AMD Q1 2026 EARNINGS LIVE | LISA SU SPEAKS

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All right, hello everybody. Welcome back to the channel. We are here live for the market close AMD Q1 2026 earnings. I am here with Tanner, Jose, and Neil will be here soon. Tanner, how you doing? I'm doing good, man. I'm doing good. A lot of the AI infrastructure names are rocketing. Shopify's having an unbelievably terrible day even though they did great earnings.

Palantir in a similar boat, so it's just it's not the day for for software and it's all the the great days are for AI infrastructure, but luckily we're covering AMD tonight, so it should be good. The market's saying it's going to be a good day. Yeah. First of all, S&P's at all-time highs. Obviously, there's been a lot of momentum right here.

Oil actually down on the day, so that's good. Regardless of the names that are down, whether it's a Palantir, a Shopify, or even a Meta, the names that matter are going up. Micron, Sandisk, Intel, and obviously AMD is the big one that we're going to analyze today. Let's bring on someone else to the show who's very early AMD as well.

Couch, what's up? Hello everybody. How are we doing today? We're doing good. Hey Couch, I'll give you the first word cuz I think you've been an AMD earlier than than most people. What are what is your thoughts on the 50% rise this year and then what are you expecting going into the print today? This is very stressful.

I can tell you that. It's very stressful going into an earnings report when you're Oh. I got shut down by Big Tech. We don't have enough tokens. They they messed up Palantir's earnings call yesterday and now Dude, that was so funny. That image with him with holding three mics. Okay, we lost Neil. All right.

All right, Neil, go ahead. You're back. Yeah, yeah, we lost you for a bit. Yeah, no, I saw. Um So, expectations are high, but I don't know, based on especially Intel's numbers, I just don't see how you see that 9.92 billion dollars in revenue? I don't see how AMD is not at at least 10.3 billion. for the quarter.

But even that's not going to be enough. I think the market is looking for a lot of growth ahead, maybe more momentum, maybe a deal with Anthropic. I don't know, that's the new open AI that's like the Anthropic is the open AI of the early 2025. Um but yeah, more more signs of acceleration in growth and demand for the whole product portfolio that AMD um that AMD offers.

And remember, the the guidance that they gave us for the next 3.3 to 5 years, which was last year, means that they are still expected to grow an insane amount, like 100 billion dollars for for for data center. I mean it that that number is is very very big, so I'm expecting a very good quarter. Is it going to be enough?

I don't know. I mean, you I think I guess you just spoke about Shopify, which is an excellent company where revenue accelerated, and that one's down 15, 16%. I actually we just made a quick post on it right now on X, and seems like Harley hardly liked it, so that's a good sign. But yeah, like Tanner said, it seems like names like AMD are no matter what going to go up, and names like Shopify, great company, yes, maybe in the software basket, are getting punished.

Even Palantir, isn't Palantir down today? Yeah, yep, 7%. Yeah, okay. So, I guess growing 85% year-over-year accelerating is not good enough. Uh last quarter on AMD, uh they beat on revenue by 6% they beat on EPS by 23.4%. The stock 24 hours after posting that earnings fell by 17.3%. That's actually when I bought at around 208.

So, that was my entry. Not a massive position, but that was a little bit for me. So, the fact that going into this print, they're going to have to probably beat 6 and 23 as you said, Tanner, but the stock's up 50% and I I would What was it? 80% from the lows at this point? I mean, I can understand Neil's point that there I mean, put in the chat, do you feel a lot of pressure?

I mean, imagine if video was 230 going into the print. I think, you know, people would feel a bit more scared than excited. Yeah, they they end red way more often after earnings than being green. Uh, I'd say maybe 60, almost 70% of the time they end red according to earnings up here. Uh, let me see if we can get Jose on.

Jose, are you there? He said he was going to be a little late, but he's there. He might not be fully connected yet. Um, Okay, so we'll see if we can get Jose on in a bit, but Jose Hard to connect from Puerto Rico or whatever vacation spot he's at now. Well, he literally texted me a photo that he was on vacation, but he said he he said he said he was still going to make the stream.

You're really joking. No, no, he's actually it's it's hilarious, but uh, so the other companies we have are Joby, Oxy, MicroStrategy, Upstart, Lucid, Campus, Arista, Big Bear, MicroStrategy, and Lumentum. Obviously, the majority of the coverage will be AMD. That'll be the call, but we will absolutely get all the results for those and uh, put them up as well.

Here is um, here's the question to you, Neil. Did the CPU shortage that Intel highlighted eight to one I mean, you know AMD better than I think me and Tanner. Is that a legit reason why AMD could beat expectations by like a lot more than what the street Look at this guy. Look at this freaking This guy, bro.

I'm enjoying life. What's going on, guys? Are you pulling a carp right now? Enjoying my vacation. What? I think he's unironically doing a carp thing right now. He doesn't even know he's doing a carp. Do something like this? No. Yeah, he Dude, they they literally his mic didn't We had to give him a physical mic yesterday on the call.

Oh, yeah. I I didn't I don't have my full setup, but I'm like AMD's earnings I have to I have to do this. Vacation off mode for for a bit. Okay, so Jose, I'll throw the question to you then Neil. Does AMD have to have a massive beat on this CPU thesis to to get the print today? I I mean, to get the print today, yes.

Uh I I I think though for long-term investors, it's more of just the um continuing to hear the bullish thesis of the CPU shortage. Uh I think Lisa Su was at a conference call maybe like 2 3 months ago and she mentioned the shortage was expected to last maybe 4 to 5 months. If she can give us maybe a little bit more clarity on that, right?

If she can tell us, "Hey, this shortage is actually going to go into 2027, maybe into 2028." Uh I I think that excitement could could create maybe the the positive print. Um the only negative thing I would say is Neil knows this really well. Lisa is one that's very conservative on what she says and she's very like like she doesn't like to give too much forward guidance.

Um we we've seen it plenty with the MI 450 which is expected to come out in the second half of this year. Um I'm I'm Uh honestly as a AMD shareholder, I didn't really look at what the numbers they have to beat today are. Um because the story is beyond this quarter, right? It's about the MI 450 that's coming out the second half of this year.

Uh are we going to get more c- kind of customers outside of just the uh just the uh who do we have right now? We have meta, we have open AI. Are we going to get Google? Are we going to get Amazon? Right? Because now that anthropic and open AI are working with all these players, they become that open door for AMD.

They're like, "Hey, if I need more compute, can you put that in Amazon?" Right? We know Amazon open AI open AI is working massively with Amazon. Does open AI force Amazon to buy some MI450s to start kind of building up that compute? So so I I need it it's more about that story for the long term. The final thing before I pass it over to me or or or Tanner is I hate that this earnings is going into the event that comes out in July.

So so I think we have the event coming in July 20-something. So Lisa Su might say you're going to hear more about this during that July event. Right? So it's like this is more like a tease opposed to the actual actual um customer relations to some of those AI AI stuff that we might need to hear about.

Yeah, Neil, same question to you. CPU shortage, does Lisa Su really have to prove that AMD's capitalizing on it? I mean I yes, I guess so, but if if they do, we will see it in the numbers. Like if they do, we see it in the numbers, average selling prices and all of that should should be up. They are coming from a position of strength.

So if yes, we will already see it in numbers, but like Jose said, and we've been doing these these streams with AMD for a while. We know that they literally don't tell us much when when we're asking for numbers. Like the whole of last year we thought, "Okay, now they're going to tell us some AI accelerator number." But no, nothing.

Like the double-digit growth number is all would all that we got, but we did have the midterm outlook, at 3 to 5-year outlook that was given to us and I guess that's good enough. Uh And it should be good enough because the numbers that they told us there is are are very very big compared to what AMD is generating today.

It's nothing. Like we just said, one quarter here is already going to be closer to 10.3 billion dollars. Well, 10.3 billion dollars a quarter is not really that much when you look at the total addressable market that Lisa Su is is playing in. And and and and one thing with the CPU shortage, it also is going to indicate how how strong of a partnership they have with TSMC, right?

If somehow Lisa Su was able to talk to to the TSMC's CEO and say, "Hey, look, can you give me a lot more capacity here on the CPU space for the next few quarters?" Um is this going to allow them to grow a lot more market share than Intel as Intel is still kind of building a mixed hybrid, right? So So we're going to see this story play out.

Is it great to be the the partnership with TSMC? And I think the answer is going to be yes. Really quick, Amit, before you started, there's a couple other names. I don't know if you want to add um or if you have Big Bear on there, Dave. Uh Arista Networks. Yep, we have Arista. Let's add Dave. Uh Lucid Tempest is up there, yep.

Do you have TMDX? I do not. Let's do TMDX. TransMedics down two, Dave down five. Has Dave had a good year? I think so, yeah. Yeah, they they've been growing like 60 plus percent year over year for a while. It is one of your only FinTechs that's green. Look at that, 20% this year. PayPal was down 10% today.

I don't know why that was down. Why? It doesn't need a reason, what do you mean? Uh do you have Lucid up there? Yes, we have Lucid. Uh Astera Labs. Coupang. I don't have that one. I'll add that one. Navitas. Oh, Navitas, okay. We got that. That's a big one people care about. Navitas up 10%. All right, so there's a lot of good This is going to be a little madness.

Obviously, AMD will be important, but AMD, remember guys, is usually 4:15. So, we will have 15 minutes before um and hopefully we're going to see what happens. Pump or dump is 50/50. It's 50/50 on my side. I have 56/44. Up 44, down 56. People are saying Ouster is also reporting today. Okay, so we'll add Ouster as well.

All right, so we got 1 minute. Put in the chat if you are long AMD and you trimmed, if you're diamond handing your AMD, if you would just bought AMD, or if you're not touching it. I mean, there's one of four scenarios. Put in the chat which one you are in. I think the majority I would say like 60% of my chat, and I would imagine 70% of our collective chats probably have some exposure to AMD.

Um many have that direct exposure. And so, this is a big one for retail. This is one that retail's been buying heavy since April of 2025, long before that, but obviously got down to 70 bucks around the time, and retail took a big shot on it. It's done very well over the past year. Uh and now we just have to see if Lisa Su can fully deliver here and keep this going.

I see a decent amount of trims, but I see a lot of people with these diamond hand emojis, so Let's see if 400 on deck. I think it's a 10% move up or down. So, we're looking at like 380 or uh 315. Up or down here. I mean, to go to 400, I think they have to come out with some insane guidance. All right, Tuesday, May 5th, 4:00 p.m.

The stock market is now closed. Now the fun begins. Now the fun begins. SPY does not close at an all-time high. We actually dropped a dollar and a half. I'm looking at some of the put flow. 5 million worth of puts were bought just before the close on the SPY. Maybe someone hedging or maybe someone getting a bit bearish right there, but 725 is where we peaked.

723.71 still up 0.79% on the day. Um Nvidia ended up having a red day, 196.50. Palantir, 135.91, down 7%. Shopify was down 15%. Hood up just a little cuz of some of the big BTC momentum, 81,600. SoFi, that stock was down about 1%. Coinbase was down 2.5. Micron, 11% green, 640. Absolutely incredible run.

SanDisk also hit 1,400, closed above 1,400, up 12% and then Intel hit 110, closed at 108. Obviously, these three were absolutely massive. Bloom Energy, that was back up 295, that was up 2.25%. You got SoundHound, that was down 3%. Oracle started catching a bid, up 2.87. Iren also got a bit of a breakout with the acquisition they did this morning, 54.74.

Nabors, 175.92, basically flat and then Coreweave up about 2%, 127.89. Okay. Um Here we go. Let's start off. Tempest, they beat by 35% on EPS, -13 cents versus -20 expected. They beat by 1% on revenue. Tempest is flat. EPS up 46% year-over-year, revenues up 36%, 348 versus 345 million on revenue. Tempest not really moving, but that is your earnings.

MicroStrategy, they missed. Go ahead, Tanner. Tempest is falling now, uh down 4%. Why Why I not seeing it on WeBull? It just went away. Oh, I saw the candle. It wicked to 5140 then it came back to 5379. Is it still there? It's still down two and a half. I don't know if it's not potentially showing. I don't know.

Okay, we'll check that in a second. SMCI is up one. Uh MicroStrategy missed by 102%. They lost $38 a share. The street wanted them to lose 18. They missed 1% of revenue, 124 million versus 125. Again, the earnings are never relevant for MicroStrategy. It's just the price of Bitcoin. But they did miss.

Yeah, the fact that there's even a guide is funny. Yeah, MicroStrategy is up 20% this year. So, you know, it's been uglier for Bitcoin, but MicroStrategy has started to make a comeback. Tempest now is down 4%. I see it on the screen, 5229. SMCI up one, I don't have their numbers yet. But that one is slightly green.

Um Lumentum is another big one today in the optic space. And wow, that's down five. That's down five. Um I don't have the numbers on that. I do have the numbers on Lumen, which is different. Oh. No, no, this isn't. Down 7%. Okay, never mind, I have the numbers. Okay, so EPS Wow. Uh negative 47 cents versus negative 1%.

They missed by 400% on EPS. Uh revenue they beat by 2%, but it's down 9% year-over-year. EPS is down 261% year-over-year. Stock's down seven. Now, this stock has had a crazy run. So, one could easily say it was priced in. I don't think Uh I think that is Lumen. That is not Lumentum. Yeah, Lumentum looks like it beat uh EPS by 4% and slightly missed on revenue.

Okay, so the ticker for Lumens then is LUMN. LUMN. Okay, that's the difference. Okay, so there you go. LUMN, that one's actually up even though they had a crappy earnings. So, Lumens up 5.8. Uh Tanner, can you say the Lumens numbers again? Yeah, uh Lumens expectation for EPS was $2.27. They got $2.37, so beat by 4% and EPS is up 316% year-over-year.

Revenue was expected at 810 million. They got 808 million, so you know, marginal miss, but revenue is still up 90% year-over-year or even 21% quarter-over-quarter. So, huge huge growth on Lumens, but the stock is down 4%. Yeah, and it seems like the stock is down just cuz it ran up a lot going into the print, like almost 40% for the month, so

Yeah, or people are looking at Lumens numbers. Yeah. Or maybe that. Or maybe that. AMD's in 10 minutes, guys. AMD's in 10 minutes, don't have that yet. Uh but look, if you're bullish optics, which you kind of have to be as that's the new sector that's breaking out, I mean, Lumens, Lumens and Coherent are at the top of the totem pole for it.

Pretty good beat on the board, right? And then guidance for it like came in pretty high as well, almost a I think a billion dollars on the top end, which would be another crazy growth sequentially and year-over-year. Yeah. It's crazy. Okay. Coherent is also down two with Lumens. Next one is Arista. Missed by 1% on EPS, 80 cents versus 81 cents expected.

