CLAIM #5375 · Advanced Micro Devices Inc (AMD) · 2024Q3 earnings call · Oct 29, 2024 · due Dec 31, 2025
“On the gross margin side, once we continue to ramp the revenue, we do think we'll have the opportunity to continue to improve gross margin.”
Jean Hu · CFO
In context
“ll be below corporate margins. Could you help us maybe think of some framework on how those gross margins for Instinct might get to parity with your corporate business? I know you probably won't give us a revenue level or a time frame, but maybe you could help us frame in some manner that we could try and understand it. Jean Hu: Yes. We are very pleased with our overall revenue ramp of our Data Center GPU business, and our team not only support the revenue ramp and continue to improve the gross margin. Overall, it's below corporate average. And when you think about it going into next year, of course, our top priority right now is to really focus on to address customer demand and provide the TCO benefit really increase significantly our market presence and drive substantial revenue growth. On the gross margin side, once we continue to ramp the revenue, we do think we'll have the opportunity to continue to improve gross margin. When you think about it, this is the data center business, over the -- in the longer run, longer term, it tends to be better than corporate average. We'll take some time to get there. But when you look at our Data Center segment performance, we more than doubled the revenue year-over-year, but we tripled the operating income year-over-year. So, I think that's how we are thinking about it is really to drive the long-term growth and get the market presence at the same time, drive gross margin up. Operator: And our final question comes from the line of Thomas O'Malley with Barclays. Please proceed with your question. Thomas James: Lisa, I just wanted to ask on mix the MI300 platform into Q4. Obviously, you're launching the MI325 series. Should we expect a significant contribution the new pro”
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SEC filings for AMD ↗ · Claim quote is verbatim from the 2024Q3 earnings call.