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CLAIM #5185 · Advanced Micro Devices Inc (AMD) · 2023Q3 earnings call · Oct 31, 2023 · due Jun 30, 2024

I think going forward, the pace of Client segment improvement will moderate, but it will continue to drive incremental gross margin improvement in Client segment.

Jean Hu · CFO

PENDING
graded after results covering Jun 30, 2024 are reported

In context

ing progress because I imagine some of that progress is pretty positive underneath. Thanks. Jean Hu: Yeah, Matt. Thank you for the question. Yes, there are a few puts and takes, especially in a mixed demand environment. So let me just comment on Q3 first. We are very pleased with our gross margin expansion sequentially, 140 basis points. As you mentioned, the Embedded segment, revenue actually declined double-digits sequentially. There are two primary drivers. The first one is definitely Data Center grew 21% sequentially, which should provide a tailwind to our gross margin. Secondly, as we go through the inventory correction in PC market, we did encounter some headwinds in the Client segment gross margin. And in Q3, we saw very significant improvement with our client segment gross margin. I think going forward, the pace of Client segment improvement will moderate, but it will continue to drive incremental gross margin improvement in Client segment. So that really is why we are able to drive sequential growth in Q3. And in Q4, I would say the major dynamics is with a very strong double-digit growth in Data Center business, we definitely have the tailwind, which more than offset the Embedded segment decline sequentially double-digit again. I think going forward, it's really mix, primarily mix is driving our gross margin, but we feel pretty good about second half next year when we can expand the Data Center significantly and especially, Embedded segment start to recover, we should be able to drive more meaningful gross margin improvement in second half. Operator: And the next question comes from the line of Ross Seymore with Deutsche Bank. Please proceed with your question. Ross Seymore: Lisa, I had a question on the MI300 side of thin

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SEC filings for AMD · Claim quote is verbatim from the 2023Q3 earnings call.