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以下搬運並翻譯 有興趣的自己看吧 非常長
原文來自 AlphaStreet https://ibit.ly/GnyM


Advanced Micro Devices Inc. (NASDAQ: AMD) Q4 2021 earnings call dated Feb.
01, 2022

超微半導體2021年第四季度盈利電話會議，日期為2022年2月1日


Operator

接線員

Hello, and welcome to the AMD Fourth Quarter and Full Year 2021 Financial
Results Conference Call. [Operator Instructions]

大家好，歡迎來到 AMD 第四季度和2021年全年財務業績電話會議

It’s now my pleasure to turn the call over to Laura Graves, Corporate Vice
President and Investor Relations. Laura, please go ahead.



蘿拉‧格雷夫斯ー投資者關係

Thank you, and welcome to AMD’s fourth quarter and fiscal year end 2021
financial results conference call. By now, you should have had the
opportunity to review a copy of our earnings release and accompanying
slideware. If you have not reviewed these documents yet, they can be found on
the Investor Relations page of amd.com. Participants on today’s conference
call are Dr. Lisa Su, our President and Chief Executive Officer; and Devinder
Kumar, our Executive Vice President, Chief Financial Officer, and Treasurer.
This is a live call and will be replayed via webcast on our website.

謝謝大家，歡迎大家參加 AMD 公司第四季度和2021財年財務業績電話會議。現在，你應
該有機會看看我們的收入報告和附帶的幻燈片。如果你還沒有看過這些檔，你可以在


Before we begin, I would like to note that Dan McNamara, Senior Vice
President and General Manager of Server will attend the virtual Susquehanna
Financial Group 11th Annual Technology Conference on Thursday, March 3. Our
first quarter 2022 quiet time is expected to begin at the close of business
on Friday, March 11. And AMD will host its 2022 Financial Analyst Day on
Thursday, June 9.



Today’s discussion contains forward-looking statements based on current
beliefs, assumptions and expectations, speak only as of today, and as such,
involve risks and uncertainties that could cause actual results to differ
materially from our current expectations. Please refer to the cautionary
statement in our press release for more information on factors that could
cause actual results to differ. We will refer primarily to non-GAAP financial
measures during this call. The full non-GAAP to GAAP reconciliations are
available in today’s press release and the slides posted on our website.



Now with that, I will hand the call over to Lisa. Lisa?

現在，我要把電話交給蘇媽了。蘇媽？



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Thank you, Laura, and good afternoon to all those listening in today. 2021
was an outstanding year for AMD as we exceeded our aggressive growth goals
and delivered another record year. Each of our businesses grew significantly
and set new annual revenue record, highlighted by data center revenue more
than doubling year-over-year. Annual revenue grew 68% to a record $16.4
billion and we expanded gross margin for the sixth straight year. We also
delivered record net income and EPS, both of which more than doubled
year-over-year.



Looking at the fourth quarter, we ended the year exceptionally strong with
our sixth straight quarter of greater than 45% year-over-year revenue growth.
Fourth quarter revenue grew 49% from a year ago to a record $4.8 billion. We
expanded gross margin by more than 5 percentage points and doubled operating
income year-over-year.



Turning to our Computing and Graphics segment. Revenue increased 32%
year-over-year to $2.6 billion, driven by growth in both Ryzen and Radeon
processor sales. Record client computing revenue grew by a double-digit
percentage from a year ago, led by record notebook sales. We saw strong
demand for premium AMD notebooks and our higher end desktop CPUs in the
quarter as Ryzen 5000 processor unit shipments grew by a double-digit
percentage sequentially. As a result, we believe we gained client processor
revenue share for the seventh straight quarter.

轉到我們的計算和圖形部分。收入同比增長32% ，達到26億美元，這主要得益於 Ryzen


We launched our Ryzen 6000 Series notebook CPUs at CES last month, featuring
our new Zen 3+ Core that further extends the leadership compute, gaming and
battery life capabilities of our mobile processors. We increased the number
of premium gaming and commercial design wins from Acer, Asus, Dell, HP,
Lenovo and other major PC providers to more than 200, including more than 20
AMD Advantage notebooks that combined Ryzen CPUs, Radeon GPUs and Radeon
Software to deliver the ultimate gaming experience.