Revenue, they beat by 3%, 2.7 versus 2.6. Arista's down 6%. EPS up 23%, revenue up 35% year-over-year. Again, a lot of these names that might go down, uh they were up a lot. Arista was up 27% year-to-date over the past month. It was up 40 35%, so Astera Labs is out, apparently. It's up 4%. Double beat.

Oh, TransMedics down 12.6% right now. 13%. Astera beat by 13% on EPS, 61 versus 54. Revenue 308 versus 292. That's a very healthy double beat. EPS up 85% year-over-year. Revenue up 93% year-over-year. A lab up 4%. TMDX is down. To be honest, TMDX is a very interesting company with organ transplants, but if if Microsoft can't catch a bid because they're not inside of the AI supply chain, I don't know if organ transplants are going to catch a bid right now.

Navitas is down 8% right now. Oh. Uh down 6. SMCI, they beat by 34% on EPS. 84 versus 62. Revenue, they missed by 18%. 10 versus 12 billion. That stock I don't see it really down. I mean, it's down at 30 cents. Uh revenue still up 123% year-over-year. EPS is up 171%. For some context, they just did 10 billion in revenue.

Their market cap is 16 billion. So, a lot of that demand, especially from investors, has shifted to Dell, which is one of the biggest competitors. But, SMCI not getting the pump here. Yeah, I I one of those numbers is the gross margins for that company continues to go down. I haven't seen it, but I I I know that's one thing investors tend to uh look into.

I mean, and how how does revenue always miss by such a large margin? It's like a $2 billion miss. It's insane. Yeah. They They always over promise, and you're right. Seems like they always over promise, and then they're like, "Don't worry. We'll put it next guidance." The next guidance, they're like, "Ah, we'll we'll promise for next guidance." Yeah.

Well, at one point they were under promising and over delivering in like early 2024. So, yeah, that has completely shifted to your point, Jose. Was it before the accounting scandals or after? Which one was It was probably before. This might be the greatest earnings beat of all time. Joby beat on earnings revenue by 20%.

Expectations for earnings was $20 million. They got $24 million, and this is up from $0 in revenue year-over-year. Um and EPS beat by 43%. They got negative of 12 cents versus negative 21. So, just getting started. Lucid missed by 23% on EPS. EPS is down 41% year-over-year, negative 280 versus negative 230.

Revenue they missed by 21% 282 versus 385. Lucid stock is down 1% again. Uh did you check Upstart? Upstart missed EPS by 158%. Oh my goodness. They beat on revenue and they're down 10%. So, this is AI underwriting for loans. Yeah. I guess it's not going well. And SoFi is flat after hours. I I'm honestly not sure cuz their originations have skyrocketed and EPS can be a little bit like if if this is some sort of gap metric, like they did beat on on revenue.

So, who knows if this is some sort of tax thing or something like I don't know how they missed that EPS number so so bad. Alster's down eight. I honestly have no idea what this company does. I like heard about it 2 days ago. Lidar something something. Uh Jose, do do you both is it part of the semi stack or not really?

If it is, I haven't followed this one. I don't I don't know as much about it. Okay, Alster's down eight. I'll try to get the numbers. A net's down nine now. A net getting hit. SMCI pivoted. The stock price maybe not pivoted the company but 7% that flipped. Um Navitas they beat by 20% on EPS -4 versus -5 expected.

Revenue they beat by 5% 8.6 versus 8.18. SMCI now up 10. Navitas is it was down eight now it's down four. We have a double beat. Yeah. On Navitas. TMDX did my goodness. 16% Yeah with Upstart I'm looking at the press release. I'm not seeing any comment like it's a pure net loss of 6.6 million. I've I'm not seeing like a little asterisk that explains one-time impact.

Yeah adjusted margins went down to Yeah. It doesn't look good. It looks even better for SoFi if you ask me but I don't make the rules. Arista Networks 87 versus 81 on EPS that's a beat by 8% up 31% year-over-year revenue 2.7 versus 2.6 that's a beat by 3% year-over-year up 3.5. A net is still down and A lab is up.

So A lab the opposite. But both with I believe a double beat here. So some of these names that are double beating again it's just like either they ran too much or the initial reaction is negative. Uh or they're just in the wrong sector like TMDX they could have done a gazillion dollars of revenue. Organ transplants is not what people are excited about right now unfortunately.

The it seems like there was a semiconductor equipment onto the reported earnings today too the stock is down about 5%. I was seeing on chat. I don't know if that one you have on the list. Uh if you have the ticker, let me know. Navitas, are we flipping? Navitas just flipped, went from down eight to up two.

Alteryx is down 16. 2463, market cap is 1.82 billion, so this is one of the smaller companies. I don't have the Dave numbers, but Dave is up 1.7. SMCI, getting a move right here, 12%. Again, they have the China GPU smuggling thing. I don't know how much that has been discounted into the stock, but definitely bottomed around 19 a couple weeks ago.

Uh and maybe they're just too important in the AI shortage that we have for that to be an issue for them. Devon Energy, 109 versus 104, missed by 5%, 3.95 billion versus 3.8 billion, missed by 4%. I'm really surprised that Lumentum. Uh I guess it just maybe ran too much. But these numbers look extremely good.

Guidance beat, EPS beat, gross margins beat, and revenue came slightly slightly ahead if not in line. You know what I think could happen to Lumentum? I think it could pull a SanDisk. Where Dude. Right? Like Yeah. Yeah. The stock pumped so much. It's literally at the same price, too, that I mean ironically, but the stock pumped so much that it had to take a breather on earnings, but the earnings were good enough for it to get bought up pretty quickly.

SanDisk is up like 40% for 5 seconds. Yeah, for 45 seconds, basically. Yeah. Yeah, like like SanDisk is up like 40% or something like this since it bottomed during earnings. You could have bought SanDisk down 5% under $1,000 while the numbers were being reported and be up 40% 2 days later. Unbelievable.

Unfreakinglievable. SMCI, I this is a big retail stock, so I'm actually happy we're getting a move here cuz people have been waiting for this one to at least give them a pump even if they wanted to exit. And it's just been stuck for so long. So, 16% move. I mean, the earnings were they missed on revenue, but the EPS beat was pretty good.

And one could argue this thing was $120 last year. So, obviously it's been beaten up pretty badly. Stock getting some love right here. 17% I don't have Big Bear AI numbers. Is that stock moving? That stock is down. or flat. Okay, one more minute. AMD, final comments in the chat. Pump or dump? Put it in the chat.

What do you think? What do you think? What do you think? We will get the numbers as soon as we can. We should be getting it literally in 30 seconds. And then we will get into the AMD coverage. I don't know why I'm a little nervous. I don't even have any shares of AMD, but I'm just This is a big one.

This is indeed a big one. For SMCI, I assume it's because gross margins were a bit better this quarter compared to last quarter and same quarter last year as well. So, it's 9.9% gross margin. Um non-GAAP 10.1 compared to 9.7 same quarter last year. So, I guess that's what the market is is liking. Cuz yes, it's a very low margin business compared to all the other players in the uh semi {slash} AI space.

Mhm. AMD initial reaction is down 3.6. Let's see if that holds. 3% candles can flip pretty easily. It's trying to flip. I don't have the numbers. I'm just looking at the candle. Now it's at four. It's harder to flip when you get down to that 5-7% red, but it's easier at three to four. Let's see. Can we flip?

Down 2.7. It's trying. AMD, they beat by 6% on EPS. 137 versus 129. They beat by 3% on revenue. 10.2 billion versus 9.92, 137 versus 129, EPS up 43%, revenue up 38% year over year. So, obviously not an Intel type of beat, which is why I think the initial reaction is red. I don't think it has to stay red, but this was not the type of massive massive massive massive earnings beat that I think some people might have expected.

Gross margins, they're expecting for next quarter 56 versus 55.3. So, that is up 0.7 against expectations. Guidance is crazy for next quarter. Next quarter they expect 11.2 plus or minus $300 million. I forget what the Wall Street was expecting, but that's another sequential quarter. I think this is now going to be four sequential quarters of of growth.

Whereas that's not really typical here for AMD. Stop down 4. Really quick, TransMedics is now down 21%. So, I think the more people are finding out about this name, the more they hate it. Uh real quick before we keep going with AMD, Big Bear AI missed by 50% on EPS. 12 cents versus 8 cents expected on the negative side.

They beat by 2% on revenue, 34.4 versus 33. 6. Okay, let's read a little bit of what Lisa Su had to say. "We delivered an outstanding first quarter driven by accelerated demand for AI infrastructure with data center now the primary driver of our revenue and earnings growth. We are seeing strong momentum as inferencing and agentic AI drive increased demand for high-performance CPUs and accelerators.

Looking ahead, we expect server growth to accelerate meaningfully as we scale supply to meet demand. Customer engagement around MI450 series and Helios is strengthening with leading customer forecast exceeding our initial expectations and growing pipeline of large-scale deployments providing us with increasing visibility into our growth trajectory.

Revenue 38% year over year, gross profit 45%, gross margins up 3%, OpEx 34%, net income up 95%. They did 795 million last year, they did 1.38 billion of profit. EPS up 91% as well. Um The guide, as Jose said, approximately 11.2 billion plus or minus 300 million. The midpoint of the revenue range represents year-over-year growth of 46% up from 38%.

Gross margins at 56. AMD's coming back. It's about to go green. Are we about to go green? Yeah, we're green. We're green. Let's see if this can make a line. Wow. Let's see if this can This is what earnings do, right? They just play with your emotions here. I mean, I thought that one line you mentioned was pretty good with leading customers forecast exceeding our initial expectations.

Uh so, is that saying that they're getting more customers, top players for their Helios rack orders, main customers just going to order a lot more? Um which whichever, both are pretty good, but hopefully they're indicating more customers are coming to them for the Helios system. If it is their main customers, maybe it's Meta and Open AI, you know?

They have a They have a 10% equity stake waiting for them at 1 cent a share when AMD gets to a trillion-dollar market cap. Maybe they're incentivized to spend more with AMD. Their Their data center segment grew by 57%. Isn't that a huge acceleration on the data center side? Yes. Yeah, and and and you still don't have the MI450, right?

So, it's still pretty much mainly CPU driven. Yeah. AMD up 1.5. Amazon just released their 13F. They sold all of their IONQ, and they bought more Marvell. They sold all of their IONQ. They bought more Marvell. Marvell is up a little bit after hours. IONQ is down a little bit. AMD now plus two. Wow. That's a new all-time high, by the way, three 64.

Yeah. Yeah, 362.79 was the previous. I mean, dude, not a lot of stocks easily can go down five and recover. I mean, it's tough on earnings. The fact that it's doing it is very impressive. And there's something the street likes in these numbers, even if it's not a massive EPS and revenue beat. Let's get a little bit more coverage here on AMD.

Let's got the numbers, Christina. Beat on the top and bottom line for Q1. So, EPS $1.37 adjusted on revenues of 10.3 billion. So, both of those are a beat. For the data center revenue in particular, because that is a huge driver, that came in at 5.8 billion higher than estimates, also a record for the company.

This They're saying it's driven by their CPUs, as well as the ramp of their GPUs. Uh specifically for gross margins, perhaps that added to the initial dip that we saw in the stock. Gross margins for the quarter came in at 55%. So, a little light than what the the street was anticipating. And then now for the Q2 guide, so Q2 revenue guide of 11.2 billion, that midpoint is higher than what the street wanted.

Uh same thing for their gross margins at 56%. So, just 1% higher, so perhaps that's the reason why the stock's not jumping as much. And then just one line from the the CEO in the press release, they're seeing strong momentum as adaptive AI drives increasing demand for CPUs, something we heard from Intel, we'll probably hear from Arm tomorrow.

And then looking ahead, we expect server growth to accelerate meaningfully as we scale uh supply to meet demand. So, the market is I guess parsing over these words, and I'll come back with any more comments that are on the investor relations site, guys. Um Jose, what are you thinking? Are you happy with the quarter?

I Yeah, I think so. I mean, uh I'm just I want to hear more clarity from Lisa Su more on that CPU shortage, right? Uh and and how that's going. We saw the improvement on gross margins. Is that because of the CPU shortage were they able to increase average selling price on on their cores? And if so, um how long can that average selling price increase last?

Uh or is it something else? Is it something outside of average selling price? I would love to see gross margins. Um we'd love to hear um Well, what what they're guiding for. Lisa Su is is known, like I mentioned, to be conservative. So, for her to give us another strong quarter, I think this is probably one of the strongest guide she she's given us in a while.

Um so so for her to give us a strong guide, I think we're going to beat even this number that she gave us. But we'd love to hear what's kind of included in this. Obviously, we'd love to hear what's the memory price happening. Um how is that impacting uh a lot of their supply? How's it impacting the consumer space, the data center side?

Uh but overall, obviously, stock price is is going whatever direction. But I'm I'm happy as an investor right now. Momentum also making a comeback. It was down seven. Yeah, seemed kind of obvious that one might rebound. AMD up three. Neil, same question to you. Is Is this quarter you're you're happy with?

I am happy with the quarter. I do have some questions on the client business. I was expecting maybe a little bit more, but seems like data center is is is growing quite nicely, 57% growth year-over-year. Just an FYI, it's now a $5.7 billion business. AMD told us last year that they expect the data center business to grow at a compound annual growth rate of greater than 60% with a clear path to over $100 billion in annual data center revenue.

So, annual data center revenue, that's $25 billion a quarter, which is 4.something x what we have right now. Just in case someone was wondering how how much higher we can go. Uh we we can go and we have to go much much higher in order to reach their own guidance. And like we said, Lisa Su is not the one to put out guidance out there if she doesn't think she will achieve it.

Uh Neil, quick question. You mentioned client. What what what what what surprised you about the client again? So, client revenue is up 25% year-over-year. Last quarter was 30 3.9, two quarters ago 46.2. So, I was maybe thinking that it would be a bit stronger based on the whole momentum of the client side of the business that I was expecting since Intel reported.

Yeah. The what what do you remember what Intel reported? Just I'm just wondering cuz I know Lisa Su um during last guidance mentioned that uh um she was expecting weakness in the client side mainly because of the um of kind of things like the memory prices. Uh so, Intel was 7. Client Computing Group was 7.72 billion dollars, which is still their biggest segment, by the way.

But that was only up 1.28% but I assume that AMD being in a much better position is going to grow. But it's okay, fine. It's still over 20% growth, so AMD's over 370. And as for the information, Anthropic commits to spend 200 billion on Google Cloud and Google trying to go for 400. After hours, AMD 371.

That is a new 373. It hit 5% on AMD. Uh Goog's is, I believe, closing in on Nvidia now with market What did I say last week? Uh-huh. If not If not has overtaken them. They definitely definitely overtaking them in the after hours. Google in the after hours is the biggest company in the world. Nvidia has got to be down if Google's

Google you Google. Nvidia is flat. Google's 2% yeah, that is 850 * 12.5 billion shares outstanding. I mean that is 102 billion they just added in market cap. They're at 4.81 trillion. Nvidia closed at 4.7. Yeah, Google just became the world's most largest company. Yeah. I didn't want to trust my math on that, eh?

