Lisa Su

“Looking more broadly, the strategy we have been executing over the last few years is now delivering strong results.”

“Our record results mark another clear step up in AMD's financial performance and demonstrates the strength of our product portfolio and execution.”

“Looking ahead, agentic AI is creating a new growth vector for server CPUs, spanning high-frequency AI host nodes, high-density agentic servers and general-purpose cloud and enterprise workloads.”

“That's wafers, that's back-end capacity, that's substrates, that's all of the components to raise the overall capacity for servers.”

“The key thing is to work very closely with our customers as they're planning their build-outs overall.”

“Growth was broad-based as we won large deployments with leading financial services, manufacturing, telecom, retail, and technology companies.”

“Segment revenue grew 6% year-over-year to $3.8 billion.”

“Together, these commitments broaden the group of leading AI companies and cloud providers building their next-generation infrastructure on AMD.”

“So I think we'll have a good diversity of customers as we go through the next couple of quarters.”

“We do recognize in this memory environment though, every customer is looking at how to optimize their memory footprint.”

“So I think from a Helios ramp standpoint, we're expecting a very significant ramp over the next couple of quarters.”

“So ensuring that we have the entire -- our silicon CPU, GPU networking components that go into it, all of the Helios components, I think we feel very, very good about that part of the supply chain.”

“What we're seeing is when we go into Venice, the workloads actually expand.”

“Well, Jim, I don't think we see anything that would give us pause about hitting the targets.”

“And so we are working with each of our customers on their data center plans and ensuring that we are meeting their data center plans.”

“Revenue more than doubled over year driven by strong demand for Instinct accelerators.”

“We now expect the data center AI accelerator market to grow more than 45% annually to approximately $1.4 trillion by 2030.”

“And I think there's a clear desire on the part of everyone in the ecosystem to bring on more AI compute faster.”

“MI355x adoption continued to broaden as leading AI companies scale deployments across a growing range of inferencing and training workloads and cloud providers expanded MI350-series availability.”

“And in that case, we would address the memory footprint as you might expect.”

“So our view is we will -- we see the growth in 2026 on a year-over-year basis certainly there.”

“The partnership includes a multiyear joint engineering collaboration using Claude to optimize workloads for Instinct GPUs and accelerate ROCm software development.”

“At our advancing AI event, we launched Helios, our rackscale AI platform combining EPYC Venice CPUs, MI450-Series GPUs, Pensando networking and ROCm software.”

“And I believe depending on how things play out, there may be opportunities for that growth to go higher as we get through the next few quarters.”

“We also continued to expand our portfolio, introducing Ryzen AI embedded x100 processors for demanding real-time edge AI workloads and the Kria AI robotics platform for physical AI.”

“For AMD, this larger opportunity, combined with the strength of our portfolio and growing customer visibility is creating a steeper growth trajectory for our data center business.”

“And yes, the server CPU we're saying is more than 70%, which we think at this point is a very strong statement just given where the business is.”

“But both businesses are very significant drivers of our 2027 growth and beyond.”

“Looking to the second half of the year, we are planning for a softer PC market as higher memory and component costs weigh on demand.”

“I mean we're seeing just very strong demand from an overall market standpoint.”

“As it relates to our client business in 2026, I think our first half performance has been very strong.”

“We are also working closely with the leading AI labs, including OpenAI, Anthropic, Meta and others to co-optimize ROCm for their models with the improvements benefiting the entire AMD ecosystem.”

“And what we have been working on very diligently over the past couple of quarters is as soon as we saw the significant inflection point in server demand, we've been working across our supply chain.”

“Built on our all-new Zen 6 core and 2-nanometer technology, Venice extends EPYC leadership in performance and efficiency, delivering more than twice performance per watt of leading x86 CPUs, and up to 3.3x the performance per watt of leading ARM-based CPUs.”

“And that gives us, let's call it, strong confidence in what we've guided for the data center AI business so far.”

“We expect MI500 to deliver the largest generational leap in instinct history putting us on track to increase inferencing performance more than 2,000 times in just 4 years.”

“We entered the second half with strong momentum across our businesses.”

“And as a result, as we ramp the large strategic customers that we have on Helios in 2027, you would expect substantial growth in that business in 2027.”

“Revenue increased 19% year-over-year to $977 million, our strongest growth in more than 3 years.”