We also provided the first public demonstration of our upcoming Ryzen 7000
desktop processors at CES. Ryzen 7000 Series desktop CPUs provide a
significant performance increase compared to our current Ryzen processors by
combining our high-performance 5-nanometers Zen 4 Core with our next
generation memory and IO technologies in the new AM5 Socket. There is a lot
of excitement in the market for our next-gen Ryzen desktop processors, and we
’re on track to launch in the second half of 2022.



In Graphics, revenue more than doubled year-over-year for the third straight
quarter. Radeon 6000 Series GPU unit shipments and revenue both grew by
double-digit percentages sequentially led by strong demand across our RDNA 2
desktop family. At CES, we announced that we expanded our Radeon 6000 Series
GPU portfolio with our first mainstream RDNA 2 desktop GPU priced at $199. We
also introduced new mobile GPUs that deliver up to 20% more performance than
our prior generation and our first mobile graphics chips for thin and light
gaming notebooks.



Data center graphics revenue more than doubled year-over-year driven largely
by HPC wins for our latest Instinct MI200 accelerator. We are seeing growing
customer engagements for our data center GPUs based on the leadership AI and
HTC performance of our new MI200 accelerators, highlighted by multiple
supercomputing wins and an expanded set of platforms on track to launch from
Asus, Dell, HP, Lenovo, Supermicro and others starting later this quarter.



Turning to our Enterprise, Embedded and Semi-Custom segment. Revenue
increased 75% year-over-year to $2.2 billion, driven by record EPYC processor
and semi-custom sales. Semi-Custom sales increased year-over-year as the
current game console cycle continues outpacing all prior generations. We
expect revenue to grow this year driven by continued strong demand for the
latest Microsoft and Sony consoles.


(Sony)遊戲機的需求持續強勁，今年的收入將有所增長。

Turning to Server. We had another outstanding quarter. Revenue more than
doubled year-over-year and increased by a double-digit percentage
sequentially driven by demand across both cloud and enterprise customers. In
cloud, revenue more than doubled year-over-year as the largest providers
expanded internal deployments and more than 130 new AMD-powered instances
launched from Amazon Web Services, Alibaba, Google, IBM, Microsoft Azure and
others.


(Google)、 IBM、微軟 Azure 等公司推出了130多個基於 amd 的新實例，收入同比增長
了一倍以上。

Microsoft Azure previewed a new HPC instance powered by our 3rd Gen EPYC
processors with 3D stack memory that delivers up to 80% more performance than
currently available instances. Our differentiated 3D stacking technology
further extends the leadership performance of EPYC processors in technical
computing workloads like EDA, fluid dynamics and complex simulations. We
started volume production of EPYC processors with 3D stack memory earlier
this quarter in advance of OEM platform launches with all our major server
partners.

微軟 Azure 預覽了一個新的 HPC 實例，該實例由我們的第三代 EPYC 處理器支援，具有


In Enterprise, revenue doubled year-over-year driven by the ongoing ramp of
more than 100 3rd Gen EPYC platforms available from Dell, HP Enterprise,
Lenovo, Supermicro, Cisco and others. In HPC, EPYC processor adoption was
highlighted by the number of AMD-powered supercomputers on the November Top
500 Fastest Supercomputers’ list, tripling year-over-year to 73. EPYC
processors also dominated the Green 500 list and are now powering eight of
the top 10 Most Efficient Supercomputers in the World.



Turning to our overall data center business. We made outstanding progress in
the last year. We exit 2021 with data center revenue contributing a mid-20s
percentage of overall revenue. And we expect 2022 to be another year of
significant growth based on the strong customer demand signals for our
current and next generation products. In November, we provided first details
of our next generation EPYC processor, codenamed Genoa, that will feature up
to 96 Zen 4 cores and next generation memory and IO technologies, including
breakthrough memory expansion capabilities. Customer excitement for Genoa is
extremely high as it extends our performance leadership across a broad range
of workloads.



We also announced the addition of Bergamo to our server roadmap, featuring a
version of our Zen 4 core called Zen 4c that has been specifically optimized
for cloud native computing. Bergamo is a high core count power-efficient CPU
that can be used in the same platforms as Genoa. It will feature up to 128
CPU cores and deliver significant performance and power efficiency advantages
for cloud workloads. We are sampling general processors to customers now and
are on track to launch later this year with Bergamo shipments plan to follow
in the first half of 2023.