You had uh Dude, I don't trust Canadians. What did I tell you? Maybe I was doing that metric math or whatever. That's a communist math, bro. What am I supposed AMD 375 375 I mean I kind of think this Anthropic news is also helping AMD just more spend. Yeah. Right? Yeah. It just goes back to the to the amount of AI infrastructure that we need and Anthropic's not going to be the sole winner here, right?

There's going to be a bunch of customers that win and those customers are AMD's customers. But just to go back to what Jose said about the the guidance um Q2's guidance estimate was 10.5 billion. That's what Wall Street wanted to see and now AMD is putting up 11.2 plus or minus 300. So even if it's minus 300, which it most likely will not be, it's still more bullish than where Wall Street was and then the adjusted gross margin on that 11.2 billion was also higher at 56% versus 55 expected.

And the other thing Tanner is I would have expected such a massive beat on this quarter because on quarter two cuz the AI chip that hit the MI450 doesn't come out till quarter three and quarter four. So it's like what's driving this this this growth for this quarter two? Um so so we're left to are are they pulling the I don't think they'll be pulling the MI 450 or I mean it seems to be just mainly that that CPU shortage that's helping them kind of beat Wall Street expectations.

Uh this is pretty freaking incredible. Google is is very uh close to three There it is, 397. Uh you got AMD 6% now 375. As we start to see a lot more of an upside move. SMCI also was down seven. Now that's up 19. Lumentum still down two. Marvell's up one because Google TPUs is good for them. Navitas was down more, now it's down two.

TMDX still down 18. Lucid down two. Joby's up two. Coherent's down two. Is Broadcom up? Broadcom should be up cuz of Google, right? Broadcom is up three. Yep. Yeah. I I I am curious though. I Is this additive news or is this that someone just did the math of like, "Hey, all this multi-gigawatts, this is what's going to equate to." Right?

So, I I I wonder if if this is new news story or just somebody finally did the math of like, "What these massive gigawatts of of rent is going to equate within the next 5 to 10 years?" Well, even if it's sort of aggregate math, if the spend is still going to be there, then I guess that's just what the street cares about, right?

Um Intel also getting the pump. Arm probably should be getting a move, too. Arm Yep, Arm up three. Nvidia I mean, it's up a little bit, but not really. Google up almost to 400, 398.40. And AMD's going for 380 here. Yeah, I think this Anthropic news couldn't have been better timed because that much amount of spend, even if it's just towards Google, all the different vendors and distributors that are going to be part of that stack.

We I I think we've gotten used to these big numbers, but this is a huge number. 200 billion over 5 years is essentially $40 a year, $10 a quarter. Like this is On one customer. They have other, right? They have Anthropic has AWS and Microsoft. So on one customer, that's wow. Right, but for for Google, that's so additive.

That that They essentially just added a YouTube. Like YouTube does about $10 revenue a quarter. That's true. True. Yeah. That is mind-blowing. What is it half their half the backlog? A bit close to it. Yeah, but but the backlog, I don't think it's 5 years long. But yeah, it's half the backlog. Uh lovely stuff.

Okay, so if you Jose, if you had to isolate one reason you think AMD is getting the pump, is it is it the guide? Is that the the reason you would isolate for? I I I would say yeah, like I mentioned the guide was strong even though we don't have a AI chip just yet. So I think the guide implicates that the CPU shortage is probably a lot stronger than than what we probably initially initially thought.

Okay. Can someone calculate the new PE on AMD at 377? And what is that looking like and the forward? And factor in the LTM, the new LTM. Yeah. Let's Let's see if we can get some multiples on that. analysts were expecting for next quarter 10.5 billion dollars for AMD. I I know what Jose is doing. I get it now.

What is he drinking? No, you just don't listen. Go ahead. Say say what I said. Hey, go ahead. You know, finish it. it. I thought Neil was supposed to be nice, Tanner. What was that? No, cuz I I was doing a stream with Neil recently or or with Jose and he's like he's like Neil always does this. He doesn't he doesn't listen to other people.

This guy. So he repeats the same thing is what you're saying. Neil, you were in that stream with us. I did a year or so of streams with Jose and this is exactly what the guy did every single stream to me. Like I say something, 2 seconds later he's like, "Huh, I wonder if I'm like, are you serious?" Okay, what were you going to say?

What's your what's your point? No, I'm I'm just looking at the at the upcoming quarters for AMD and looking at the analyst estimates for the upcoming quarters and it seems like they they just are well below what AMD is going to report. Like yes, for next quarter, but even the ones after that it seems seems a bit strange that it is this low.

Okay, people are saying 130 times is what AMD trades at now. on these things. Google touched 399.30 in the after hours. It's coming down a little bit, but we almost broke 400. 395 Micron's up, SanDisk is up. They're both running. Like it this is insanity. Micron call Gene Munster and Brad Gerstner and ask them what they think about Google that it's the number one company now.

But the 10 blue links. It is kind of crazy, dude, that people thought that would be the I mean, I don't think people saw the TPU shift, but the search business itself accelerated, so you couldn't couldn't even get it. when we had when everyone was talking about search and ChatGPT, it's as if nobody wanted to talk about the cloud business.

As if that business did not exist at all. And and that to me and I I spoke with it with Jose and he repeated the same thing afterwards, of course. It it didn't make any sense. Didn't make any sense. Okay, so let's have this conversation. We got 30 minutes until the call. Jose, how do you explain Nvidia getting no love?

No love. But and every other semiconductor company it seems like it's quite literally going to the moon. Well, I mean, I think the easiest thing is Nvidia started the story, right? It's none of these companies would have had wouldn't be there if Nvidia didn't start the AI story, right? So, Nvidia has had the sequential growth since what, 2023?

2020 I forget what the actual year was when they started to see the sequential growth. And I think right now the market is thinking that it's over for Nvidia. Like that growth is not going to continue. But next quarter we're expected to grow 70%. What I forget what it is, Tanish. 76, 68, some crazy number on a year-over-year basis though.

So, I think the market still sleeps on Nvidia even though they're they're the pros at what they do, but now the AI story is shifting over to all these AI companies as well. It's not just Nvidia's world anymore. It's Nvidia and and and all these other companies. Yeah, someone said Nvidia's been flat for 2 years.

I mean, just on the last year they're still up 76% like Jose said. So, that's not true. But um It I It is crazy that Nvidia is not seeing any of this pump. But as we saw very recently, whenever that pump comes, it comes very quickly. Like um What do you mean? week we were sort of sitting at, you know, $200 and then in a 2-day period went up to 216.

Yeah, but then it went away. Yeah, this time around. But how do you know that like Last Last time it went from 200 to 170 after their earnings. No, no, but what I'm saying is before the we were hanging out in that 100 area not long ago. Like like we were covering Nvidia earnings back whenever we were breaking 100 and then falling below 100 around deep seek.

Now we're sitting and breaking above and below 200. You know? Maybe soon we'll be breaking above and below and talking about how it's not moving at 300. I mean, that's fair. I just think the difference between now and then is everything is kind of going vertical and Nvidia's not. And my answer would be pretty simple.

It's a $5 trillion company. Like it's kind of tough for it to go to $7 trillion that easily. Whereas it's easier for Micron to go from $400 billion to $700 billion, right? Um do you guys agree with that? Do you think it's market cap related or do you think that's uh a BS excuse and it should still be moving higher?

I mean, I think the math definitely works on that, right? You It's It's a lot harder to move a $5 trillion company. Um but I I also do think it's the market's sleeping on it. I think the world is just I I don't know. I think we we we still don't understand how crazy AI is going to be. It's like either either one company wins or another company wins.

And in reality, what I see, so it's not reality, Jose's reality, what he I see is um it's going to be a multiple winner company, right? We're going to see AMD win. We're going to see Anthropic win. We're going to see Google win. We're going to see Nvidia win. So all these players are going to be winning in this AI in this AI race.

Where we stand right now. Obviously, in a cycle-based company that can change later on, but where we're at in the cycle, I think we get multiple winners. Yeah, I For all those saying, what about or just real quick, for all those saying, what about Google? Google has not been holding for $4.5 trillion.

It's been getting there, right? Nvidia's been holding it basically since September of last year. No, but I think, you know, people say it's hard to move a four billion or four trillion dollar business. Like Google's having no no problems finding gains on on new stories. But I I I also wonder how how hard is it to be that first one to move, right?

Like how hard is it to go from a hundred billion to one trillion and then how how fast can the second and third company do it for like one trillion or five trillion? Is it harder for the first player to do and it becomes easier for the other companies because then investors mindset or psychology is like, "Oh wait, five trillion dollars isn't the top, right?" It can still go here from there.

So I wonder if there's some some psychological um mindset that goes on to being the big player. Apple was the first company to break one, two, and three trillion dollars and Nvidia was the first company to do four and five and they did it in the exact same year. Um Nvidia did four and five in the same year.

It I don't know if that's the thing that's holding them back or not. Uh like like you said, we had a conversation earlier and it's like the market is not even thinking about LPX or and like like the the the Grok chips or any of these things. I don't think they're thinking about standalone CPUs. They're Uh uh obviously I feel like Jensen's coming out and he's talking about uh AI in general and then he's talking about uh why it's not a scary thing or why people are going to continue to have their jobs.

He just had a a great interview with Becky Quick, but um I think while he's doing that you have a bunch of these press releases specifically talking about large customer orders and I feel like we don't see nearly as many press releases regarding Nvidia and the large deals that they're signing even though the numbers on Nvidia dwarf all the competition.

Like even the numbers that the the top and bottom line numbers that Google puts up versus Nvidia is a joke. And I'm a shareholder of both. Like I love them both, but it's crazy that uh Google's now the biggest company. They don't even grow remotely in the same league. Yeah, so Go ahead, Neil. Go ahead.

Go ahead. You know, I I I think it's because 1 year ago Google was at 150, 140. It was hated. It it was literally a very very hated name. And now, well, not now, for the past couple of quarters, they have basically flipped the switch. Now, Google did trade around $300 for quite a while, actually. Like around 300, 310, just below it since November, I think.

So, it did take it a while until uh it stabilized and went and then went back up. But, the big difference is that 2025, Google was $150, completely hated, misunderstood. And now, they're just crushing it. Every single segment is growing. The cloud business is exploding. And the market is now playing catch-up.

And it's the whole TPU ASICs ecosystem that is catching a bit. Nvidia, which is growing at 73% year-over-year, $68 billion a quarter. And guiding for for accelerated growth. Correct. Uh close to 80 billion. Mhm. Um The market doesn't care. That the market doesn't seem to care because Nvidia is a known No, cuz Nvidia is Oh, we know Nvidia is is a huge player.

We know Nvidia is super profitable. But, like you said, Nvidia doesn't put out, "Oh, we are just increasing our backlog by 200 billion because we have a partnership with company XYZ." They don't they don't care. Like, Jensen literally doesn't care. He knows what he's doing. Like, he knows he controls the whole stack right now.

He knows that yes, TPUs are there, but he explains it time and time again. If you look at the Nvidia ecosystem, if you look at the the CUDA ecosystem, it is the one that's worldwide. It is the one that will continue to grow. And he doesn't give a like, he he he literally doesn't care. Like, he knows in what position Thank you.

Thank you, Ben. No problem. I got you. He He doesn't care what the market what the market thinks right now. So, yes, we are going to be trading Previously, it was around 170, 175 for 7 months. Now, we're making our way around $200 per share, trading at low 20 forward PEs, growing close to 80%. He doesn't care.

Like, he's out there. He he's making sure that his business would just continue to grow and grow and grow. And yes, maybe it is difficult to move a previously $5 trillion number one company, now number two. Um but yeah. After I was done counting. But uh and I mean I think the secret sauce for stocks to go up is for it to be hated for a while.

So, people keep hating on Nvidia for a while. I will be very thankful um in the next few quarters, hopefully. Um but it it it I think the market also forgets that didn't Jensen just add a GTC give us I even I forgot. Didn't he give us an updated number on what uh just Blackwell and Vera Rubin's going to be?

Was it Is it 1 trillion? I don't know. Do you remember? Yeah, you know I remember. And it's like like 1 trillion within two generations. I don't think that was including Vera Rubin ultra. To be fair, Jose, the street had already thought they were going to do 978 billion. So, the 22 billion increase was not that exciting.

It was That was only for their existing generations, not new ones, not standalone CPUs, not Jensen did not say 1.5. He said 20 billion, which they make in a couple days above the I and I agree, that's amazing. saying imagine if Karp came out and said, "This is what our government revenue is going to be." and then saying, "Well, Wall Street already expected the entire company's revenue to be this." equal to the just the government revenue.

Who cares? The You're still expecting some level of commercial growth. You're going to have to put some brains. of CPU Vera Rubin We are talking about why the stock has been flat. And I obviously, stocks go up or down many times based on the perception of what the market has priced in. If the market priced in $978 billion by what, 2029 or whatever the num estimate was by Jensen and he says a trillion.

Like Intel, the market expected 1 cent. They came out with 29 cents, which is why the stock moved. Like I agree with you guys, but if the guide is a couple tens of billions higher than what was expected, maybe you know, with Google this TPU business kind of came out of nowhere. I don't think people expected it, which is what added this extra trillion.

I guess the question is what can Nvidia do outside of keep executing that gives the street something to latch onto that they didn't know about, which is not questioning Nvidia's mode or CUDA or anything, but what's the new thing that the street needs to be excited about? Well, I I think like Tim mentioned, I mean maybe they just need to give us like the actual CPU stand-alone numbers.

Like hey, if they come out and say CPU is going to be X billion dollars within the next 2 years, that could help or just the LPX, right? The the LPU added if they they mentioned this 20 per 25% opportunity from what they they get. But and and and and like um Fandango here says uh robot something, but I I mean I I think they still have so many products inside of their um product line that most customers and probably even most analysts don't even follow that much.

If they were to just give us those numbers, I think it could uh create a um a great reaction on the stock. Dude, Brad Freeman shared this online. This has got to be one of the funniest How is Anthropic going to tell everyone how they're going to fund yet another massive cloud deal with Google? Half cash, half stock.

That is so good. the amount of memes on half cash, half stock. Were you guys able to finish the the the that interview? I couldn't pass after like like a minute. It was like uh No, he he he did a big press uh tour today and was way more normal. I think he really I didn't I I didn't know it thought it to be viral.

Did you see any of the new stuff he said today? Did he explain? Uh no, no. I I He was on TBPN and he was on Fox. Um I've only seen a small clip on it and I it was just right before we went live, but his cadence was like he sounded like a human being. Yeah. I still I still can't believe that TBPN got acquired by Open AI.

