Lisa Su

“AMD is uniquely positioned to lead in this next phase of AI with leadership products across high-performance service CPUs and AI accelerators and the ability to optimize them together as fully-integrated rack-scale solution.”

“Together with our previously announced OpenAI partnership, these engagements position AMD as a core partner to the world's largest AI infrastructure builders with deep co-engineering relationships and multiyear visibility into large-scale deployments.”

“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.”

“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.”

“Our agreement includes a custom GPU accelerator based on our MI450 architecture, co-designed to support Meta's next-generation AI workloads.”

“Based on the demand signals we are seeing today and the structural increase in CPU compute requirements driven by Agentic AI, we now expect the server CPU TAM to grow at greater than 35% annually, reaching over $120 billion by 2030.”

“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.”

“Thank you, Matt, and good afternoon to all those listening in today.”

“So from that standpoint, I think we're very competitive.”

“We're clearly feeling like we're seeing significant share gain as we're going into our Turin portfolio that has ramped very nicely.”

“When we look at the full year, our commentary is we are planning for some demand impact in the second half due to the memory pricing.”

“We also strengthened our Radeon portfolio with updates to our FSR software that improved performance and digital quality across a broad set of gaming workloads.”

“So we believe that we will continue to grow on a year-over-year basis for the Client business compared to last year.”

“I think you're going to see people actually use x86 and ARM for many of the large hyperscalers.”

“And the key is the TAM is much, much larger than anybody thought.”

“We actually crossed over 50% of our revenue being Turin this quarter.”

“So that's CPUs, that's GPUs, that's the ability to connect to all accelerators as well as the ability to do customization for certain customers, and we've also talked about our semi-custom capabilities.”

“But I also think this is an area where we excel.”

“I think it's exciting to see CPUs growing greater than 35% to over $120 billion.”

“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.”

“On the software front, we continue to make strong progress with ROCm, improving performance, scalability and enabling customers to reach production faster.”

“And we saw the first signs of, let's call it, AI demand really pulling CPU demand last year, and that was the reason we updated the TAM to, let's call it, the 18% CAGR or approximately $60 billion.”

“So first of all, back to the -- when we think about CPU TAM, I mean we've always said that CPUs are very critical part of data center infrastructure, and that's been where we've invested.”

“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.”

“Customer demand is very strong with more customers validating and ramping platforms at this stage than with any prior EPYC generation, and we remain on track to launch Venice later this year.”

“And based on all of that and the scale of new customer interest, we see a path to really get to exceed our original targets of greater than 80% CAGR.”

“So when you put all that together, we're very excited about the larger TAM, and we're also very happy with the traction that we're getting.”

“At our Financial Analyst Day in November, we outlined the server CPU market growing at approximately 18% annually over the next 3 to 5 years.”

“And so from that standpoint, you should imagine that the majority of the growth is unit driven, and the ASPs are just really to help cover some of the inflationary pressures.”

“Shipments are on track to begin in the second half of the year, leveraging our Helios rack-scale architecture, which integrates Instinct GPUs with EPYC Venice CPUs to deliver fully optimized high-performance AI infrastructure.”

“And the way that comes across is as AI adoption scales, you need more inferencing.”

“However, we are planning for second half PC shipments to be lower due to higher memory and component costs.”

“And we thought through that, and we are absolutely optimizing across the various workloads.”

“This momentum is driving deeper, long-term customer engagements, including large-scale multi-generation deployments.”

“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.”

“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.”

“The way we look at it is we're developing a full compute portfolio.”

“More broadly, Instinct adoption continues to expand across AI native and enterprise customers for both training and inference workloads.”

“The Data Center AI was actually down modestly because of the China transition.”

“We're investing in R&D ahead of sales and marketing.”

“In Cloud, AI was the primary driver of growth in the quarter as every major cloud provider expanded their EPYC 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.”

“We're still shipping some Milan, but I would say that's come down over time.”