Turning towards Xilinx acquisition, we were pleased to announce that China
State Administration for Market Regulation approved the transaction on
January 27. The only remaining regulatory approval required is FTC approval
of our HSR refiling, and we expect to close the transaction in the first
quarter of 2022. I am more excited than ever about the benefits of the
acquisition for both AMD and Xilinx’s stakeholders. Customer excitement is
also high as they look forward to the opportunity to deepen their strategic
engagements with AMD based on our expanded technology and solutions portfolio.



In summary, I am incredibly proud of our performance in 2021. Our record
annual results highlight our strong execution over multiple years to
establish the technical, operational and strategic foundation to position AMD
as the high performance computing leader. Each of our businesses performed
extremely well in 2021 with growth significantly ahead of the long-term
financial model we outlined at our Financial Analyst Day in 2020. I want to
take a moment to recognize and thank the AMD employees whose passion,
dedication and execution have enabled this success.



Turning to 2022. Demand for our products is very strong, and we look forward
to another year of significant growth and share gain as we ramp our current
products and launch our next wave of Zen 4 CPUs and RDNA 3 GPUs. We have also
made significant investments to secure the capacity needed to support our
growth in 2022 and beyond. Looking out over the long term, we are confident
in our ability to continue growing significantly faster than the market based
on our expanded roadmap investments and the deep relationships we have
established with the broad set of customers who view AMD as a strategic
enabler of their success.



Now I’d like to turn the call over to Devinder to provide some additional
color on our fourth quarter and full year financial performance. Devinder?


Treasurer



Devinder Kumar ーー執行副總裁、首席財務官和財務主管

Thank you, Lisa, and good afternoon, everyone. We had a very strong 2021 with
increased demand for our products. Excellent execution resulted in record
annual revenue, continued gross margin expansion, record profitability and
significant cash flow generation. Fourth quarter 2021 revenue of $4.8 billion
was our sixth consecutive quarterly record, up 49% from a year ago, driven by
strong revenue increases across all businesses.

謝謝你，蘇媽，大家下午好。隨著對我們產品需求的增加，我們迎來了一個非常強勁的


Gross margin was 50%, up 560 basis points from a year ago, driven by a richer
mix of products and data center revenue growth. Operating expenses were $1.1
billion compared to $789 million a year ago as we increased investments in
our long-term product roadmaps to support the significant growth trajectory
of our business. Operating income doubled from a year ago to a record $1.3
billion, up $665 million, primarily driven by significant revenue growth and
higher gross margin. Operating margin was 27%, up from 20% a year ago. Net
income was a record $1.1 billion, up $486 million from a year ago. Diluted
earnings per share was $0.92 compared to $0.52 per share a year ago. This
includes a 15% effective tax rate compared to a 3% rate a year ago.


15% 的實際稅率，而一年前的稅率為3% 。

Now turning to fourth quarter business segment results. Computing and
Graphics segment revenue was $2.6 billion, up 32% year-over-year, driven by
higher graphics and client processor revenue. Computing and Graphics segment
operating income was $566 million or 22% of revenue compared to $420 million
a year ago. The increase in operating income was driven primarily by higher
revenue, partially offset by higher operating expenses.



Enterprise, Embedded and Semi-Custom segment revenue was $2.2 billion, up 75%
from $1.3 billion the prior year. The strong revenue increase was driven by
significantly higher EPYC processor and semi-custom sales. EESC segment
operating income grew significantly to $762 million or 34% of revenue
compared to $243 million or 19% a year ago. Operating income growth was
driven primarily by higher revenue and richer product mix, partially offset
by higher R&D and go-to-market expenses.



Turning to the balance sheet. Cash, cash equivalents and short-term
investments were $3.6 billion at year end. As we continue returning capital
to shareholders, we repurchased $756 million of common stock in the fourth
quarter and closed out the year with $1.8 billion of repurchases.
Additionally, we have repurchased $1 billion to date in the first quarter of
2022 and have $1.2 billion remaining under the authorized $4 billion share
repurchase plan. Quarterly free cash flow was $736 million compared to $480
million in the same quarter last year and $764 million in the prior quarter.
Inventory was $2 billion, up $53 million from the prior quarter.