I Yeah. By the way, did you guys So, everyone knows Coinbase laid off 14% of people, but did you guys read Brian Armstrong's letter? Because he said this quote non- non-technical teams are now shipping production code. Non-technical people at the company are vibe coding well enough to get code into production on a $50 billion company.

I mean, yeah, it's obvious why they're firing some people. So, this has got to be bullish AMD, Nvidia, the whole semi stack, right? Because it's more compute, but man, it's kind of crazy that it's actually happening right now. The janitors on their downtime are putting in commitments to the codebase.

TMDX is down 30%. Dude, this is a company a lot of people like. Like, I know a few people that really love the valuation on this, the growth potential. I remember there was an old scandal with them that they were flying around influencers in the planes that were supposed to be transporting organs. I don't know if you remember that.

They were flying influencers? In Yeah, that were going to like their events and stuff in the same planes that were also transporting organs. It was Yeah, but I don't know if that's was or not. I don't know if it's true either. It was a rumor. Allegedly. I don't want to get sued by an organ transplanting company.

Fender made all those accusations. None of us did. I've got a series of uh bot accounts that are I've got shorts on TMDX. No, I don't. Um Okay, so what are people thinking about these AMD earnings? I mean, if you're a shareholder is this what you wanted? Obviously, Neil and Jose have been the longest on this panel in AMD.

Seems like they're pretty happy with the guide. Which was important. Were they on spirit? Yeah, but I think someone commented that the the actual conspiracy It's not that that would be saving money. I think it was like against the law to be doing that with like it it was against some regulation or whatever.

Zenbot says I work in sales and I vibe code at work. We all use Claude. The question here I have to you is what do you vibe code? Sales, dude. It's He said it. It's proprietary info. Yeah, but I'm in good sales. Okay, someone says, "Please invite someone who will tell us that the semis craze going to be over soon." So, we have 15 minutes.

Let's have this conversation before we get into AMD. Um Jose the memory names are going absolutely crazy. Uh I would say those are kind of the leaders of this kind of AI supply chain stack. I don't think anyone wants the semis craze to be over cuz technically that's the end of this bull market at least for now.

If the semis let go of their leadership cuz they are what's keeping this bull market alive, I would imagine. But obviously, there are names that are feeling overextended and people have a lot of FOMO. I guess Jose, how would you deal with uh seeing a lot of these names run and potentially not being in them?

I I mean, I'm not going to lie. It's the market gives us opportunities. There's times just a few months ago a lot of these stocks um were down um massively, right? So, so it's like um, take that opportunity to learn if you're getting FOMO right now to buy when the market really hates the stocks that you like.

Um, now, do I think the semi craze is over? Uh, obviously I'm a semiconductor bull, but no, I mean based just on on the amount of spending that we're expected to get on AI. And AI is at a place right now where if you don't keep running with it, somebody else is going to. So, so that it's like we can't stop this technology from moving.

And like like we can't stop it because if we're not doing it, if Google's not doing it, Open AI is going to be doing it. If Open AI is not doing it, Dropbox is going to do it. So, it's just a race of who gets to AGI first. That's where we're at right now. It could take two, three years, four, five, whatever.

Um, but the rate of innovation is going to continue. So, where we stand um, I I I wouldn't be buying semiconductor much semiconductor stocks right now, but I wouldn't be trimming a lot either. I think this run is going to last a while, and I'm happy to be uh, part of it. So, AI craze is going to continue in my opinion.

Jose just lost a ton of subscribers. Just told his semiconductor audience to not buy semi stocks. What the chip just happened? All right, we got to plug it. That is Jose's newsletter. Please make sure you subscribe. Because uh, that'll keep you up to date. But Jose, you you don't think it's Do you think SMH of 40% year-to-date is extended?

Or do you do you think it's toppy for now? Or you think this is just the inevitability of all the spend at the end of the day? I mean I I mean I think I don't When I mean don't buy, it's not that I believe stocks aren't going to go up, but when I look at stocks or or an investment, I look at a risk-to-reward ratio, right?

Is Is how much is priced in? It doesn't mean everything is priced in, but it's like 60 to 70 priced in. And if like 60 to 70% is priced in, am I really willing to buy like that other 30% priced in? like like that to me doesn't the risk reward ratio doesn't go in my favor, right? With companies that were hated.

I mean, I I most of you guys own Google here, right? Google with that 150 was like all right, it's the risk to reward ratio. I'm pretty sure if you look at it, it's like, oh, where are we? The The risk is so low and the reward is still so high if the thesis plays out. So, with a lot of these names, I think even if it is not all priced in, to me 50%, 60% is priced in at least right now.

Um obviously, that can change if things we get a little bit more updates. If if robotics ends up speeding or or going faster than expected, I think that can change the the whole ecosystem even more or new technology. So, there's variables that can change that risk to reward ratio. But where I see it right now, some of these most of these names in the semiconductor, the risk to reward ratio is not in my favor.

I think like Max Evans are the ones. But luckily, the market always finds some bearish thesis. Uh I I think just in March 30th, we had like crazy stocks. Astera Labs was below 100. Credo was less than 100, right? Nevious was less than 100. Corvil was less than 100. So, that that was like what, 2 months ago?

The market gives us those opportunities. Uh so, if you're playing out this thesis, to me it's like right now Max 7, but there's going to be a time within the next 3 to 6 months where we can go, oh, look, the risk to reward ratio is back in my favor on high beta names. Let me go back to those high beta names.

So, so to summarize, you think semis are overbought, but you think the risk to reward will get better if they take a breather and that's when people should take advantage of them, not at all-time highs. Basically. Yeah. Yes. Yes. So, risk to reward ratio is is not there for buying, but still not there for me for trimming, right?

Because there's still that opportunity, that gap. So, for the gap on holdings, it's fine because I I that's what I I originally bought them for, right? To kind of get that full potential. But to put that new money in, it doesn't it it match where I want to have my entry entry price point. And and like you mentioned, innovations in technology I I I believe can shift over time, but that's something you have to keep understanding what's moving within this technology.

Basically, we'd rather buy Meta at 600 bucks. Yeah, it it's it's so crazy, right? Cuz it does feel like the the run is overextending, but you also have to match it with okay, well, if there's now going to be these tools that automate themselves, can can start making decisions, can uh help oversee other parts of the business, it's like how much growth is there like at Elon says, like, how much growth per capita can you have if you take out the per capita?

You know, so um I don't know. Like we could be in still an early stage in this build-out, but because some of these names have run so much, it's just insane to watch. It's insane to see uh how much pricing power memory has right now. And watch it go from, you know, $1,000 for SanDisk up to 1,400 in 3 days.

But maybe, you know, SanDisk and Micron at like five times forward PE was just way too low. It's a It's crazy space. Sorry. No, no. Uh Micron CEO, I mean, said that I don't know when, today or yesterday, he said we can only support 50 to 2/3% of customer demands currently. So, clearly there is still a lot of upside left.

Could we peak in 2027, but still grow, I mean, peak in the growth uh year-over-year comparison? Most likely, yes. '27 is probably the peak growth in this whole capex cycle. That doesn't mean that suddenly we're going to see so much less demand. It's still going to grow, just slower is my my read on this whole thing.

You think 2027 is peak for growth in CapEx? Yeah. When you look at year-over-year growth, I think so. In a matter of a year. I mean, you say you're already turned bullish on the whole semiconductor space, so. But if you believe that, wouldn't you think the multiple on a Micron is justified if you think CapEx stops?

It obviously doesn't stop, but it stops growing next year. No, cuz I think there is still too much demand. The backlog is just so big and the prices are going up. Like prices for CapEx most of the big tech companies last week said they're increasing CapEx because the prices have gone up. Right, right, right.

Yes, yeah. So as long as the question that you mentioned as long as they maintain pricing power, if the absolute growth stops, that's what still justifies the multiple expansion, basically. Yes, but growth will continue, just we're not going to see CapEx double year-over-year or something like that again in 2027.

I think even from a numbers perspective, I don't think it makes that much sense to double it again. So you mean you're mentioning growth So growth rate is not going to Yeah, yeah, growth rate, not the dollar amount. Yes, yes, exactly. Yeah, okay. Yeah, I agree. So I think Morgan Stanley's projecting 800 billion to a trillion of CapEx in '27, '26.

I think we're going to end up around 650 to 700 billion. So Meta is doing 135 this year, 145. Uh which is up from 70 last year, so doubled. So if that doesn't double, which would be 300 billion of CapEx in 2027, if it goes up only to, I don't know, 200 billion, which would still be a large large increase.

Uh basically the argument is that will still proliferate throughout the semiconductor ecosystem, but it will not be the type of doubling that we're seeing. And then this is a really important conversation because all the hardware beneficiaries of the hyperscaler CapEx are what's been the trade in 2027.

So, if that stops or if there's a hiccup in that conversation, you know, I think the market starts wondering exactly maybe we do buy Meta because that free cash flow starts to become more reasonable since the CapEx doesn't eat away at it. And I think also in the semiconductor space one one part that's going to be attractive is kind of like those under $10 billion companies that are going to be able to take a massive advantage of this massive CapEx growth due to the shortages, right?

Because a lot of these shortages are going to push um a lot of this CapEx to go into names that you might have never thought of before. Uh so, if if right now the two sectors that I'm really looking into are either the Mag 7s or or kind of the big players or those super small companies that can truly benefit from the shortages that I believe we're going to continue to to see for for at least the next 18 plus months.

Okay, we'll have AMD in a couple minutes. Real quick, let's get the Google Anthropic update that we talked about. Just as Gallus got that story, McKenzie. Hey, now you got Alphabet shares bouncing after hours with a market cap exceeding Nvidia at 4.8 trillion. This comes on a report that that 5-year 5 gigawatt commitment that Anthropic made to buying Google Cloud Compute.

They put a dollar amount on that, $200 billion. That would mean that the $462 billion backlog that Google reported last quarter, 40% of that is concentrated in this Anthropic cloud commitment. As part of that deal, remember Google's planning to invest 40 billion into Anthropic. Again, one of these swaps of Google's TPU in-house AI chip providing that cloud compute capacity to Anthropic.

But guys, that number that we're looking at and we're out to Google right now, they have not confirmed it, but a report saying that uh it's a $200 billion compute deal that Anthropic has signed with Google. All right, Max, thanks. Mackenzie Sigalos. Okay, we don't have AMD yet. It should be in a couple minutes, but we do have a new clip from Jensen at the ServiceNow Summit.

And uh let's see what he has to say about ServiceNow here. Uh we're talking with an application software company. You've talked about this five-layer cake with energy, chips, you know, platform and applications at the top necessary to really make AI work. Why is the application layer not just important, but long-term profitable to you, say?

Why does that need to happen and why is why is ServiceNow one to watch for you? This is one of the greatest transformations for the software industry ever. For for the first time, service is software service software is service. And the service industry is 100 times larger than the software industry.

And so now, for the very first time, you're going to have human agents that are of course managed and supported by ServiceNow, augmented with AI agents that are going to be working autonomously, working with humans, and they're all going to need identity management, access control, network control, all of the things that companies do with respect to regulation and compliance and governance, all of that has to be provisioned, whether you're human or an agent.

And in the future, of course, out at the edge, robotic systems. These all of these autonomous systems, the time has now finally come. Now, of course, for our industry, for the rest of the five-layer cake, it's completely revolutionary because AI agentic AI needs to be processed in real time. Unlike software of the past that's pre-recorded, you could put it in storage, retrieve it as you need it.

Today's software needs to be processed completely in real time. The amount of computation necessary from generative AI 2 years ago to now agentic AI, it has gone up 1,000% because the AI now has to read a lot more, use tools, reason, generate a lot of tokens. Not only that, the amount of use has gone up orders of magnitude because now for the first time AI is doing work.

It's doing useful work and the return on that investment for software companies, for agentic companies like ServiceNow, is completely accretive. And so that time has finally arrived. All right, Jensen obviously pretty bullish on software. Um the AMD call is not live yet for me. Let me see if I can pull this up.

I'll see if I can get it as well just in case it's on your side. Um I think hey. You have it? I do not. Do you have it? Yeah, it's fine. Um Going up for me. Let me see here. Yeah, I got it. Okay, cool. We refer primarily to non-GAAP financial measures during today's call. The full non-GAAP to GAAP reconciliations are available in today's press release and slides posted on our website.

Participants on today's conference call are Dr. Lisa Su, our chair and CEO, and Jean Hu, executive vice president, CFO, and treasurer. This is a live call and will be replayed via webcast on our website. Before we begin the call, I would like to note that Jean Hu will present at the Bank of America Global TMT Conference on Tuesday, June 2nd uh in San Francisco.

Today's discussion contains forward-looking statements based on current beliefs, assumptions, and expectations. Speak only as of today and as such involve risks and uncertainties that could cause actual results to differ materially from our current expectations. Please refer to our cautionary statement in our press release for more information on factors that could cause actual results to differ materially.

With that, I will hand the call over to Lisa. Thank you, Mark, and good afternoon to all those listening in today. We delivered an outstanding start to the year driven by accelerating demand for AI infrastructure across our portfolio. Growth was broad-based with every segment increasing year-over-year led by 57% data center revenue growth.

First quarter revenue increased 38% year-over-year to 10.3 billion. Earnings grew more than 40% and free cash flow more than tripled to a record 2.6 billion driven by significantly higher sales of epic CPUs, Instinct GPUs, and Ryzen processors. These results mark a clear inflection in our growth trajectory and a structural shift in our business.

Data center is now the primary driver of our revenue and earnings growth. And as AI adoption scales, demand is increasing not only for accelerators, but also for the high-performance CPUs that power and orchestrate those workloads. Turning to our segments, data center revenue increased 57% year-over-year to a record 5.8 billion, led by strong demand for our Epic CPUs and Instinct GPUs.

In server, we delivered our fourth consecutive quarter of record server CPU revenue. Revenue increased more than 50% year-over-year with sales to both cloud and enterprise customers, each growing more than 50%. Share gains accelerated year-over-year, reflecting the ramp of fifth gen Epic Turin CPUs and continued strength of fourth gen Epic processors across a wide range of workloads.

In cloud, AI was the primary driver of growth in the quarter as every major cloud provider expanded their Epic footprint to support a broad range of AI workloads, from general purpose compute and data processing to head nodes for accelerators and emerging agentic applications. Epic-powered cloud instances increased nearly 50% year-over-year to more than 1,600 with instances optimized for virtually every enterprise workload and expanded availability across the largest global cloud providers.

In enterprise, demand accelerated with record revenue and record sell-through in the quarter. We expanded our customer base with new wins across financial services, health care, industrial, and digital infrastructure companies, while also building momentum with mid-market and SMB customers. We are well positioned to continue gaining share as more enterprises standardize on Epic across on-prem and hybrid environments based on our leadership performance and TCO.

