AMD (AMD) BofA Securities 2024 Global Technology Conference summary

Key product and technology announcements

• Introduced Ryzen AI 300 Series processors for ultra-thin notebooks, integrating CPU, GPU, and powerful NPU on a single chip, meeting Microsoft AI PC requirements and outperforming competitors in AI performance.

• Previewed Gen 5 EPYC CPU (Turin) with up to 100 cores, extending leadership in server performance and efficiency.

• Expanded GPU roadmap with annual cadence, including MI300 (fastest revenue ramp), MI325 (288GB HBM3E memory) in 2024, MI350 (CDNA 4, 3nm, 288GB) in 2025, and MI400 (CDNA Next) in 2026.

• MI300 series offers leading inference and competitive training performance, with memory capacity 1.5x that of Blackwell B200.

• End-to-end AI solutions span from devices to edge and data center, addressing broad AI demand.

Financial outlook and supply chain

• MI300 forecast for 2024 raised to over $4 billion, driven by strong customer engagement and design wins.

• Supply chain remains tight, especially for memory, but close collaboration with suppliers is ensuring adequate support.

• Q4 product launches will contribute more meaningfully to revenue in 2025.

• Data center gross margin is higher than corporate average; product mix shift will support long-term margin improvement.

• Gross margin guided at 53% for Q2, with expectations for further improvement in the second half of the year.

Market positioning and strategy

• Multi-year planning with hyperscale customers ensures stable, long-term demand despite competitor launches.

• Significant progress in ROCm software enables rapid customer deployment and competitive positioning in AI GPUs.

• Focus remains on merchant market opportunities, with flexibility to address custom ASIC demand as the market matures.

• Confident in addressing a $400 billion AI market opportunity by 2027-2028, with accelerating roadmap and growing demand.

• x86 ecosystem and backward compatibility seen as key advantages over Arm-based PCs, with performance and ecosystem as main differentiators.