Good points — AMD's segments are nicely diversified, counteracting their cyclical behaviour.
Regarding Embedded, it was pointed out that customer engagement has been remarkable since the acquisition of Xilinx. As we know, these design wins take time, but we should expect to see material and sticky high-margin revenue materialise down the line. There is likely to be a rebound in the 5G/networking sector as well, especially with AI at the edge taking hold.
Console refreshes, and then the next generation down the line, should reinvogorate the Gaming segment. AMD looks well positioned to remain a key player in this sector.
I know you follow Client pretty closely, and there is a lot of excitement about the imminent "Zen 5" introduction (which should continue with "Zen 6", I suspect). With strong products and the "AI PC" drive and overall refresh cycle, there should be a lot of rebound left and new growth to be had in the Client segment.
And, of course, Data Centre is going to grow like mad, driven by AI. Not just GPU accelerators, but I suspect we'll see traditional CPU servers increasingly benefit as well, as AI starts to use traditional compute for tools.
It is already happening with the latest models. Like with Claude and ChatGPT, you can now upload files to Bing Copilot, have it analyse it, after which it will write a Python script, execute it in the background, and then serve you the results as a file via a download link. I have yet to explore the full potential of this. |
