>>> AMD; Advanced Micro on Conference Call

Advanced Micro on Conference Call (14.11   -0.05)

  • Have seen elevated demand from crypto; Working to replenish GPUs depleted from this; Priority remains the gaming market. Did not have crypto in its forecast and are not counting on it to be a long term driver at the moment.
    • See strong demand in graphics for Q3. 
    • Helps that gaming will be seasonally stronger.
    • Crypto currency component for overall demand but strength remains in the gaming.
  • Investing heavily in 7 NM
  • Client computing revenue increased by strong double-digit percentage from year ago, driven by significant ramp and strong sell through of our Ryzen CPUs in the first fourth quarter of sales.
  • In June, began the adoption of our GPU architecture with the launch of the Radeon Vega frontier.
  • First full quarter of Ryzen in desktop channel. 
  • Sequential revenue gains were primarily based on higher semi-custom product shipments due to seasonality. In addition, reached an important milestone in the quarter, delivering initial epic server revenue; expect an additional 20 epic's platforms to be available in the second half of 2017.
  • Will talk more about margin progression in Q3 call; Progression is helping the Q3 guidance. 
  • September guidance- Vega was included in the Q3 guidance.
  • Free Cash Flow was lower due to wafer purchases for 2H17; Says FCF will be up in 2H and positive for the year.