Looking ahead, our sixth gen Epic Venice processor, built on our Zen 6 architecture and 2-nanometer process technology is designed to extend our leadership across cloud, enterprise, and AI workloads. The Venice family spans a broad set of CPUs optimized for throughput, performance per watt, and performance per dollar, including Genoa, our first Epic CPU purpose-built for AI infrastructure.

Across the portfolio, Venice widens our competitive advantage, delivering substantially higher performance per socket and per watt versus competitive x86 offerings, and more than 2x throughput per socket versus leading Arm-based AI solutions. Customer demand is very strong with more customers validating and ramping platforms at this stage than with any prior Epic generation, and we remain on track to launch Venice later this year.

Looking more broadly, we are seeing a meaningful acceleration in customer demand driven by the rapid scaling of AI workloads across both cloud and enterprise. Inferencing and agentyc AI are increasing the need for server CPU compute as these workloads require additional CPU processing for orchestration, data movement, and parallel execution in addition to serving as the head nodes for GPUs and accelerators.

As a result, we are seeing both stronger near-term demand and deeper engagement with customers on long-term capacity planning. At our financial analyst day in November, we outlined a server CPU market growing at approximately 18% annually over the next 3 to 5 years. Based on the demand signals we are seeing today and the structural increase in CPU compute requirements driven by agentyc AI, we now expect the server CPU TAM to grow at greater than 35% annually, reaching over $120 billion dollars by 2030.

In response to this demand, we are working closely with our supply chain partners to meaningfully increase our wafer and back-end capacities to support this growth. As a result, we now expect server CPU revenue to grow by more than 70% year-over-year in the second quarter with robust growth continuing through the second half of 2026 and into 2027 as we ramp our next generation epic processors.

Now turning to our data center AI business, revenue grew by a significant double-digit percentage year-over-year as adoption of Instinct accelerates across cloud, enterprise, sovereign, and supercomputing customers. We're seeing strong momentum as customers move from pilots to large-scale production deployments, particularly in inference, where our leadership memory capacity and bandwidth are key advantages.

This momentum is driving deeper, long-term customer engagements, including large-scale, multi-generation deployments. A key example is our expanded strategic partnership with Meta to deploy up to 6 gigawatts of AMD Instinct GPUs spanning several product generations. Our agreement includes a custom GPU accelerator based on our MI250 architecture, co-designed to support Meta's next-generation AI workloads.

Shipments are on track to begin in the second half of the year, leveraging our Helios scale architecture, which integrates Instinct GPUs with epic Venice CPUs to deliver fully optimized high-performance AI infrastructure. Together with our previously announced Open AI partnership, these engagements position AMD as a core partner to the world's largest AI infrastructure builders with deep co-engineering relationships and multi-year visibility into large-scale deployments.

More broadly, Instinct adoption continues to expand across AI native and enterprise customers for both training and inference workloads. Existing partners are expanding Instincts across broader set of workloads, while a growing number of new partners are deploying production AI workloads on Instinct, highlighting the maturity of our hardware and software stack.

On the software front, we continue to make strong progress with ROCm, improving performance, scalability, and enabling customers to reach production faster. In our latest MLPerf results, MI355X delivered strong competitive performance across the full suite with leadership results in multiple categories.

We also expanded day-zero support for the leading open models, including the latest Google Gemma 4 family, Qwen, Kimmi, and others, enabling customers to deploy new models quickly with optimized performance. To build on this momentum, we have significantly accelerated our ROCm development cadence through increased software investments and agent-based coding workflows, enabling faster performance improvements and more rapid deployment of new capabilities.

Looking ahead, customer pull for Helios is very strong, driven by our leadership performance, memory bandwidth, and scale-out capacity. Helios development is progressing well with strong execution across silicon, software, and systems as we advance through key milestones. We have begun sampling MI450 series GPUs to lead customers and remain on track to ramp Helios production shipments in the second half of the year.

As we approach production, demand for MI450 series GPUs continues to strengthen with lead customer forecasts now exceeding our initial plans, and a growing number of new customers engaging on large-scale deployments, including additional multi-gigawatt opportunities. With this expanded visibility, we have strong and increasing confidence in our ability to deliver tens of billions of dollars in annual data center AI revenue in 2027, and to exceed our long-term growth target of greater than 80% in the coming years.

I look forward to sharing more on our next-generation Instinct GPUs, EPYC processors, Helios rack-scale platform, and our growing customer engagements at our Advancing AI event in July. Turning to client and gaming, segment revenue increased 23% year-over-year to 3.6 billion. In client, revenue grew 26% year-over-year to 2.9 billion, led by strong sales of our latest Ryzen processors, and continued share gains across consumer and commercial markets.

In desktop, we strengthened our Ryzen lineup, including our latest X3D processors that deliver leadership performance across gaming, content creation, and professional workloads. We also introduced the Ryzen AI 400 series and Ryzen AI Pro 400 series desktop CPUs, ending our AI PC offerings across both consumer and commercial systems.

In mobile, we delivered strong growth driven by a richer product mix as Ryzen 400 mobile PC shipments ramped and commercial adoption increased. Commercial was a key highlight in the quarter with sell-through of Ryzen Pro PCs increasing more than 50% year-over-year as Dell, HP, and Lenovo broadened their AMD offerings.

We also closed new enterprise wins across large technology, financial services, health care, and aerospace customers. Looking ahead, we expect demand for our Ryzen CPUs to remain solid in the second quarter. However, we are planning for second-half PC shipments to be lower due to higher memory and component costs.

Against this backdrop, we still expect our client revenue to grow year-over-year and outperform the market, driven by the strength of our Ryzen portfolio and expanding commercial adoption. In gaming, revenue increased 11% year-over-year to 720 million. Semi-custom revenue declined year-over-year, as expected at this stage of the console cycle, while engagements with customers on next-generation platforms remain strong.

In graphics, revenue increased year-over-year, led by demand for our latest-generation Radeon 9000 series GPUs. We also strengthened our Radeon portfolio with updates to our FSR software that improved performance and visual quality across a broad set of gaming workloads. Similar to the PC market, we believe that second-half demand in gaming will be impacted by higher memory and component costs, and we are planning the business accordingly.

Turning to our embedded segment, revenue increased 6% year-over-year to 873 million, driven by strength in test, measurement, and emulation, aerospace and defense, and communications, as well as increased adoption of our embedded x86 products. Design-win momentum grew by a double-digit percentage year-over-year with billions of dollars in new wins across markets, reflecting the continued expansion of our embedded business from a primarily FPGA-focused portfolio to a broader set of adaptive, embedded x86, and semi-custom solutions, significantly expanding our TAM.

Our semi-custom engagements also expanded in the quarter as data center communications and other embedded customers leverage our broad IP portfolio and high performance expertise to build differentiated solutions. In summary, our first quarter results mark a clear step up in our growth trajectory with accelerating momentum across the business.

Our client business continues to outperform the market driven by rising adoption and share gains while in embedded design win momentum and demand are strengthening across our expanded adaptive and x86 portfolio. At the same time, our data center business is inflecting with strong demand for both epic and Instinct products driving significant growth.

While we are still in the early stages of the AI infrastructure cycle, the pace and scale of deployments we are seeing today reinforce both the magnitude and durability of the opportunity ahead. As inferencing and agentic AI deployment scale, they are fundamentally increasing computer requirements driving both larger scale accelerator deployments and significantly more CPU compute.

AMD is uniquely positioned to lead in this next phase of AI with leadership products across high performance server CPUs and AI accelerators and the ability to optimize them together as fully integrated rack scale solutions. We have a world-class supply chain and are making significant investments to expand capacity and execute at scale.

With the momentum we are seeing across the business and the expanding market opportunity, we see a clear path to exceed our long-term financial targets including delivering more than $20 in EPS over the strategic time frame. Now I will turn the call over to Jean to provide additional color on our first quarter results.

Jean. Thank you, Lisa, and a good Good everyone. I'll start with a review of our first quarter financial results and then provide our current outlook for the second quarter of fiscal 2026. We are pleased with our outstanding first quarter results, delivering accelerated revenue growth and earnings expansion driven by strong execution and operating leverage.

First quarter revenue was 10.3 billion, exceeding the high end of our guidance, growing 38% year-over-year, driven by strong growth in the data center and client and gaming segments, and the return to growth in the embedded segment. Revenue was flat sequentially with a continued growth in the data center segment offset by seasonality in the client and gaming segment and embedded segment.

Gross margin was a 55% up 170 basis points versus a year ago, driven by a favorable product mix, including a higher data center revenue contribution. Operating expenses were 3.1 billion, an increase of 42% year-over-year, as we continue to invest in R&D to support our AI roadmap and long-term growth opportunities and go-to-market activities.

As the business scales, operating income grew faster than top line revenue. Operating income was a 2.5 billion, representing a 25% operating margin. Taxes, interest, and other resulting a net expense of approximately 275 million. For the quarter, diluted earning per share was $1.37, up 43% year-over-year, underscoring the significant operating leverage in our model as we scale.

Now turning to our reportable segments, starting with the data center segment. Revenue was a record of 5.8 billion, up 57% year-over-year and the 7% sequentially, driven by strong demand for epic processors and the continued ramp of Instinct GPUs. Data center segment operating income was 1.6 billion, or 28% of revenue compared to 932 million or 25% a year ago.

Client and gaming segment revenue was 3.6 billion, up 23% year-over-year. On a sequential basis, revenue was down 9% consistent with seasonality. The client and business revenue was a 2.9 billion, up 26% year-over-year, driven by strong demand for our latest Ryzen processors, favorable product mix, and the continued share gains across consumer and the commercial markets.

Sequentially, client and revenue was down 7% due to seasonality. The gaming business revenue was a 720 million, up 11% year-over-year, primarily driven by higher demand for Radeon GPUs, partially offset by lower semi-customer revenue. Sequentially, gaming revenue was down 15% consistent with our expectations.

In addition, as Lisa mentioned earlier, we expect second half demand in gaming to be impacted by higher memory and component costs. We now expect second half of gaming revenue to decline more than 20% compared to the first half. Client and gaming segment operating income was 575 million or 16% of revenue compared to 496 million or 17% a year ago.

Embedded segment revenue was 873 million. Up 6% year-over-year as demand strengthened across the several end markets. Sequentially, embedded revenue was seasonally down 8%. Embedded segment operating income was 338 million of 39% revenue compared to 328 million of 40% a year ago. Turning to the balance sheet and the cash flow, during the quarter we generated 3 billion in cash from continuing operations.

And the record 2.6 billion in free cash flow of 25% of revenue. Demonstrating the cash generating power of our business model. Inventory was roughly flat at 8 billion. At the end of the quarter, cash, cash equivalents, and short-term investment were 12.3 billion. In the quarter, we purchased 1.1 million shares and returned a 221 million to shareholders.

We ended the quarter with a 9.2 billion authorization remaining and our share repurchase program. Now turning to our second quarter 2026 outlook. We expect revenue to be approximately 11.2 billion. Plus or minus 300 million. At the middle point of our guidance, revenue is expected to be up 46% year-over-year.

Driven by a very strong growth in our data center segment. Growth in our client and gaming segment. And the double-digit growth in our embedded segment. Sequentially, we expect revenue to be up approximately 9%. Driven by double-digit growth in both our data center and the embedded segments. And the modest in our client and gaming segment.

In addition, we expect second quarter non-GAAP gross margin to be approximately 56%. Non-GAAP operating expenses to be approximately 3.3 billion. Non-GAAP other income and expense to be again of approximately 60 million. Non-GAAP effective tax rate to be 13% and the diluted share count is expected to be approximately 1.66 billion shares.

In closing, the first quarter of 2026 was an outstanding quarter for AMD. Reflecting strong momentum across the business with accelerated revenue and earnings expansion. We are very well positioned to build on the momentum as we scale our data center business, expand margins, drive continued earnings growth, and the long-term shareholder value creation.

With that, I'll turn it back to Mark for the Q&A session. Thank you, Jean. Operator, we're ready to start the Q&A session now. I would ask the callers to limit yourself to one question and one brief follow-up. But, please go ahead and pull for questions. Thank you. Thank you, Matt. We will now be conducting a question and answer session.

If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the queue. You may press star two if you'd like to remove a question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

We ask that you please limit yourself to one question and one follow-up. Thank you. One moment, please, while we pull for questions. And the first question comes from the line of Joshua Buckwalter with TD Cowen. Please proceed with your question. Hey guys, congrats on the results and thanks for taking my question.

Um I'm actually going to start with CPUs, which hasn't happened in a bit. Um you know, it it it it hasn't been that long since you announced the $60 billion server CPU TAM for 2030 at the analyst day and and it's very quickly doubled. Um agentic AI has obviously gotten a lot of attention in recent months, but would be helpful to hear your thoughts on how this TAM is inflecting and changing so meaningfully in such a short amount of time and and maybe you could also speak to your confidence in hitting that greater than 50% share targets on the analyst day.

As your x86 competitor seems to be, you know, improving its supply and also there seems to be more momentum on the um merchant and custom arm CPU side. Thank you. Yeah, sure Josh. Thanks for the question. So uh you know, first of all, uh back to the when we think about CPU TAM, I mean we've always said that uh CPUs are a very critical part of data center infrastructure and you know, that's been uh where we've invested.

And we saw the first signs of let's call it AI demand uh really pulling CPU demand uh you know, last year and that was you know, the reason we updated the TAM to you know, let's call it the 18% CAGR or approximately 60 billion. And you know, what we've seen is you know, all of the things that we believed in terms of um you know, agentic AI and inferencing and all the CPU compute that is required um is is just happening and it's happening at a much faster pace.

So, you know, over the last um you know, let's call it the last few months as we've talked to our customers and we've seen how AI adoption is uh really unfolding, um you know, we're seeing a significant more uh CPU demand from you really every uh major cloud provider as well as um you know, enterprise uh customers.

And you know, that the way that comes across is as AI adoption scales, you need more inferencing and inferencing scales, you know, and you do more you have more um you know, agents and agentic AI. Um they all require CPUs for, you know, all of the orchestration and the data processing and and these other tasks.

So, you know, with that, um, we've looked at it both, you know, bottoms up, you know, in terms of talking to customers and having them, uh, you know, give us longer-term forecasts, as well as just doing, um, some, you know, clear workload, uh, analysis. And yeah, I mean, it's a very exciting TAM. I think it's exciting to see, you know, CPUs growing, you know, greater than 35%.

Um, to, uh, you know, over 120 billion dollars. And then, you know, when you think about, you know, AMD in the context of that, I mean, you know, CPUs are are critical for so many tasks that you are seeing, um, a lot of a lot more discussion about CPUs in the market. Um, but we actually, you know, view it in three categories, right?