“At the same time, our Data Center business is inflecting with strong demand for both EPYC and Instinct products significant growth.”

“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.”

“But even in that environment, what we're focused on is ensuring that we continue to make good progress on the Commercial business and continuing to focus on the premium segments of the market.”

“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.”

“And so that allows us to just plan much better as we go forward.”

“In desktop, we strengthened our Ryzen lineup, including our latest X3D processors that deliver leadership performance across gaming, content creation and professional workloads.”

“And what we see going forward is as core counts increase, obviously, we will see ASP increase.”

“So in general, people want to use the newer products because they're just more efficient in every aspect from performance, from cost structure, from a power standpoint.”

“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.”

“I think if we look at Q1, it actually was a little bit stronger than what we expected.”

“Looking ahead, we expect demand for our Ryzen CPUs to remain solid in the second quarter.”

“We feel that there is tightness in the supply chain, there's certainly tightness in sort of data center build-outs, but we are confident in our ability to supply to the levels of growth that we're talking about and to exceed the levels of growth that we're talking about.”

“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.”

“So we expect that even in that situation, obviously, the vast majority of the TAM is still going to be, let's call it, data center GPUs as the primary accelerator.”

“So from our standpoint, it is all about ensuring that we ship what the customer needs.”

“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.”

“And even for those who are developing their own, they're still buying lots of CPUs in the merchant market for the reason that I just stated, which is unique different CPUs for the different types of workloads, and there's very high demand at the moment.”

“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.”

“As we transition into Venice later this year, we will expect Turin and Genoa to continue shipping, but there's a lot of goodness in going to the new products.”

“So we feel really good about the market as well as our opportunity to grow to greater than 50% share of that market.”

“Share gains accelerated year-over-year, reflecting the ramp of fifth-gen EPYC Turin CPUs and continued strength of fourth-gen EPYC processors across a wide range of workloads.”

“Venice is extremely well positioned, and we're working with customers right now on -- beyond Venice and what we're doing in those architectures.”

“Inferencing and Agentic 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.”

“MI450 and Helios, I think for significant large-scale deployments, and then many customers are also very engaged with us on the MI500 series and all of the opportunities there.”

“I think from a supply standpoint, we are very happy with our partnerships with the memory vendors, and we have secured enough supply to certainly meet and exceed our targets.”

“And with all of those sort of compute capabilities in our tool chest, I think we will be able to address, very effectively, a large portion of this market, including the low latency portion of the market.”

“Our client business continues to outperform the market, driven by Ryzen adoption and share gains, while in Embedded design win momentum and demand are strengthening across our expanded adaptive and x86 portfolio.”

“Looking ahead, customer pull for Helios is very strong, driven by our leadership performance, memory bandwidth and scale out capacity.”

“Growth was broad-based with every segment increasing year-over-year, led by 57% data center revenue growth.”

“But the places that we're investing in sales and marketing are paying off.”

“We did see desktops a little bit softer just given desktop is a more consumer-focused market.”

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

“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 EPYC CPUs, Instinct GPUs and Ryzen processors.”

“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.”

“But overall, I think we're feeling good about our opportunity to outperform the market and clients going forward.”

“No question, ARM is good architecture.”

“And in this case, it typically is our newer products, and we expect that to continue.”

“And what we've seen is all of the things that we believed in terms of Agentic AI and inferencing and all the CPU compute that is required, is just happening, and it's happening at a much faster pace.”

“And I think the encouraging thing is we're seeing a breadth of customers who are now very interested in deploying at significant scale MI450 series.”

“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 EPYC processors.”

“Costs have gone up a bit, and we are sharing some of that with our customers.”

“In Gaming, revenue increased 11% year-over-year to $720 million.”

“Revenue grew by a significant double-digit percentage year-over-year as adoption of Instinct accelerates across cloud, enterprise, sovereign and supercomputing customers.”

“So we are very excited about MI450 and Helios.”

