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To: Pravin Kamdar who wrote (63401)	2/4/2025 2:26:21 PM
From: Vattila	Respond to of 72232

> It seems like AMD overpaid for [Xilinx]. Certainly, although paid for by stock, and hence not affecting cash flow much, the GAAP earnings have been depressed ever since, due to the high amortisation. But I'm not sure how much the acquisition cost really weighs on the stock price. Remember, we hit $164.46 intraday 2021-11-30, well before the deal was finalised, even though the cost of the deal was well known. But perhaps the accumulation of poor GAAP earnings over time have made a negative difference for stock analysts. On the other hand, the high operating margin in the Embedded segment has been accretive, especially after the downturn in the Client segment and margin pressure in the Data Centre segment after the pandemic. Numbers would have looked far, far worse without Xilinx in the Embedded segment. I was sad to see Victor Peng leave so soon, though, without any notable achievements since the merger. I was hoping we'd see more of the enthusiastic Victor + Lisa duo that we saw around the announcement of the deal, with amazing new products and customer wins. That said, I think the Embedded segment will continue to do great for AMD going forward, serving as solid foundation for the business, while also having great potential in upcoming markets, especially robotics as you mention. Xilinx's FPGA chips are in robots roaming the solar system, so it would make sense to have them in robots on earth as well. And some say that cars are becoming robots on wheels. All gaining flexibility and longevity by having reprogrammable hardware as you say.