7.64億美元。庫存為20億美元，比前一季度增加了5300萬美元。

Now let me turn to our full year financial results. 2021 revenue was $16.4
billion, up 68% year-on-year, driven by strong growth across all businesses.
Gross margin was 48%, up 370 basis points from the prior year, driven by the
strength and competitiveness of our EPYC, Radeon and Ryzen processors.
Operating expenses were 24% of revenue compared to 28% in 2020.



2021 operating income was up 146% from a year ago to $4.1 billion, resulting
in an operating margin of 25% compared to 17% in 2020. Net income was $3.4
billion, up 118% from the prior year. Full year free cash flow was a record
$3.2 billion, resulting in free cash flow margin of 20% for the year. In
addition, we invested approximately $1 billion during 2021 in long-term
supply chain capacity to support our expectations for future revenue and
market share growth.



Let me now turn to our financial outlook. Today’s outlook is based on
current expectations and contemplates the current global supply environment
and customer signals and does not contemplate the addition of Xilinx as that
transaction has not yet closed. First quarter 2022 revenue is expected to be
approximately $5 billion, plus or minus $100 million, an increase of
approximately 45% year-over-year and approximately 4% quarter-on-quarter. The
year-over-year increase is expected to be driven by growth across all
businesses. The quarter-on-quarter increase is expected to be driven by
higher server and client revenue.



In addition, for Q1 2022, we expect non-GAAP gross margin to be approximately
50.5%; non-GAAP operating expenses to be approximately $1.2 billion; non-GAAP
interest expense, taxes and other to be approximately $207 million based on
the 15% effective tax rate; and the diluted share count to be approximately
1.22 billion shares.



For the full year 2022, we expect revenue to be approximately $21.5 billion,
an increase of approximately 31%, driven by growth across all businesses. We
expect non-GAAP gross margin to be approximately 51%; non-GAAP operating
expenses to be approximately 24% of revenue; non-GAAP effective tax rate to
be 15%; and non-GAAP cash tax rate to be approximately 9% due primarily to
the U.S. tax requirement to capitalize R&D and the full utilization of our
U.S. net operating losses and tax credits in 2022.



In closing, we had an outstanding quarter and an excellent year with very
strong revenue growth and numerous financial records. As we enter 2022, our
leadership products and growing customer momentum continue to position us
very well for long-term growth. I look forward to AMD delivering another year
of very strong financial performance.



With that, I’ll turn it back to Laura for the question and answer session.
Laura?

說到這裡，我將把問答環節交還給蘿拉。蘿拉？

Laura Graves — Investor Relations

蘿拉‧格雷夫斯ー投資者關係

Thank you, Devinder, and thank you, Lisa. Operator, we’re ready for our
first question.

謝謝你，德文德，謝謝你，蘇媽。接線員，我們準備好回答第一個問題了。

Questions and Answers:
問題與答案:
Operator

接線員

Certainly. [Operator Instructions] Our first question today is coming from
Aaron Raikers from Wells Fargo. Your line is now live.

當然可以。(操作說明)我們今天的第一個問題來自富國銀行的艾倫 ·  雷克斯。您的線路
現在是直播的。

Aaron Raikers — Wells Fargo — Analyst

Aaron Raikers ー富國銀行ー分析師

Yeah. Thanks for taking the question, and congratulations on the quarter.
Just thinking about the full year guidance, I know that you had mentioned in
your prepared remarks that you expect the Semi-Custom segment to grow. I’m
curious if you could help us maybe appreciate how you’re thinking about the
Semi-Custom segment relative to the Server segment? And whether or not that
30% contribution from total data center still applies for 2023, the outlook
that you had provided at the last Analyst Day or you think that we’re
tracking above that trend? Thank you.



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Sure, Aaron. Thanks for the question. So for 2022, I mean, our current view
is that we’ll see growth in all of our businesses. We see strong demand for
our products as well as we have increased supply capability given what we’ve
done with our partners. So relative to the growth from the different
businesses, the growth will be led by server. So from what we see from
customers and sort of design wins and platforms and all that, server will be
very strong next year. But we also expect growth from our other businesses,
including consoles, including our PC business, our Graphics business and our
Embedded business. So we expect the percentage of data center to continue to
increase as we go into next year, and we’ll give more on that as we go
through the year.



Aaron Raikers — Wells Fargo — Analyst

Aaron Raikers ー富國銀行ー分析師

Thank you.

謝謝你。

Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Thanks, Aaron.

謝謝，艾倫。

Operator

接線員

Thank you. Our next question today is coming from Matt Ramsay from Cowen &
Company. Your line is now live.