“Helios development is progressing well with strong execution across silicon software and systems as we advance through key milestones.”

“And the good thing about this is we're now talking about '27 CPU demand, we're talking about '28 CPU demand.”

“Looking ahead, our sixth-gen EPYC 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 Verano, our first EPYC CPU purpose built for AI infrastructure.”

“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.”

“The corollary of that, the larger impact that we're watching is the impact on the consumer markets.”

“And as our customers come to us with more demand, we are getting more supply.”

“It's a complex ramp, but we're very pleased with the progress on the ramp.”

“So we feel very well positioned going forward.”

“In graphics, revenue increased year-over-year led by demand for our latest generation Radeon 9000 series GPUs.”

“We are seeing some mix shift in the client business.”

“So we guided data center Q2, up sequentially double digits, and that's double digits in both Server as well as Data Center AI.”

“We delivered an outstanding start to the year driven by accelerating demand for AI infrastructure across our portfolio.”

“So let me start with the broader question.”

“But you may choose to do optimization around inference, around low latency, around certain parts of the stack, whether it's decode versus prefill, I think that's very natural.”

“We also introduced the Ryzen AI 400 series and Ryzen AI Pro 400 series desktop CPUs, expanding our AI PC offerings across both consumer and commercial systems.”

“In Server, we delivered our fourth consecutive quarter of record server CPU revenue.”

“And then the largest piece of the growth is this Agentic AI piece, which we think is really stemming from all of the Agentic processes.”

“A key example is our expanded strategic partnership with Meta to deploy up to 6 gigawatts of AMD Instinct GPUs spanning several product generations.”

“I think we have very good visibility now into the deployments that are on track for 2027.”

“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.”

“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.”

“As inferencing and Agentic AI deployment scale, they are fundamentally increasing compute requirements, driving both larger scale accelerator deployments and significantly more CPU compute.”

“Obviously, when we talk to customers, we're talking to them about MI355.”

“So first of all, on the Data Center segment in Q1, the Server business was greater than 50% year-over-year as we said in the prepared remarks.”

“We're making very good progress in the commercial PC arena with our AI PCs.”

“Existing partners are expanding Instinct across a 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.”

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

“And so there's a lot of opportunity for different products to be successful in this area.”

“I think the client business has performed really well for us.”

“Revenue increased more than 50% year-over-year with sales to both Cloud and Enterprise customers each growing more than 50%.”

“In Enterprise, demand accelerated with record revenue and record sell-through in the quarter.”

“We also closed new enterprise wins across large technology, financial services, health care and aerospace customers.”

“Data Center revenue increased 57% year-over-year to a record $5.8 billion, led by strong demand for our EPYC CPUs and Instinct GPUs.”

“But as we go forward, I think we see strong growth in both segments.”

“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.”

“EPYC-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.”

“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.”

“And there as well, we're seeing our newer products do very well.”

“It has a place in the Data Center market.”

“By the way, I should also mention, in addition to what we're seeing in the cloud segment of server, we're seeing really nice strong pickup in enterprise.”

“And yes, I mean, it's a very exciting TAM.”

“The mix that we're seeing is the M&C or the Notebook business is actually growing, especially the premium portion.”

“So from a competitive standpoint, we feel very good about where things are.”

“In our latest MLPerf results, MI355X delivered strong competitive performance across the full suite with leadership results in multiple categories.”

“And when I say good visibility, it's visibility down to which data centers are the GPU is going to be installed in.”

“And the key is that we're continuing to broaden and widen the scope of both customers as well as workloads.”

“In summary, our first quarter results mark a clear step-up in our growth trajectory with accelerating momentum across the business.”

“And we have, in the Venice time frame, added an AI-optimized CPU with the Verano in addition to our throughput optimized and sort of cost optimized point.”

“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.”

“As a result, we are seeing both stronger near-term demand and deeper engagement with customers on long-term capacity planning.”