There's general-purpose, uh, compute, um, there's the head nodes that really, uh, you know, support the, um, AI accelerators. And then, you know, there's CPUs just for all of the agentic AI uh, work. And you know, to do all of this, um, you know, our belief is you need a broad portfolio of CPUs. And that's really uh, what we have been focused on is building, you know, not just, um, you know, one type, but really a broader in terms of, you know, throughput optimized, power optimized, cost optimized, you know, AI infrastructure optimized, um, as we've done in the Venice family.

So, you know, when you put all that together, um, we're very excited about the larger TAM. And, uh, we're also, uh, you know, very happy with, uh, the traction that we're getting. Um, we're clearly, uh, feeling like we're seeing significant share gain as, uh, you know, we're going, um, into our turn, uh, portfolio that has ramped very nicely.

Uh, Venice is extremely well positioned, and we're working with customers right now on, you know, beyond Venice and, uh, what we're doing in those architectures. So, we feel really good about the market, as well as, you know, our opportunity, uh, to grow to a greater than 50% share of that market. Okay, thank you for all the color there.

Um, there I wanted to ask about the Instinct side. So, in the press release you mentioned that MI250 and Helios engagements are strengthening with customer forecasts exceeding the expectations and the pipeline growing. Um, you know, you you certainly have the the big public open AI and Meta deals. Was this comment referring to those engagements up-sizing versus the announced initial deployments or was it other other customers and maybe as the increase on MI250 timeline or is it MI 500 and beyond?

Thank you. Sure, Josh. So, we are very excited about MI250 and Helios. We're seeing significant customer interest in those products as well. So, you know, we have certainly talked about our our large partnerships with Open AI and Meta and those are going really well. We appreciate the deep co-engineering that has gone on there.

You know, when we look at the totality of let's call it, you know, based on our current visibility, you know, how those forecasts are coming in with all of our customers. We're actually seeing it above our, you know, initial plans that we had planned for 2027. And I think the encouraging thing is we're seeing a breadth of customers who are now very interested in deploying at significant scale MI250 series and those and those are for both training and inference workloads, although the largest deployments are for inference.

And you know, based on, you know, all of that and the scale of new customer interest you know, we see a a path to really get to exceed our, you know, original, you know, targets of greater than 80% CAGR. And these are really 2027 time frame. Obviously, when we talk to customers, we're talking to them about you know, MI355.

There's a lot of good traction we're seeing there. MI250 and Helios, I think for significant large scale deployments. And then And customers are also very engaged with us on the MI, you know, 500 series and all of the opportunities there. So, you know, we we feel like a very very good progress and you know, the key is that we're, you know, continuing to to broaden and widen the scope of both customers as well as as workloads.

And the next question comes from the line of Thomas O'Malley with Barclays. Please proceed with your question. Hey guys, thanks for taking my question. Lisa, if I if I get your numbers correct here in the March quarter, it sounds like you know, the server processor side of the CPU side grew to over 50%.

If you take it just at the word, it looks like maybe the data center GPU side actually grew in Q1. So, I was curious around the cadence of this year kind of previously you had talked about really a back half weighted and then kind of more so Q4 weighted year. Could you talk about if that's changed at all?

And then the second part of the question is as you go into 2027, clearly you're pointing out a lot of upside from the larger customers and then kind of the ecosystem around them with new customers as well, but when you look at supply that's a major issue in the ecosystem today. Could you talk about where you're concerned on supply if you are and then any gating factors as you look into next year, whether that be power, data center build outs, etc.

or do you feel really good about the ability to grow? Thank you very much. Yeah, okay. A lot of pieces of that question, Tom. So, let me try to get through it. So, first of all, on the data center segment in Q1, the server business was you know, greater than 50% year over year as we said in the prepared remarks.

The data center AI was actually down modestly because of the China transition. We had more China revenue I'm sorry, sequentially more China revenue in Q4 and it was less in Q1, but as we go forward, I think we see strong growth in both segments. So, we guided data center Q2 up uh sequentially double digits and that's a double-digits in both uh server as well as data center AI.

And progression as we go forward, so first on the server CPU side, uh we talked about growing to over 70% uh year-over-year in Q2, and that continuing into the second half of the year. And on the data center AI side, we will be ramping Helios um in the second half of the year, so let's call it starting with initial volume in Q3 um with a significant ramp in Q4, and then continuing to ramp in uh Q1.

So, um you know, that's kind of a little bit of the progression. And then to your questions about customers and supply, um I think I answered, you know, Josh um the the customer question. I think we have um you know, very uh you know, good visibility now into um the deployments that are on track for 2027.

And when I say good visibility, it's visibility down to you know, which data centers are uh the GPUs going to be installed in, and um so that's um you know, necessary just given all of the the constraints out there. Um we feel that uh there is tightness in the supply chain. There is certainly tightness in you know, sort of data center build-outs, but uh we are confident in our ability to supply uh to uh the levels of growth that we're talking about and to exceed the levels of growth that we're talking about.

And we're also working very closely uh with our um with our customers and our partners to ensure uh that we have good visibility to data center power, and there is much more power that's coming online in 2027. Um and so uh with all those things in mind, I think, you know, again, lots of things to manage.

It's a It's a complex ramp, but we're very um very pleased with the progress on the ramp. All right, Tom, I think you uh shotgunned approach the uh the multiple questions there. So, um operator, maybe we can go on to the next caller, please. Thank you. Thank you. The next question comes from the line of Ross Seymore with Deutsche Bank.

Please proceed with your question. Hi, thanks for letting me ask a couple questions. The first one is just on the epic competition. Lisa, you went through some of the statistics of you versus x86 and you versus arm, but I want to dive a little bit deeper into that. How do you see AMD truly differentiating, especially when you're signing Well, you see some of your competition signing up the same customers from the arm side and the x86 competition having more supply.

So, I just wanted to see if you could dig a little bit deeper into how you think the market share is going to trend over time. All right, Ross. So, look, we're very uh you know, we're very engaged with, you know, every major hyperscaler and in terms of understanding their needs on the CPU side. I think we have very much a wanted to, let's call it, optimize our CPU roadmap for the various workloads.

I think we were early to call this you know, AI components of CPUs and so, we've been actually optimizing a very closely with those customers. The way to think about this, Ross, is that you're going to need a broad portfolio of CPUs. Like, not all CPUs are the same. You know, frankly, you're going to need different CPUs for whether you're talking about general purpose operations or you're talking about head nodes or you're talking about agentic AI tasks.

They're going to be optimized differently. And we thought through that and we are, you know, absolutely optimizing across the various workloads. So, from a competitive standpoint, we feel very good about where things are and from a you know, deep relationship, you know, with the customer set, I think we feel very good about that.

So, from our current, you know, standpoint, I think the depth of our roadmap just expands as we go forward and you know, you shouldn't think about it as you know, people are going to do one or the other. Um I think you're going to see people um actually use x86 um you know, and arm um for many of the large hyperscalers uh and you know, even for those who are developing their own, um they're still buying lots of CPUs um in the merchant market uh for the reason that I just stated, which is you need different CPUs for the different types of workloads and um you know, there's very high demand at the moment.

Thanks for that. I guess for my follow-up maybe more for gain on the gross margin side of things. Uh it's nice to see the gross margin popping up in the second quarter guide, but I just wanted to get some trend longer term, maybe not specific numbers, but how should we think about when Helios and and the Instinct side really ramps in the fourth quarter and more so next year?

I can see some offsets with that hearing a below corporate average gross margin, but then everything that Lisa talked about with the Epic side of things being significantly stronger might be more of an offset than it was in the past. So, just walk us through the puts and takes of that and maybe directionally where you think gross margin goes over the next year or two.

Yeah, Ross, uh thanks for the question. Uh we are very pleased with the how our gross margin is trending. It came in really strong in Q1 and also as you mentioned, we guided the Q2 higher at the 56% uh I I think as we think about the second half or quarter over quarter, as you know, uh there are some puts and the takes, right?

I will just say from a tailwind perspective, we actually have a multiple tailwinds uh really are going to help our gross margin. First year is a server CPU, you know, Lisa talked about the server CPU to expect to grow more than 70% in Q2 and you know, continue to be really strong in second half. That really helps our gross margin.

Uh secondly, in the second half, gaming actually is going to come down and our client business actually continue to go up the stack. So, from client to gaming segment the gross margin actually is going to be also very helpful. Embedded actually is very accretive to our gross margin. Its momentum actually is continuing in the second half.

So, we are really pleased with all the tailwinds we have. On the other side, MI450 will start ramping in Q3 and the ramp significantly in Q4. That is below corporate average. So, that will have different puts and takes in Q4 in the gross margin side. But, when we sit here, when we look at the all the positive trends we have to really offset some of the gross margin dilution from MI450 side, we actually feel really good about the setup of the gross margin for 2026 and into next year, I think that some of the tailwinds I talked about that will actually continue.

That's why we feel confident about continue to drive the gross margin. We actually doing our financial analyst day, we outlined the long-term gross margin in the range of 55% to 58%. We think that for the first year we're making good progress there. And the next question comes from the line of Timothy Arcuri with UBS.

Please proceed with your question. Thanks a lot. I want to ask about units versus ASP for server CPU. Um, if I look at the June guidance, it sort of implies up 25% to 30% for server CPU and you know, Lisa you had mentioned second half of the year, it sort of implies that server CPU could grow like 70%, you know, maybe a little more this year.

And so, I guess my question is how much of that growth either in June or for the year is like units versus pricing? Is the Are these price increases sort of, you know, mostly captured in June, or is that also helping in the back half of the year? Yeah, um, Tim, the way I would say it is, maybe let me let me bring you back to Q1 for a moment.

So, if you look at our significant growth in the the server business, it was actually, although we were up on a year-over-year basis for both ASPs and units, it was actually much more unit driven. So, we are shipping more CPUs, you know, across not just the high-end and you know, Turin family, but we're actually shipping a lot of Genoa's, um, sort of the the Zen 4 family as well.

Um, as we go forward for Q2 and into the second half, we are guiding for a significant amount of growth. I think there's a little bit of ASP in there, but you know, the way we're thinking about pricing to be fair is we are in a range where the supply chain is tight, and so there are some inflationary pressures, costs have gone up a bit, and we are sharing some of that with our customers, but we are also being very thoughtful in like this is, you know, we're playing out for the long term, and you know, that means that we are our our goal is to ship more units and a lot more units.

And so, from from that standpoint, you should imagine that the majority of the growth is unit driven, and the the ASPs are just really to help cover some of the inflationary pressures. And to just to add what Lisa said, our ASP is increasing because the mix, where actually each new generation the Qualcomm, so those are increasing, that actually drives the ASP up.

Thanks a lot for that. And then I guess Lisa also, so there's a lot of new architectures that are being used from you know, multi-tenancy all the way to low latency, and you know, your competitor has talked about the low latency part of the market being, you know, 20% plus, and they of course added to their portfolio there.

Can you You about how you see that part of the market? I mean, obviously, you have enough business right now. You don't need to worry about that probably for now, but can you talk about that? Thanks. Yeah, sure. Uh so, look, I think what we're seeing um is uh what we expected in the sense that, you know, as you go uh you know, as the AI adoption continues uh you know, and the volumes uh you know, continue to go up and the the overall market goes up, you are going to see uh let's call it um uh different computer architectures being used because uh you you want to get more cost optimization from that.

So, we expect that, you know, even in that situation, you know, obviously, the vast majority of the TAM is still going to be um you know, let's call it data center GPUs as the primary accelerator, but you may choose to do optimization around inference, around, you know, low latency, um around, you know, certain parts of the stack, whether it's decode versus prefill.

I think that's very natural. Um the way we look at it is, you know, we're developing a full compute portfolio. So, that's CPUs, that's GPUs, that's the ability to connect to all accelerators, um as well as uh the ability to do customization um for certain customers, and um we've also talked about, you know, our semi-custom capabilities.

And with all of those um you know, sort of compute capabilities in our tool chest, um I think we will be able to uh to um address very effectively a large portion of this market, including, you know, the low latency uh portion of the market. So, um you know, from our standpoint, this is kind of a natural evolution.

Now, how fast it goes depends um you know, a bit on the technology uh in terms of, you know, what share of the TAM these things become, but we should expect that there will be different variants, and we're well prepared to address those different variants. Thank you. And the next question comes from the line of Vivek Arya with Bank of America.

Please proceed with your question. Thanks for taking my question. Um Lisa, do you think a gigantic CPU growth is incremental or is it coming at the expense of uh GPUs conceptually? So, if you are raising the word CPU TAM, are you also implicitly going to raising AI TAM? So, just I'm I'm, you know, interested in your perspective on what did you think a server CPU uh was as a percentage of AI TAM before and what is it now with this 120 billion number?

Sure, but that's So, the way we're thinking about it is it's largely additive uh to the TAM. So, you should think about um you know, we need all of the accelerators uh you know, to run these you know, foundational models and then as these agents do work, they they spawn, you know, more CPU tasks. So, I would say largely incremental.

Um the key is um to make sure uh what you know, we're seeing is um in these deployments, uh the key is to make sure the ratio of CPUs to GPUs are um the right ratio. So, if you're installing a gigawatt um you know, the ratio uh the the percentage of you know, CPU as part of that gigawatt will will increase.

Uh you know, some of the the conversation in the industry has been about you know, CPU to GPU ratios and yeah, it's very hard to call exactly, but you know, we we certainly see uh the uh movement towards you know, where in the past the the CPU to GPU ratio was primarily you know, just as a host node, you know, in in the like a one to four or one to eight configuration.

You know, now changing and getting closer to a a one to one configuration or um you know, even you know, you can even imagine if you get lots and lots of agents that you could have more CPUs than GPUs. So, um uh but that's you know, all all in all to answer your your question, um I think it's largely additive to the TAM and you know, the key is that everyone is now planning and thinking about CPUs at the same time that they're thinking about you know, their accelerator deployments uh which is which is a good thing.

Right. And for my follow-up, Lisa, you know, we we continue to see memory prices go up. I imagine that is both kind of a cost inflation for you, but perhaps an opportunity to to take price as well. I'm I'm curious, how is that dynamic playing out for AMD and and especially for your customers because you know, a greater part of their capex increase is really kind of this memory inflation tax, right?

That that they have to pay. So, how's this dynamic playing out for you and for your customers? And and the part that I'm really interested in is that have you secured enough supply, you know, versus your other larger competitor who has disclosed a lot of prepayments and and other things. So, just how's this memory inflation dynamic playing out and you know, are you kind of adequately supplied from from that perspective?

Sure. So, Zach, let me answer the second one first. I think from a supply standpoint, we are very happy with our partnerships with the memory vendors and we have secured enough supply to you know, certainly meet and exceed our our targets. So, it is a tight memory environment, let me be clear. But I think we are very deep partnerships with the memory providers.

And then back to your your comments on the inflationary pressures. I mean, look, this is something that everyone in the industry is in the time of tight supply, you know, we are seeing some cost increases on the memory side. I think we are all working through that. The the the way we're seeing it unfold in the market is is actually on the data center side, you know, because of the let's call it the demand for AI compute.

