AMD 4Q15 Earnings Call Notes

Advanced Micro Devices’ (AMD) CEO Lisa Su on Q4 2015 Results

Buzz in VR is focusing the gaming industry back on the PC platform

“buzz and interest in VR is an exciting trend that is focusing the software industry’s attention and some of its brightest minds back on the PC platform.”

GPUs are key to VR experience

“While the initial wave of VR will be focused on gaming, an increasing number of developers see VR as the most significant advancements in how we interact with technology, continued [ph] reduction of the mouse and graphical user interface. Most importantly these break through software experiences will only be enabled with high performance energy efficient GPU’s.”

x86 has the momentum in the datacenter

“We still see ARM strategically as an interesting market for the infrastructure market, but it is certainly developing bit slower than expected…I think it’s more of a market statement, Vivek than an AMD specific statement. I think the overall commentary, maybe if I just expand a little bit is, the datacenter market is really-really interesting and I think we all agree with that. I think x86 has a lot of momentum and that’s one of the reasons that we’ve put quite a bit more emphasis on our x86 datacenter and infrastructure play. That being said I think ARM does have a lot of specific areas where it can contribute and it has done so. But I would say in servers in particular perhaps slower than originally expected, but still something to watch for the medium term.”

PC market is forecast to decline low single digits, but may be more like mid single digits

“if you look at the current market projections it’s somewhere in the low single digits, I think if you were to talk to the customer set, it might go from low single digits to mid-single digits. So that’s the environment that we are you know forecasting unit share growth.”

Pleased with our execution on engineering changes

“I will say that I am pleased with the execution on engineering that we have accomplished over the last 12 months. I think we have passed some significant hurdles. The transition to FinFET for us was very-very critical across our businesses. And I feel good about the state of the progress there.”

VR could require custom work

“So I think there are opportunities to do customer implementations of GPU for virtual reality. I think the amount of graphics horsepower that’s required and perhaps some of the form factors that you want to go into being smaller more portable would enable you to do that. I think it’s early to talk specifics but I think that the general ideal that VR has a lot of requirements and doing something custom might be helpful, I think is absolutely on the mark.”

In professional graphics the hardware is good we haven’t invested enough in software

“When you talk about professional graphics, I think it’s such a specialized market that it is more about the product you offer and is it competitive and differentiated enough. I think it’s fair to say that most of our customers would say the products are actually very good. So the overall product capability and performance is good. Our issue has really been are we investing enough in the software resources to help customers use some of our products.”