CLAIM #5352 · Advanced Micro Devices Inc (AMD) · 2024Q3 earnings call · Oct 29, 2024 · due Dec 31, 2025
“At the same time, we are also seeing our client business expansion nicely. Client business today is more focused on consumer side, which tend to be below corporate average. That's something headwind we'll deal with.”
Jean Hu · CFO
In context
“tely 54% in Q4. In general, when you look at 2024, our gross margin improvement has been primarily driven by the mix, especially Data Center business continue to be the strong growth driver of our business, it's accounting for more than 50% of our revenue mix, that helps us to improve gross margin. Going to 2025, we're not going to guide specifically. But as you mentioned, the outputs and takes that will help us going forward I would say first is, going forward, the largest growth driver is our Data Center business, both the CPU side, the GPU side, and you are absolutely right, we see our Enterprise Server business continue to expand. That will be a tailwind on gross margin side. And secondly, Embedded business is recovering and gradually, but that will also help us with our gross margin. At the same time, we are also seeing our client business expansion nicely. Client business today is more focused on consumer side, which tend to be below corporate average. That's something headwind we'll deal with. And lastly, I would say our team has done a great job to continue to improve operational efficiency. When we scale the Company next year, you can see we're going to benefit from economics of scale to continue to drive our operational efficiency to improve gross margin. Operator: And the next question comes from the line of Aaron Rakers with Wells Fargo. Please proceed with your question. Aaron Rakers: Yes. Thanks for taking the question. I'll do two as well. I guess maybe building on the latter point that you just made, I'm curious of how you would characterize your supply chain having evolved now talking about $5-plus billion. How do we think about what you've been doing on the supply side, given the lead times, the production cycles of these MI300 and MI325 GPUs as we look out into 2025”
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SEC filings for AMD ↗ · Claim quote is verbatim from the 2024Q3 earnings call.