“So if you just look at our Q2 performance, when we said we grew over 70% in both cloud and enterprise, we actually had double-digit growth in both units and ASPs, but it was actually more unit.”

“The data center AI TAM is certainly larger.”

“And although we are expecting that the market will decline in the second half, the market has actually held up better than most people would have thought.”

“Customer pull for Helios is very strong and tracking ahead of our initial forecast.”

“Our overall embedded portfolio is outgrowing the market and gaining share, and our embedded semi-custom engagements are expanding.”

“And in Q4, it will be higher than that.”

“To build on this momentum, Dell, HP, Lenovo, Asus and others launched a broad portfolio of new commercial PCs powered by our latest generation Ryzen AI Pro 400 series processors.”

“Our embedded x86 business grew significantly in the quarter as hyperscalers and networking customers increasingly adopted our CPUs to power critical networking and control plane functions in the data center.”

“Across a broad range of inferencing workloads, Helios delivers up to 15% more throughput at the same rack power and up to 30% more tokens per dollar than the competition.”

“And what we're really doing is matching to when the larger data center build-outs are ready.”

“As a result, we are tracking materially ahead of the long-term financial model we shared at our Financial Analyst Day last November.”

“Our sixth-gen EPYC Venice family is purpose-built for this expanding range of workloads and delivers one of the largest generational performance gains in EPYC history.”

“In server CPUs with very strong customer demand and improved supply, we now expect server revenue to grow more than 80% year-over-year in the second half of 2026 and more than 70% for the full year 2027, off a much higher base.”

“Demand was also strong for our Ryzen AI Halo developer systems, which went on sale in the quarter.”

“I think what makes our approach a little bit special and different is that because we're using the chiplet technology, we actually ramp in fewer wafers in the new node.”

“So the diversity of the business -- and there are additional customers.”

“And so we would expect that the 2027 server supply situation should be better than '26.”

“As we get into 2027, the demand is better forecasted.”

“Against this backdrop, we expect our client business to perform better than the market, driven by the strength of our Ryzen portfolio and growing commercial adoption.”

“Embedded x86 is becoming a significant growth driver for the segment.”

“In client, revenue increased 23% year-over-year to $3.1 billion, driven by record mobile processor revenue and continued share gains.”

“There are certainly both unit and ASP growth.”

“Helios is now in production with initial shipments on track to begin later this quarter and ramp through the fourth quarter and into 2027 to meet very strong customer demand.”

“There is a range, and the range will depend on the ability to bring on more capacity in a timely fashion.”

“But I think our portfolio and our rising content in enterprise are very positive for our client mix.”

“We now see the overall market for high performance in AI computing growing approximately 40% annually over the next several years, approaching $2 trillion by 2030, and we expect to grow well above the market.”

“Both server and the data center AI will grow nicely within that.”

“We introduced ROCm.ai, our new AI-assisted development platform for AMD GPUs last month.”

“We gained x86 server revenue share year-over-year as customers expanded deployments of both fifth-gen EPYC Turin and fourth-gen EPYC Genoa families.”

“But as we go out over the next 3, 4, 5 years, we think that's the largest growth in the server market.”

“In data center AI, the growing number and scale of Helios and MI450 Series Instinct deployments position the business for significant growth in the second half of the year with growth accelerating in 2027.”

“So I think AI PCs will become more important.”

“We feel very good about being able to satisfy what we just talked about, which was over 70% year-over-year growth.”

“Taken together, we now expect data center segment revenue to more than double year-over-year in 2027.”

“So from my perspective, I think all of that is work that's being done.”

“And the well over 100% comes because the data center AI business is going to be well over 100% just given the strength of our strategic customers, the ramp of Helios and all of the things that we've talked about.”

“But there are some workloads, let's call it, medium-sized models that may not get as much of a benefit.”

“So whether you're talking about per core performance or you're talking about overall socket performance and that gives us a very strong position across general purpose agentic-AI and also the head nodes for the AI accelerator business.”

“I particularly think that local AI will continue to become a larger and larger piece of how people experience AI.”

“So I remain optimistic about the PC market as an important way for us to reach a broader set of users and our ability to grow ahead of the market.”

“And as we go through the next couple of quarters, we expect to continue growing Helios quarter-by-quarter.”

“It's actually a real family of CPUs that you need.”

“Design win momentum also remains very strong.”