Matt Ramsay ー Cowen & Company ー分析師

Thank you very much. Good afternoon. For the whole team, but Lisa, congrats
on getting close on Xilinx. Excited to see what that brings, and obviously,
the strong results. One of the questions I’m getting tonight is with such a
strong start, greater than 30% guidance for revenue in 2022, can you just
kind of walk us through, maybe with a little more specificity, some of the
things that you’ve done in the supply chain around substrate, around back
end test and package, around wafer demand? And just to give people comfort
that there’s coverage there and visibility and the potential for upside,
particularly as you take server and desktop on the 5-nanometer, I imagine,
7-nanometer capacity won’t go away, it will stay as that new capacity comes
online. So I just want to make sure I understand all the variables around the
confidence in supply? Thanks.

非常感謝。下午好。為了整個團隊，但是 Lisa，祝賀你接近 Xilinx。很高興看到這樣的
結果，顯然，還有強勁的結果。我今晚得到的一個問題是，在這樣一個強有力的開端，


Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah, absolutely, Matt. Thanks for the question. So we’ve been working on
sort of the supply chain really for the last four or five quarters knowing
the growth that we have from a product standpoint and the visibility that we
have from customers.

是的，當然，馬特。謝謝你的問題。因此，在過去的四五個季度裡，我們一直致力於供應
鏈的研究，從產品的角度來看，我們已經有了增長，我們從客戶那裡得到了可見性。

So in regards to your question on 2022 supply environment, we’ve made
significant investments in wafer capacity as well as substrate capacity and
back end capacity. We feel very good about our progress in the supply chain
to meet the 2022 guidance. And our goal is frankly to have enough supply to
satisfy the demand out there. So our view is we’re going to continue to work
with our partners and our customers to ensure that we know what they need.
And likewise, our capacity investments are for 2022, but also beyond 2022,
because as the business grows, we need to continue to forecast and make plans
for that, and that’s what we’ve been working on.



Matt Ramsay — Cowen & Company — Analyst

Matt Ramsay ー Cowen & Company ー分析師

Very good. Thanks for that. Just as a follow-up, I’ve been hearing more and
more, and as you guys roll out the 5-nanometer portfolio, many of those
products in server and in desktop will include next generation Infinity
Fabric. And it’s been a conversation for a while about what you guys have
branded sort of A+, A, AMD CPU and GPU together. I wonder as you look out
over the next several quarters, how — Lisa, how would you characterize that
combination in importance to your company strategy and the growth? Thanks.



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah. Well, we’re very excited about our 5-nanometer products. I think Zen 4
is very critical. It’s a focus for this year for both our server roadmap as
well as our client roadmap. And then the work with the Infinity Fabric really
is just on top of that. It allows us to continue to optimize sort of the AMD
CPU and GPU ecosystem together. So whether on the data center side with our
data center GPU products working with EPYC in high performance computing or
on the PC side when we have our AMD APUs plus our discrete graphics, plus the
software on top. So it is an important — very important element of our
strategy, and it just goes to continuing to differentiate with the overall
portfolio as we go into these new platforms.



蘿拉‧格雷夫斯ー投資者關係

Thank you, Matt. Operator, next question please.

謝謝你，麥特。接線員，請問下一個問題。

Operator

接線員

Certainly. Our next question is coming from Ross Seymore from Deutsche Bank.
Your line is now live.

當然可以。我們的下一個問題來自德意志銀行的羅斯 ·  西摩爾。您的電話現在是直播的
。

Ross Seymore — Deutsche Bank — Analyst

Ross Seymore ー德意志銀行ー分析師

Hi. Thanks a lot for letting me ask a question. Congrats on the strong
results and the strong guide. Lisa, I just want to talk about the Computing
segment, the client computing side. At least in my model, that was a
significant portion of the upside in the quarter after, I believe, last
quarter, you talked about not wanting to fill the channel and make sure you
ship according to demand. So in the near-term, what changed? And perhaps more
importantly, as you look into 2022, it appears that you’re planning for
significant share gains to continue in that sector. Can you talk a little bit
about what gives the confidence for that share gain, please?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Sure, Ross. So your question about the Computing and Graphics segment. Look,
our focus in this segment is to be very closely aligned with our customers
and what they’re doing in the market. So we’ve been monitoring sell-in and
sell-out and sell-through trends very carefully. I think the strength that we
saw in the fourth quarter was very much a result of sort of the product
strength. And we saw very nice notebook demand continuing at the premium part
of the market in commercial, gaming, premium ultra-thin. So we believe that
the PC performance was a bit above our original guidance, but we believe that
was to match end user demand.