I mean, people are largely you know, focused on supply and ensuring that the supply assurance is there. The the corollary of that, you know, the larger impact that we're watching is, you know, the impact on the consumer markets. And, you know, as we said in the prepared remarks, you know, we are expecting that there could be, you know, some, you know, demand you know, sort of the demand impact as a as a result of the memory price increases on, you know, things like the PC business in the second half of the year as well as the gaming business.

So, we're taking that into account in our in our overall model. And you know, we continue to work closely with the the memory providers as well as our customers to ensure that you know, every time we we ship a CPU or GPU that it's paired with the memory on the other side so that we we don't have you know, compute that is not being deployed.

And the next question comes from the line of Aaron Rakers with Wells Fargo. Please proceed with your question. Yeah, thanks for taking the question and congrats on the results. I I want to stick on the on the topic of CPU to GPU and as we think about the chart that you had outlined at at the analyst day, there there was obviously broken out between traditional CPUs and then the AI bucket on top of that.

Obviously, I think the new forecast has a lot to do with the AI, you know, CPU expansion. I'm just curious when you're doing a CPU in an AI workload, is there structurally a different level of ASP tied to that kind of CPU optimized for AI relative to a general purpose server CPU? Any any kind of color or help on that would be would be useful.

Sure. So, let me start with the the broader question. The broader question, you know, regarding you know, the way we think about the CPU TAM is again, think about it as three categories. So, there is a you know, traditional you know, CPUs let's call it general purpose CPU TAM that you know is increasing but let's call it increasing at um you know low rate maybe uh let's call it low double digits then you have your um AI head node uh which is connecting to accelerators which is um you know also growing but it's it's um it's smaller and then the largest piece of the growth is this AI genetic AI um you know piece which you know we think is is really stemming from all of the genetic processes um I don't I would I don't have a a number that I can tell you in terms of relative ASPs because it really depends on the workload that is being run and um you know at what we see going forward is you know as core counts increase you know obviously uh you know we will see ASP increase and you know that's um what that's the direction that we're going in as we as we go forward but the the main point is the the largest portion of this is the you know the genetic AI um the the the CPUs that are serving these genetic AI workloads in terms of the TAM increase.

Yep. And as a as a quick follow-up I'm I'm curious you know how how do you characterize the competitive landscape as we see you know some of some of the arm introductions in the market just curious of of your views on on the competitive landscape in server CPUs. Thank you. Yeah um the the best way to think about the server CPU landscape is you know again number one everyone is talking about CPUs so that that tells you how you know critical they are for the AI infrastructure and I think that's a good thing.

Um we feel like we're very well positioned no question you know arm is a is good architecture it has a place in the data center market um you know we view it as more um you know point products relative to a portfolio where you know from an AMD standpoint we built this you know broad portfolio of um of CPUs going forward which you're going to need for all of these different workloads and you know, we have in the Venice timeframe added an AI optimized you know, CPU with a Verona in addition to our throughput optimized and you know, sort of cost optimized point.

So from that standpoint, I think we're very competitive. We're continuing to innovate on you know, architecture. We're continuing to innovate on you know, both advanced packaging as well as you know, all of the the architectural pieces. So we feel very well positioned going forward and the key is the TAM is much much larger than anybody thought and so there's a lot of opportunity for you know, for different products to to be successful in in this area.

And the next question comes to the line of CJ Muse with Canter Fitzgerald. Please proceed with your question. Yeah, good afternoon. Thank you for taking the question. I guess the first question was hoping to speak a bit more about client for all of calendar 26. You talked about growth expected growth but would love to hear you know, your thoughts around seasonality in the second half and I'm assuming that you are repurposing certain logic tiles from client over to the data center and and would love to kind of better understand what the implications are for ASPs on the client side looking into the second half.

Sure. So CJ, I think the client business has performed really well for us. I think if we look at you know, Q1 it actually was a little bit stronger than what we expected. We are seeing some mix shift in the client business. The mix that we're seeing is the you know, the MNC or the notebook business is actually growing especially the premium portion.

We're making very good progress in the commercial PC arena with our AI PCs. We did see desktops a little bit, um, you know, softer uh, just given desktop is a more consumer focused market. And so, in that market, um, it's more impacted by, you know, some of the memory pricing and the component, um, price increases.

You know, when we look at the full year, our, you know, commentary is, um, you know, we are planning for, um, you know, some uh, demand impact in the second half, uh, due to the the memory pricing. But, even in that environment, um, you know, what we're focused on is ensuring that we continue to make good progress on the, uh, on the commercial business and continuing to focus on the premium segments of the market.

So, we believe that we will, um, you know, uh, continue to grow, um, on a year-over-year basis, uh, for the client business, um, compared to, uh, compared to last year. And as it relates to, you know, ASPs, again, it's a little bit of puts and takes between, uh, notebook and desktop. But, you know, overall, I think we're feeling good about our opportunity, uh, to outperform, uh, the market in client, uh, going forward.

That's helpful. Uh, and then I That That That's perfect. Thank you. And then I guess, uh, a question on Instinct gross margins, um, you know, with compute essentially sold out, and and obviously, you're building a business, so, um, you know, one has to be, uh, I guess, conservative on that front. But, I would think outside of kind of passing through HBM, uh, that, you know, given the very tight wafer environment, that this would be a place where, you know, you could look to drive your your Instinct margins closer to your corporate average.

How How are you thinking about that, you know, either today or, you know, in the coming 1 2 3 years? Hi, uh, CJ. You know, at this stage, you we really focus on drive the top line revenue growth, um, our, uh, Instinct of family of products. I think on the gross margin side, you're absolutely right. It's, you know, it's really tied to, uh, the demand for computer is a tremendous.

Uh we actually are very strategic on how we think about the um how we work with the customers and of course the different customer also have different gross margin. I think over time once we start to ramp up our revenue, uh we'll have a lot of opportunities to improve gross margin both, you know, on the ASP side uh but also more importantly on the cost side when we scale our business.

Thank you. And the next question comes from the line of Stacy Rasgon with Bernstein Research. Please proceed with your question. Hi guys. Uh thanks for taking my questions. Um for the first one I I just wanted to make sure I have the near-term uh AI GPU trajectory correct. So, I know you said it was down sequentially in Q1 because of China.

You had like 390 million of China revenue in there in Q4. Did the AI business in in in Q1 actually grow sequentially ex-China cuz it doesn't feel like it given the server outlook? And then I look at what's maybe suggested for Q2. Um are you thinking GPUs and servers kind of grow similar rates sequentially cuz it would probably put GPUs in Q2 below the overall level that you were at in Q4, which seems low to me.

I'm just I'm just trying to tie all that out. Um could could you help me with that, please? Yeah, so uh I think uh uh Stacy, appreciate the question. Uh I think if you look at the Q1, we did mention data center AI was down modest base up sequentially uh primarily due to lower China revenue in the quarter.

I think on your second question regarding Q2, you're right. Both data center AI and the server uh will grow double digit in Q2. Yeah, but you didn't answer my my question. Did in Q1 did it grow sequentially ex-China step down? I guess is what I'm asking. Uh the China for our business in Q1, it's not material.

So I think I would repeat what I just said is Yeah, the the the revenue China revenue in Q1 is not material. Okay. Okay, so you don't want to you don't want to Okay. Second question, OPEX um you for spending, but it sort of continues to blow past the targets. You kind of give an OPEX guide and and then it blows through it and then you guide higher.

So again, I'm not I'm not bothered by the spending. I'm just wondering why is the OPEX been so hard to forecast? And how should we think about OPEX through the rest of the year given the revenue growth? Yeah, the Thanks Stacy for that question. I I think the most important thing is given the tremendous market opportunities we have, we actually are investing aggressively.

Uh if you look at the past several quarters, we really leaning in in investing, but all the AI investment are driving the revenue momentum. So if you look at the Q1, we revenue was 38% up, but then Q2 it was uh what we guided at 46% up. The investment are driving the revenue momentum. Some of the um OPEX increase of course it's tied to the revenue.

When you look at the our beat on the revenue side versus our guidance, we did beat on the revenue side, right? So that impact a little bit, but also at the same time, you know, we have a lot of a customer engagement with our data center AI business. We do continue to make sure we have the resources to support our different customers.

Thank you very much. Um operator, I think we have time for one more caller on the call. Thank you very Thank you. Thank you. Our final question comes from the line of Blaine Curtis with Jefferies. Please proceed with your question. Hey well, thanks for squeezing me in. Um we just want to go back to the supply side.

There was a lot of story about your competitor restarting seven nanometer. I mean, I'm just kind of curious as you look at that landscape, which is quite robust throughout the end of the decade, do you think that the older products will stay around longer? And is there a way to think about the implications for gross margin in such a strong market?

Is that actually a negative? Um actually, Blaine, I don't think we see the older products hanging around longer in our case. I think it all might be company-specific stuff. In in our case, we actually see First of all, you know, we, you know, Turin is very strong. Um we actually crossed over, you know, 50% of our revenue being Turin this quarter.

Genoa is is very strong. You know, we're still shipping some Milan, but I would say that's come down over time. So, it in general, people want to use the um the more the newer products because they're they're just more, you know, efficient in in every aspect from performance, from cost structure, from you know, power standpoint.

So, that's what we're seeing. By the way, I should also mention, you know, in addition to, you know, what we're seeing in the cloud segment of you know, server, we're seeing really nice, you know, strong pick up in enterprise. And there, as well, we're seeing our newer products do very well. So, from from our standpoint, it is all about, uh ensuring that, you know, we ship what the customer needs.

Um and in this case um it it typically is our uh newer products and you know, we expect that to continue. Um as we transition into Venice later this year, uh we will you know, expect Turin and Genoa to continue shipping, but um there there's uh there's a lot of of goodness in going uh to the new products.

And on the supply chain side, I know there's been you know, a lot of discussion about how tight the supply chain is. Um the supply chain is tight. Uh I would definitely say that, but I I also think you know, this is an area where we excel. Uh we have very deep relationships across the supply chain. Um on the wafer side, on the back end uh capacity side, and you know, we are seeing meaningful improvements in that.

Um and as our customers come to us with more demand, uh we are you know, getting more supply. And uh the good thing about this is we're now talking about 27 CPU demand, we're talking about 28 CPU demand, and so that allows us to just plan uh you know, much better um as we go forward. Thanks, and just a quick one for Jean.

I'm just curious to follow up on Stacy's question on OpEx. I I guess I was a little surprised that SG&A is kind of outpacing R&D. I was just kind of curious, is that startup costs? I mean, cuz in a strong market, you wouldn't think you would have to discount or or have a big sales effort. Um so, I'm just kind of curious for the year how you think about R&D growth versus SG&A.

I think uh for the year, you should expect us to grow R&D much faster than SG&A. Uh I think uh in the past a few quarters, uh we have been really building our go-to-market uh machine, and we have been investing more in sales and marketing side. But going forward, you should expect the year-over-year growth R&D will grow faster than SG&A growth.

Yeah, and if I just add to that, Blaine, the places that we invest uh Jean's absolutely right. We're investing in R&D um ahead of um you know, sales and marketing. But, the places that we're investing in sales and marketing are paying off. So, uh the investments are going into um enterprise servers, they're going into commercial PCs, they're going into mid-market, uh small and medium business.

These are places where AMD traditionally didn't invest, um but now that, you know, we have a much broader portfolio both on the um server CPU and on the uh commercial PC side, it makes sense for us to invest because, you know, that that's sort of the the very uh best part of of those markets. All right.

Thank you very much, everybody, for joining in your interest in AMD. John, you can go ahead and close the call now. Thanks. Thank you, and ladies and gentlemen, that does conclude the question-and-answer session, and that also concludes today's teleconference. We thank you for your participa- participation.

Okay. Stacy thought he could kill the rally, bro. It did not Dude, we're going for 400, for real. We're about to hit 390. every earnings. Doesn't matter who it is. He tried, but Stacy's mom does not have it going on today. 398. Jose, I saw I wish you were not muted, Jose, cuz everyone could have heard you laugh.

That was a good one. I like that a lot. Thank you. I appreciate it. Uh all right, Jose, we'll start with you. Reaction to the stock price and then to the actual call itself. I I mean, I mean, stock price amazing, right? I I'm definitely going to go out and get a nice dinner with the family right after this.

Um right, all jokes aside, call was amazing, right? I I I kind of mentioned preview two things I was looking for. First was kind of more updates on the CPU side, uh and then any update on the GPU side. If we can kind of go into the CPU market first, uh they doubled their TAM, right, of their financial analyst event that they did what, 6 months ago?

They were expecting a 16% compounded annual growth rate, now closer to 35% uh, a $120 market. Um, and for Lisa to do that, right, this is target compounded annual growth rate for the next 3 to 5 years. For her to do that, I feel like she's very comfortable to to kind of give these numbers and again, still a little sandbagging.

Uh, so CPU market is here to stay. Um, we heard it from Intel again, but I'm happy that Lisa Su mentioned it that there is the possibility where the GPU and CPU numbers go to almost a parity or depending on how AI engines go, it might actually be more CPUs than GPUs. Then following that, uh, following that, she mentioned that, um, this is all accredited.

So, it it's important to know that cuz some people get scared when they hear that that it means less GPU demand. That's not what it means. It means the same amount of GPU demand, probably even more. It's just that the CPU market, um, it it is going to go higher. Now, I don't want to take all the talk, so I'll pass it over to Neil or Tander here, uh, but feel free to bring it back as I do have a lot more.

Neil, your reaction? I mean, very good. Very good. I said to to Jose in private, this is probably one of the the the first times where where Lisa Su is actually very, very confident to talk about specific uh, timelines. Okay, we're not always getting exact numbers like Stacy wants. Uh, what about China revenue in the Q1?

So, what about So, I guess you're not going to answer my question. It's crazy cuz he does he literally does it every single quarter. Like every single quarter is like, Stacy's on, okay. That's that question again. Bro, look at this guy. He he's he's really high up on Wall St. I mean, I was looking through his uh, thing.

A lot of the semi analysts are. I was just looking at his smug face ruining the rally. I mean, throw this up. And I was just getting mad. I was looking at him while the rally was getting killed and I was like, "Stacy, you freaking guy." But this guy's always been against not been against, but he's never been excited for AMD.

Right, Neil? He is Yeah, I don't know. He's uh He He's always the one asking these types of questions and then trying to say, "I got you there." But Like even his question about China, I don't know how that was relevant. Like I mean, it's not Yeah, it's not even relevant to to the thesis anymore cuz like Jensen's keeps saying time and time again, that market is basically dead to to them right now.

So Right. I I I don't understand what what he wanted to do there, but okay, fine. But going back to what what what I liked, which most of it I liked, it's the again CPU from 60 billion to 120 billion. Um okay, client side because of some higher memory cost second half of the year gaming segment and all of that is going to take a little bit of a hit, but all in all AMD still expects to grow faster than the market.