“More than 3 million models now run out of the box on AMD, the leading open models launched with day 0 support for Instinct and open source contributions to ROCm have increased more than tenfold over the past year.”

“Data center revenue more than doubled year-over-year and now represents 58% of total revenue, up from 42% a year ago, reflecting the rapidly expanding scale of our server and data center AI businesses.”

“Commercial adoption continued to expand in the quarter, with Ryzen Pro sales growing more than 50% year-over-year as we close new wins with large health care, technology, automotive, and financial services companies.”

“We've said Q3 is the very beginning of the ramp.”

“We are still in the early stages of a multiyear AI adoption cycle as deployments grow across a broad set of markets and workloads, driving demand for more compute and creating a clear path to significant revenue growth and earnings power in the years ahead.”

“Demand was broad-based with strength across networking, aerospace and defense, test measurement and emulation and communication customers.”

“More than 230 fifth-gen EPYC platforms are now in market from HPE, Dell, Lenovo, Supermicro and others, our broadest enterprise portfolio to date.”

“Taking a step back, the overall data center market opportunity is expanding far more rapidly than we projected just 6 months ago.”

“In gaming, revenue declined 31% year-over-year to $779 million, primarily due to lower semi-custom sales at this stage of the console cycle.”

“In 2027, our next-generation platform combines MI500 series GPUs, Verano CPUs and Pensando networking with expanded scale-up domains in both copper and optical-based interconnects.”

“And we know a bunch of our customers are very, very happy with what that returns in terms of performance.”

“Customer engagement on MI500 is very strong with multiple customers working closely with us as they plan their next-generation AI infrastructure.”

“So there are more workloads that are going to be run on the next generation of EPYC than are run on the previous generation.”

“ROCm has reached an important inflection point with the performance, capabilities and developer experience customers need to deploy AI in production at scale.”

“As we go forward, certainly, looking at our Q3 guide our Q4 guide, we see very strong growth across both server and data center AI.”

“That's one of the reasons we can raise the second half guidance.”

“There is very good visibility into HBM allocation for what we expect to deliver in 2027.”

“ROCm.ai let developers use today's leading coding agents, including Claude, Codex and Cursor to create, port and optimize code for Instinct, making it significantly faster and easier to bring new models and workloads to AMD.”

“And in terms of the revenue per gigawatt, I think we've said double-digit billions.”

“And we expect the server CPU market to grow more than 50% annually to approximately $220 billion by 2030.”

“We are also saying that we will grow greater than from an overall revenue standpoint for the company.”

“As AI moves into production across a broader range of applications and workloads demand for both accelerators and CPUs is growing well above our prior expectations.”

“Anthropic will deploy up to 2 gigawatts of MI450 series GPUs in Helios with deployment of the first gigawatt beginning in the first half of 2027.”

“And to make it even easier for developers to build and test large AI models locally, we are partnering with Hugging Face to include 1 year of Hugging Face Pro with every Ryzen AI Halo system beginning later this year.”

“CJ, I think what you're hearing from us is that your data center AI number is probably too low.”

“We are working very closely on the data center operators and ensuring that we have good visibility into what's going on there.”

“Q4 is a step-up, and then Q1 will be a further step up and we'll ramp as we go through 2027.”

“And look, as we look at this, it's a progression over the next couple of quarters.”

“We are tracking towards another record year with more than $18 billion of new design wins, led by major wins with networking, data center, communications, tests, and aerospace and defense customers.”

“That expanding footprint is translating into growing adoption of EPYC in the cloud with health care, financial services, media and technology companies adding tens of millions of instances last quarter.”

“We now expect revenue to grow substantially above our prior target of greater than 35%, and we expect to significantly exceed our $20 annual EPS target within our strategic timeframe.”

“Revenue increased 50% year-over-year to $11.5 billion, driven by significantly higher sales of EPYC, Instinct, Ryzen and embedded processors.”

“But as we go forward, you should expect both unit and ASP growth.”

“In July, we introduced our next-generation Ryzen AI Halo platform powered by our new Gorgon Halo processor, featuring an industry-leading 192 gigabytes of unified memory and can run models with up to 300 billion parameters.”

“So look, we are certainly seeing a very, very strong compute market demand over both the data center accelerator as well as the server CPU.”

“We delivered another outstanding quarter with record revenue and profitability as adoption of our leadership products continued to expand.”

“We are still in the early innings of a multiyear AI adoption cycle and the opportunity ahead is enormous.”