Going into 2022, again, same story. I think the — what we see is, 2021 was a
strong year for PCs. Overall, the industry shipped approximately 350 million
units. I think our view is that 2022 will be roughly flattish from a unit
standpoint. But we will see some mix changes in there with enterprise and
premium being stronger than, for example, low end and education.



So from our standpoint, it’s revenue share that we believe we can gain. It’
s the strength of our Ryzen 6000 series that we just launched at CES. We have
200 platforms from all of the OEM customers. And we have pretty good
visibility in working with our customers on that. So — and I think we feel
good about it. And again, the client business is one of all of our businesses
will grow. And I like that diversity frankly in the portfolio. But we feel
good about the progress we’ve made in PCs, and we’ll continue to ensure
that we’re matching sell-in with sell-out so that there is not inventory
build in the business.



Ross Seymore — Deutsche Bank — Analyst

Ross Seymore ー德意志銀行ー分析師

Thanks for the color. Maybe a quick follow-up on the pricing side of the
equation. You talked about getting enough supply to grow the impressive
targets that you guys have for the year. Conceptually and strategically, how
do you think about pricing? Is that something you pass along? Is it a
tailwind to gross margin? And I don’t know if you’d give any sort of
precision, but out of the 30% plus that you’re guiding to for the fiscal
year, roughly, how do we think about pricing as a tailwind within that?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah. Well, I would say the way to think about pricing is the industry has
seen some price increases across the supply chain. And that’s as to be
expected given the amount of capacity that we’re all putting on to satisfy
the strong demand. So we’re always in this for the long-term and working
with our supply chain partners as well as our customers to ensure that we
find a way to kind of share the additional costs. But our focus is on
ensuring that we have the supply to meet the high demand.



And I think what you’re seeing is growth in the model from the standpoint
that we’ve always kind of said we’re underrepresented in the business. When
you look even today with all of our growth, we’re still underrepresented in
the business, whether you’re talking about the server business or the PC
business. And so we believe that our product strength and our customer
engagements are such that we can grow significantly in this environment.



Ross Seymore — Deutsche Bank — Analyst

Ross Seymore ー德意志銀行ー分析師

Thank you.

謝謝你。

Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Thanks, Ross.

謝謝，羅斯。

Operator

接線員

Thank you. Our next question today is coming from Vivek Arya from Bank of
America. Your line is now live.

謝謝。我們今天的下一個問題來自美國銀行的維韋克 ·  阿亞。您的電話現在是直播。

Vivek Arya — Bank of America Global Research — Analyst

Vivek Arya ー美國銀行全球研究ー分析師

Thanks for taking my question. Lisa, I wanted to get your thoughts on the
competitive landscape in the server market this year versus last. Your
competitor Intel is launching their Sapphire Rapids platform. They seem to be
very excited about that. They’re adding a lot of capacity in their fabs.
Enterprise spending, which has tended to favor them in the past is also
coming back. So I’m just curious, how are you thinking about AMD’s ability
to gain more share in servers this year?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah, Vivek. So look, we always expect the competitive environment to be very
strong and very aggressive, and that’s the way we plan our business. That
being the case, I think we’re very happy with the growth that we’ve seen in
the business sort of last year. And as we look forward, we see opportunities
in both cloud and enterprise.



On the cloud side, we’re in 10 of the largest hyperscalers in the world are
using AMD. As they get familiar with us over multiple generations, they’re
expanding the workloads that they’re using AMD on. So we see that across
internal and external workloads. In the Enterprise segment, we doubled
year-over-year here in 2021. We continue to add more field support to have
more people get familiar with our architecture. We have very strong OEM
relationships. So I feel very good about our server trajectory. And yes, it’
s very competitive out there, but we think the data center business is a
secular growth business. And within that, we can grow significantly faster
than the market.