Oh, yeah, we're still getting that double-digit growth, tens of billions of dollars that they're going to generate. So it seems like she's very very confident in in what AMD has to offer. Probably also because she she has the backing of of Meta for for billions and billions of dollars. So I guess it puts them in a in a good position.

Um talking about supply chain and all of that, she's also very confident that that their partnerships with with whoever is good enough. Um they're investing enough. So shouldn't be an issue in order for them to reach their their huge goals by by 2030. So Yeah, 400 400 it is. Does it needs to reach $600 in order for Open AI to get paid, right?

Or one one of the yeah. Real quick, so AMD's pushing new highs right now, 29850. But if you also look, 29870. Arm is moving a ton after hours, up 6% and Intel is also up 5%. So, the CPU comments were bullish. Yeah, we're shared across the board. Everything but Nvidia, you know? Um good for me. Tanner, what did you what did you think about it I mean, do you think anything was bearish for Nvidia or

No. No, everything was additive and um Nvidia is a CPU company as well. I know people don't want to think of it that way, but they they absolutely are. And um Yeah, it's just uh I I I I share a lot of sentiment with Jose. Um the the the the CPU comments saying that, you know, they're going to see uh a more supply than what the market was initially anticipating, but it's not taking away from GPUs.

And um it's all just going to be about if we end up seeing better models, the the models end up seeing more use cases, we're going to need more AI infrastructure. You know, the the the backlogs that we're seeing across Amazon and Google and Microsoft Azure that cannot come from the GPUs that we already have.

A lot of those clouds and neo clouds are at full either 90 or 100% utilization. And so, you need more chips. People are realizing that they're going to uh all providers and um I do think that the rally is a little strong. Like AMD at 400 is uh a pretty significant premium, but if the build out persists, it could be worth it.

I just think, you know, to have one one name at, you know, 130, 150 PE and another one at a 40 PE, it's just that that's growing much faster with higher margins just surprises me, that's all. Yeah, I I I I definitely I think for AMD that it's the you're buying for that opportunity to potentially be that next Nvidia kind of thing or right down there.

I I one of the things that I think most investors, if they're looking closely, um the the forward PE not Lisa Su kind of gave us earnings per share for the next 3 to 5 years of $20, right? So, it's like as long as you believe this $20 is possible and as long as this AI cycle is possible for the next 3 to 5 years, then you're not paying that crazy price on the next whatever 3-year forward PE ratio.

Uh but then it's like that that seems crazy, right? When you can kind of pay for Nvidia trading at some of those valuations right now. Um and and I think what we see again here is is the market um and we continue to hear we it's not like we've heard it from various CEOs that this is not a one winner, one loser game, right?

We see it here with the CPU space. ARM, Intel, and AMD are all up on that CPU news. And Lisa Su kind of brought it out. She's like, this is not a one or another. It's going to be same like we saw with the Some people think because more CPU, it means less GPUs. I think eventually the market or investors need to kind of at least in this part of the cycle where we're in, it's multiple winners for where at right now.

It's not a one person wins and everybody else loses. Uh oh, one final point. I saw for the um GPU side, Lisa Su also mentioned that they had um initial plans and growing number of new customers engaging on large-scale deployments including additional multi-gigawatt opportunities. I think that's a the other reason the stock is is rallying is obviously the AMD shortage, but more importantly, it seems like they do have some other big customers that are willing to kind of go with that multi-gigawatt.

Who? Maybe we'll learn more on during the July event, hopefully. So, I mean, overall, this continued to prove the core elements around CPU server shortages. You got Micron getting a pump because I think Lisa Su mentioned again that memory is tight. Intel obviously getting a pump because of the server CPU shortage thesis as well.

And I mean, whether it's right or wrong, Nvidia not really getting any momentum, the Google news and AMD's growth obviously not bearish Nvidia, but being perceived as not exciting for Nvidia, potentially a challenge to their gross margins and their ability to capture market share. So, obviously Jensen's going to have to put up some really good numbers as well, but I think the theme is small market cap, big growth.

Well, how how is how is Google's Anthropic news bearish for Nvidia's gross margins? I mean, again, I don't think that's the case, but just general TPU growth, I think it's people to believe that that's a replacement Yeah, let's not forget though, Google is one of the largest purchasers of Nvidia's products.

100%. It's just you can't deny that you don't have to be a rocket scientist to be like, "Well, if Google's selling more of these things and the other companies aren't buying more of Nvidia's things, even if Google's buying more of Nvidia's things, there's some market share that might end up being displaced."

The the the whole market, I mean, I've got a handful of Nvidia shares, so I'm talking here as a big mogul, but the the market is is is very I mean, I I don't get it cuz Jensen said it in in the recent podcast with Yuval Cashes, right? He's like, "TPUs, who's buying TPUs? It's It's mostly entropic. It's mostly entropic or it's Google for Google or Amazon for Amazon.

Everyone else on this planet is probably going to buy Nvidia or AMD. And yet for some reason the market's like, "Oh, headlines. Nobody's buying Nvidia GPUs anymore." No, heck, these big tech companies are spending hundreds of billions of dollars on Nvidia GPUs. They're also spending, of course, on TPUs.

Plus, like like Tanner said before, if Jensen comes out and says, "Okay, look, Grace and Vera uh CPUs and Grock, it's already Wait. No, wait, wait, wait, real quick. AMD new highs, 399.76, 77. Yeah, Tanner's been interrupting everyone. Well, I'm sorry. I don't want to miss the the bell, bro. And he And he doesn't even own it.

He doesn't even own it. So, go buy one share at 400. Yeah, you don't even own it. Put put a buy order at 400. I'm here for the content. I got to make sure no one misses this. No, we'll ring the bell, but we Neil was cutting. Neil, finish and then we'll ring it. Um yeah, so basically Jensen needs um He doesn't need to do anything, but for for the sake of Nvidia's stock and whoever wants it to go to 250, 300, if he starts talking about, "Okay, the the uh Grace and Vera CPU and Grock, that business is already, I don't know, tens of billions of dollars on annual run rate or whatever, probably plus." CPU, he starts mentioning CPUs and billions of dollars, I think the market suddenly will flip around and say, "Huh, actually, uh maybe Nvidia is worth paying attention to and and clearly some people are buying Nvidia GPUs again." But, for now, that the market is just really missing the point here.

And you I mean, like Tanner said. Go ahead, Tanner, before I go. Go ahead. No, no, no, no, no. You go ahead. I was going to make some covered call joke about how some people thought they were safe at 400, but you go ahead. I would like to apologize, by the way, I'm like I'm ready to ring the bell 400, but we have not actually touched 400.

We were very close when Neil stopped, we got to 399.98. I think we'll get there right now. Why is it me? I I told you to buy one share. Told you to buy one share at 400, you would have been that extra that extra push. Liquidity exit. It's true, it's true. Okay, Jose, go ahead. I don't know, I forgot.

I was just going to say Anthony is still a goat. I mean, I like AMD, obviously, great position, but just is still going to come out with great numbers. And Nvidia has the NDL 72, the Vera Rubin 72. All those comes with what? GPUs, CPUs, the whole it's the whole structure, right? So, um I wonder if during the upcoming earnings call if we start to get questions of like, "Hey, what how big is your CPU market, right?" It's like more more understanding from from Nvidia's side, but uh uh on AMD, um strong here, data center, and that's all that matters.

Um the one thing that I did like is average selling price. Uh they mentioned it's not the biggest sell win just yet for their server CPUs. Uh it seems like they really want to take this opportunity to continue to grow market share, and I think that's a smart move on their end uh to make sure they continue to get more market share because then that becomes a stickier business uh in the long term of things.

Yeah, I agree, and I also think to your point and to Tanner's point, like uh I don't think TPUs are taking away market share from Nvidia. It's the but in this market, it's all about perception, right? Until the earnings change the perception. The perception right now is that Nvidia's losing pricing power or market share.

It's all these other different players that are I mean, I I I don't know how else you could explain why everything's rallying besides it. So, Jensen, once again, is going to have to do what he has to do on earnings and prove everybody wrong. Uh but you know, if that's the perception right now, obviously that's going to be how the stock reacts to it.

By the way, software is also dumping after hours. Uh Palantir going down even more, ServiceNow going down even more, Salesforce going down even more, all of them down about 1 to 2% after hours. So uh I think people are just saying screw it, I'm dumping my software for AMD or for Intel or for ARM or for Micron.

Which makes no sense, but again, it's the perception like you mentioned, right? Okay, so that's the end of the stream. I think we ring the bell regardless. WeBull showing me 399.98. That's sad. I would love to actually have it be a 400 for the ring. I'm sure we'll get there tomorrow. Uh but I don't know how long they're going to make us wait to see those extra 20 cents at this point.

And who knows, it could open up and fly past 400, so Everyone is saying wait now. I think we see some some some obviously price target increases tomorrow, so everybody's going to be I mean, just a 10 increase on CPU is is enough, but they also increased I think to 10 on GPUs. I think they went from 60 to 70.

I forget what was the actual numbers, but I think on the GPU side, they also increased their TAM. So a lot of rework on numbers are I think are going to happen. All right, everyone's saying don't ring it, so we'll wait till tomorrow if we actually get Usually we don't even ring it ever for after hours moves cuz I don't technically count those as moves.

Like when the market opens, you have to see if the price Like even your brokers don't count a 52-week high in the after hours or in the pre-market as an actual 52-week high. So we'll wait till tomorrow if we get 400. Look, overall it was a good quarter. Stocks loving it, markets loving it, AI infrastructure is the theme, semis is winning, software's not, fintech's not, Uh Nvidia's not.

We'll put Nvidia in its own category. And organ transplants are not. Like if this is the market of you are either in AI infrastructure, data center, hardware, memory, photonics, chips, CPUs, or you're not really making meaningful amounts of returns. And that's just how the market is right now. Do you think it flips once an Entropic and Open AI goes public and people realize what's inside those businesses?

I think eventually Microsoft and Meta will not be spending the capex they're spending, and that's when those businesses at these multiples, people will look back and be like, "Oh my goodness." Cuz when Microsoft has an extra couple hundred billion per year, now maybe that takes four or five years to get there, but it'll be priced in two years before, right?

But once that is obvious to the street, that free cash flow multiple will look like like like like like what are we doing here? How is Microsoft How is Meta trading at these levels? Uh Google and Amazon have chip businesses, right? Which is why I think they outperformed Microsoft and Meta, but I don't know when it flips.

I don't know when I don't know when software like I don't I don't know when that easily happens. Just shoutout to a comment I just saw there from M1 Bobby. Lisa didn't wake up a loser. That thing had me dying. Yeah, I was just laughing at that. Like to your point, I listened to the call for the past two quarters.

This one 100% she had that kind of tone of just like, "Where the [ __ ] Like I know you guys have not really loved our growth over the past couple of quarters, but we are here. It's the age of inference, the age of CPUs." And it's hard to kind of deny what we're doing, even if Stacy will try to do it.

I guess you're not going to answer my question. That's the question? What was the question? I wonder what her price target is tomorrow on uh What if you interview Ryan Cohen? Maybe he will also not answer his question. Hold on. Stacy has a Wow, he has a 265 target. Yeah, he's he's just like trying to throw a bearish look.

Bro, and he reiterated that 20 days ago when Nvidia was above that I mean like he is does not believe in this run at all. People said 400 by the way. I'm just reading the chat. I don't know. Did we hit it? Chat says it. Is it there? It is officially there. 400 dollars a share for A M D. Congratulations, everyone.

It's awesome. It's going higher, too. 401, it's not stopping. Jose's karaoke just got even more exciting. Yeah. He's going to go on vacation from his vacation. No, though. Go back to work soon. What work, bro? What work? You just sit there and collect money. You're making 12% a day. Just relax. Jose will be done with YouTube pretty soon, bro.

He's going to be like, "Guys, it was a good run." But I can He's going to change his newsletter to chips happened.com. 402. Well, That's not funny. There it is. You know, a lot of people were questioning, "Can Lisa Su pull it off after this run?" And she pulled it off. 13.5% after hours. 403. You can't end the stream with just sheer candles rocketing into the sky.

We have to sit here till the rally's done. We might be we ain't I don't know if this rally's getting done anytime soon. Yeah, happy Cinco de Mayo. There you Jose, are you in Mexico? Is that Is that where you're on vacation? No, I'm staying kids right now. Okay, got you. Got you. Okay, cool. Thank everybody for being here.

402 400 after hours for AMD very bullish the entire semi ecosystem. This bull market continues to be very strong and have legs behind it in the right sectors. Obviously not a bull market everywhere, but I think that is the big difference from now in 2025 to 2024. Everything went up last year. Everything went up in 2024.

This year you got to be selective, but if you're in the right names this market has been very very friendly for you. How are you about to end it? We're hitting new high We're at 404. We're for at 405. I don't I I mean there's nothing I can say, but Strap in, brother. It's going to be a while. You know what?

I got to go eat. You don't have to eat. Jose is like I got to go count my gains, bro. I don't need to stay here for this. Yeah. Um no, but but tomorrow I mean it looks like it could open above 400 and if it does, I mean it's going to open what? This is up $40 at $50 after hours. So, they're going to be opening at a 630 billion 620 billion No, 630 billion dollar market cap.

They're 580 right now. I I apologize guys. It the the the screen share is completely up to him. So, I have the There we go. I will keep this going. I Jose, your private chef will cook you your dinner whenever you want. You don't have to be there at a certain time. All right, the surf and turf is waiting for you.

40681. This is real gains, guys. For the people who held it. I like Tanner, you're so excited and you don't even have this [ __ ] Yeah, because well, dude I I I still think it's an interesting story. We have got a 600 billion dollar company up 14% in the after hours. Like that's unbelievable. That is wild.

And and it's it's a story on the chips stock or or chip stocks. So, well, this is AMD today. I think it's bullish the AI narrative in general and the commentary that Lisa Su shared is across the CPU providers, the GPU providers. It's good for the mag seven names. It's good for Nvidia. Whether the market wants to believe it or not, it's good for Nvidia.

Um and So, yeah. I I I I'm not mad or anything. I I love that retail's making money. I'll have my day. You know? Yeah. It's just not today. Yeah, also look to I mean, dude, you were early in video 2018. There's I mean, anyone who's that early has nothing to complain about even if they're not an AMD.

It's everyone's winning. Everyone's winning, right? Oh, yeah, dude. I'm not I'm not worried about it. It This is a great day, honestly. The the commentary is good. But uh looks like the the rally uh a few moments later We got to end stream before that happens. Yeah. All right, guys. That is it. Thank everybody.

Appreciate it. See you guys tomorrow on the market open and we will keep going from there. Bye, buddy. Have a good one. Clock them.