“Fifth-gen EPYC Turin now powers nearly 1/3 of the more than 1,600 EPYC public cloud instance types available globally as providers broaden their offerings with new database storage and AI workloads.”

“So we do see a very significant ramp into 2027.”

“Looking beyond Helios, we plan to launch a new rack scale AI platform every year with each generation delivering significant performance, efficiency and TCO gains.”

“And we believe the overall segment will grow by over 100%, so we'll more than double due to the data center AI ramping.”

“Venice is in production now with every major OEM on track to launch platforms and the leading cloud providers planning deployments beginning later this year.”

“And that's what gives us the confidence to say that we can grow substantially ahead of the market given the product positioning.”

“I would say the server CPU supply chain is tight right now, and it has been tight for the first half of the year because much of this demand was unforecasted.”

“We are very happy with our strategic anchor customers in OpenAI, Meta, and Anthropic.”

“So as we look at the overall TAM, first of all, it's a very exciting time in the compute market.”

“When you look at every part of our business, whether it's server CPU, data center AI or our embedded business and our PC business we see them all benefiting from the AI tailwinds.”

“And we're seeing much more capacity coming in line in 2027 that supports the growth that we've been talking about.”

“And as we go into 2027, I think we have a strong product portfolio that is coming on board to address not just the traditional notebook and desktop markets, but also as you think about a more AI-centric PC experience like what we have been talking about with the Ryzen AI Halo.”

“And the key here will be continuing to work with our partners as they ramp because there's a demand for a lot more compute, and we would like to satisfy that demand.”

“From an overall data center standpoint, I think we have given a little bit of color on 2027, we believe that the server CPU portion of our data center business will grow by over 70% year-over-year off of a higher base.”

“The way I would describe it in terms of dynamics is we have been -- we have very strong demand across all of our customers in hyperscale and enterprise.”

“In summary, we delivered record revenue and profitability in the second quarter, reflecting our strong execution and the growing adoption of our leadership products.”

“ROCm.ai delivers more than twice the training performance and won 3x the inferencing performance of ROCm 7 across a broad range of models.”

“Data center revenue grew 107% year-over-year to a record $6.7 billion, driven by strong demand for EPYC processors and Instinct accelerators.”

“In enterprise, we delivered record sales in our fourth consecutive quarter of record sell-through as on-prem adoption accelerated driven by the leadership performance and TCO advantages of our EPYC portfolio.”

“At the same time, AI is driving demand for dramatically more compute across all of our markets.”

“In cloud, hyperscalers continued expanding EPYC across their internal infrastructure and public cloud offerings, including AWS, Microsoft, Google, Oracle and others.”

“The way I would describe it is we have supply to more than meet the guidance that we've talked about and the upside potential is there.”

“Customer demand for Venice is stronger than for any prior EPYC generation, and we expect to continue growing market share across cloud and enterprise in the coming quarters.”

“In addition to our multi-generation gigawatt scale deployments with OpenAI and Meta, we announced a new strategic partnership with Anthropic.”

“And what I would say is we've worked with our memory partners for multiple years to ensure that we have a strong ramp in our business.”

“From our standpoint, Venice is absolutely leadership in all of the categories.”

“So look, Vivek, we're working very, very closely with our memory partners across the board on both our GPU, HBM memory as well as just the general memory for the systems across our data center business.”

“Microsoft will deploy Helios at scale on Azure for frontier model inferencing across Microsoft, its AI customers and Azure AI services.”

“So we're seeing server grow over 80% in the second half of the year-over-year.”

“And maybe back to Stacy's question without going into exact numbers, I think this notion of over 100% should consider be well over 100%.”

“So the way I view it is we are building sort of the entire supply chain.”

“And beneath that, I think in each one of the segments, we see an opportunity to grow above the market.”

“In server, we delivered our fifth consecutive quarter of record server CPU revenue with cloud and enterprise sales each growing more than 70% year-over-year, exceeding the outlook we provided last quarter.”

“So when you think about the types of CPUs you need for each of these workloads, you need sort of different optimization points.”

“We are seeing every day more opportunities with operators to accelerate some of that capacity, and that's much of the work that we're doing together with our customers and partners.”

“So when you think about the $220 billion TAM in 2030, we actually see this agentic AI or these agentic sandboxes being the largest piece of the TAM.”

“We believe we can grow in every one of those segments.”

“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.”