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To: neolib who wrote (35072)	1/30/2020 11:56:15 AM
From: engineer	Read Replies (1) \| Respond to of 72296

question: Why in the middle of a huge growth period where a lot of things are happening is Su taking on a Cisco board seat? I would think she needs to be highly focused on day to day strategic moves with AMD and not distracted by Cisco issues. Makes little sense unless she is just looking for more recognition.

To: neolib who wrote (35072)	1/30/2020 12:36:13 PM
From: Pravin Kamdar	Read Replies (1) \| Respond to of 72296

Neo, I figured that either you were dead, or in Costa Rica. re: I've just read the PR from AMD, and one thing that really jumped out at me is the use of "negligible revenue" from consoles in the current quarter. Is it really the case that a business segment which was cr $600M/qtr a few years back has gone to zero?? No wonder AMD refuses to have transparency in their business segment reporting! While they obviously have their reporting segments divided to obfuscate, if semicustom will, indeed, be negligible in Q1, than that leaves EPYC numbers bare -- doesn't it? Rome adoption is clearly not as hoped for due to the power of the Intel monopoly. Got to get to Milan. 2H is heavily back end loaded for all segments. I think 45% full year margin, considering the lower margin semicustom in 2H, is not bad. We have RDNA2 big Navi coming, but nVidia also has 7nm Ampere coming. Pravin

To: neolib who wrote (35072)	1/31/2020 4:22:52 AM
From: Vattila	Read Replies (1) \| Respond to of 72296

I think you have a good summary of the earnings call right there. EPYC revenue is not yet epic — it seems rather lethargic. While snowballing may have begun, it started from such a low base that there is no size and weight to the ball so far. But the potential is there. AMD confirmed that they are on target for 10% unit share in server by the middle of this year. Lisa Su has stated that revenue share should be similar, but let's account for some discount and the fact that Intel plays in a larger part of the market still. So consider 7% revenue share of Intel's current $7B+ for Q4. That is ~$0.5B. Still far below the contribution from the client side of the business, but it is starting to become material. Of course, with AMD having superior technology, no one here is content with just 1 of 10 CPU's sold in the server market being an AMD processor. Over time we would like to see AMD becoming the preferred product, with the share to reflect that. That means approaching and surpassing 50% share over time. Becoming the leader in high performance compute — that is what Lisa Su is heading for. The road from 10% to 20% can be very quick, if history is any guide. Back in April 2006, the Opteron processor marked its third anniversary with 22% share. Ruiz had predicted that Opteron would exit 2004 with 10%, over one and a half years after launch, which didn't happen, and he set a new target for 12% by the end of 2005. They reached 11% in 2005-Q2 already. It then doubled from there in a year. quarterlyearnings.amd.com theregister.co.uk Other than that, my take away from the quarter is amazement by the scale of success of 7nm Ryzen and its contribution to revenue. We often point out, as I see elsewhere as well, that the DIY/channel market is "tiny". And it is often pointed out that the cake is in server. Well, it is not. Not by a long shot. So far at least. There is tremendous growth potential in the client market, especially with traction with the OEMs in the commercial and notebook segments. I look forward to the Financial Analyst Day (March 5). To underpin the high valuation, we need a FAD to dispel the FUD. PS. Therese Poletti has a good article on the quarter, expressing the same frustration as yours over the lack of transparency in the reporting of the server side of the business. marketwatch.com