Vivek Arya — Bank of America Global Research — Analyst

Vivek Arya ー美國銀行全球研究ー分析師

Got it. So my follow-up, Lisa, the semiconductor industry just went through a
very tough time last year and even into this year given all the supply
shortages. I’m curious, what has that done to help you build stronger
relationships with your customers who are perhaps looking for a more
consistent execution on the roadmap and more reliable sources of supply? So
how is the shortage environment in semis changed the way customers are
looking at AMD today than how they used to look at you historically?



總裁兼首席執行官

Yeah. I think, Vivek, the most important thing that we are sort of working on
with our customers is really consistent execution. And so when you look at
the last year and sort of some of the supply-demand imbalance, it has
actually caused us to work much, much more closely with our customers. I
think we have — we’re talking about visibility now multiple quarters, and
in some cases, multiple years out for the type of capacity that we’re
talking about, for the size of the customers that we’re talking to, we need
to do that to plan, to have the capability to support all of that capability.



So overall, I think we have definitely deepened the relationships with the
customers. And by the way, also, we’ve deepened the relationships with our
supply chain partners. So I think the entire sort of — the entire food chain
needs to come together to deliver on the very strong demand that’s out
there. So that’s certainly what we’ve been working on.



Vivek Arya — Bank of America Global Research — Analyst

Vivek Arya ー美國銀行全球研究ー分析師

Thanks.

謝謝。

Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Thanks, Vivek.

謝謝，維韋克。

Operator

接線員

Thank you. Our next question today is coming from Toshiya Hari from Goldman
Sachs. Your line is now live.

謝謝。我們今天的下一個問題來自高盛的 Toshiya Hari。您的線路現在是直播。

Toshiya Hari — Goldman Sachs — Analyst

Toshiya Hari ー高盛ー分析師

Great. Thank you. Congrats on the strong results, Lisa. I had two questions
as well. One relatively short-term and one on Xilinx. The short-term
question. Just on Q1 revenue, you’re obviously guiding total company revenue
up on a sequential basis. Your nearest competitor talked about CPU inventory
corrections in the quarter. Is that something that you’re seeing in the
market? And if so, is that contemplated in your guidance?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Sure, Toshiya. Thanks for the question. So yeah, our guide in Q1 actually is
up sequentially. Usually, we’re down sequentially just given normal
seasonality, but the demand patterns are such that demand is strong and we
have additional supply coming on board, and so that’s why we’re guiding
sequentially up. As it relates to CPU inventory, whether in PCs or in
servers, we don’t believe there is any significant inventory of our
products, whether at our customers or sort of in the retailer channel. So
from that standpoint, I think we’ve been watching very carefully the sell-in
and sell-through patterns, and we believe we’re matched to end user demand.



Toshiya Hari — Goldman Sachs — Analyst

Toshiya Hari ー高盛ー分析師

Great. And as my quick follow-up on Xilinx. It’s been a while since your
initial announcement. I’m sure you’ve had quite a bit of back and forth
with your customers. You’ve had time to monitor how they’ve been performing
as a standalone company. How has your view on the company and sort of the
technology and the potential revenue synergies going forward evolved at all?
I know, you’re still waiting to close this thing. So maybe you can’t say
too much, but just curious how your view on things have evolved as it relates
to Xilinx? Thank you.



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah, absolutely. Look, I’m extremely excited about Xilinx. I mean, I would
say that we very much have been planning for the integration over this period
of time. We’ve had customers anxious to talk to us about combined roadmaps.
When we think about sort of the technology that they have, it’s very
complementary to ours, very, very strong team. And their business results
were just posted last week, and their business is also doing it very, very
well. So I think the combination is going to be very exciting. We look
forward to telling you a lot more about it as we get to close and beyond.



Operator

接線員



Thank you. Our next question today is coming from John Pitzer from Credit
Suisse. Your line is now live.

謝謝。我們今天的下一個問題來自瑞士信貸的 John Pitzer。您的線路現在是直播的。

John Pitzer — Credit Suisse — Analyst

John Pitzer ー瑞士信貸ー分析師

Yeah. Good afternoon, guys. Lisa, thanks for letting me ask a question. Lisa,
a couple of questions. First, I’m wondering if you could just help me better
understand the fungibility of your capacity planning throughout the year,
i.e., I understand that your view on the PC market this year is sort of
flattish with a better mix and you’re gaining share. But in the event that
come mid-year that were to change and perhaps be a little bit worse than
thought, do you have the ability to rejigger your sort of supply chain to
move towards server and CPU? How does that kind of math work?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah, John. So we’ve certainly worked very hard to give ourselves
fungibility amongst the various capacity corridors that we have. So we’ve
done numerous cross qualifications and new factory bring-ups and all of that
stuff. So I would say, it’s not 100% fungible, but there — it is — there
is an ability to move across the different businesses. And we make that a
dynamic allocation decision sort of like weekly based on what we see going
on. So I think we have a pretty good pulse on the market and we sort of
understand sort of what’s going on, and our customers are giving us signals
on a regular basis. And so I think we’ll be able to manage through at all of
the puts and takes as we go through the year.



