and accounted for more than 40% of total revenue.
• Gaming revenue was $922M, down 48% year-over-year and down 33% sequentially, while embedded revenue was $846M, down 46% year-over-year and down 20% sequentially.

Guidance

• Company expects Q2 2024 revenue of approximately $5.7B, plus or minus $300M.
• Company expects Q2 non-GAAP gross margin to be approximately 53% and non-GAAP operating expenses to be approximately $1.8B.
• Company expects Q2 non-GAAP effective tax rate of 13% and diluted share count of approximately 1.64B shares.
• Company expects Q2 data center segment revenue to increase by a double-digit percentage sequentially, primarily driven by the data center GPU ramp.
• Company expects Q2 client segment revenue to increase sequentially and Q2 embedded segment revenue to be flat sequentially.
• Company expects Q2 gaming revenue to decline by a significant double-digit percentage sequentially.
• Company raised full-year 2024 data center GPU revenue expectation to exceed $4B, up from $3.5B guided in January.