John Pitzer — Credit Suisse — Analyst

John Pitzer ー瑞士信貸ー分析師

That’s helpful. And then my second question, just on data center and GPU.
Where does that factor into kind of your growth expectations for this year?
And now that you’ve created sort of a strong beachhead of EPYC inside the
data center, does that help the sales cycle at all to get more GPU
penetration?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah, sure. So our data center GPU had a very strong year in 2021. It was
sort of a key year for us as we launched the MI200 family and we had several
large supercomputing wins. This year, for data center GPU, it’s about the
cloud and about sort of expanding beyond sort of the large HPC wins. I view
it as a strategic growth vector for us over the next several years.



I think your question is a good one about sort of the pull now that EPYC is
very sort of well established in these accounts. I do think that helps us
with data center GPU. But the way to think about it is, this is a long-term
investment for us. The hardware is very, very good. We’ve been investing
more in the software. We’ve been working with our customers to ensure that
our tool chain gets them the performance that they need. And so I would say,
this is a longer term driver, but I’m pleased with the progress that we made
certainly through this last year.



John Pitzer — Credit Suisse — Analyst

John Pitzer ー瑞士信貸ー分析師

Thanks a lot.

非常感謝。

Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Thanks.

謝謝。

Operator

接線員

Thank you. Our next question is coming from Blayne Curtis from Barclays. Your
line is now live.



Blayne Curtis ー Barclays Capital ー分析師

Hey, thanks for taking my question. I was curious on the EPYC side and the
preamble you kept clearly strong trends in cloud and enterprise and HPC. Just
curious on the comp channel, you had a press release recently with Nokia. I
know it’s kind of early days, but any kind of comments you had in terms of
your design progress there? It’s kind of the last area that you haven’t
really penetrated in servers.



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah, sure, Blayne. It’s still very early, but yeah, we’re very happy with
the partnership with Nokia that was announced. As you said, this is an area
where we’re early in the cycle. It’s an area where we’re building
relationships. And so I feel good about the progress there, but I would say it
’s still quite early. And then you didn’t ask this, but just one of the
other things with the communications and 5G. As we bring Xilinx into the
equation, they also have very deep relationships with a number of these
accounts. And so we see that as an incremental positive as we think about
EPYC in communications.



Blayne Curtis — Barclays Capital — Analyst

Blayne Curtis ー Barclays Capital ー分析師

Thanks. And then maybe for my follow-up, just on the March guidance.
Semi-Custom typically has a pretty seasonal decline. It’s been anything but
typical, and you had very strong trends it seems like in the end of the year.
So I’m just kind of curious within that March guidance anything you can
provide in terms of — I’m assuming it’s probably down, but I am just kind
of curious versus normal levels. If you could just tell us anything, that
would be helpful?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Sure. So for the Q1 guide, the sequential up is being driven by — primarily
by server and then also by client. For Semi-Custom, it is normally
significantly down. And this year, it is flattish into the first quarter. And
it’s, as you said, the seasonal patterns aren’t there. Demand continues to
be strong, and we continue to support our customers with additional product
there.



Blayne Curtis — Barclays Capital — Analyst

Blayne Curtis ー Barclays Capital ー分析師

Thanks, Lisa.

謝謝你，蘇媽。



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Sure.

當然。

Operator

接線員

Thank you. Our next question is coming from Stacy Rasgon from Bernstein
Research. Your line is now live.

謝謝。我們的下一個問題來自伯恩斯坦研究公司的 Stacy Rasgon。您的線路現在是直播
的。

Stacy Rasgon — Bernstein Research — Analyst

史黛絲 ·  拉斯根ー伯恩斯坦研究公司ー分析師

Hi, guys. Thanks for taking my questions. First, I want to revisit the
pricing question. I don’t think you quite answered it. I get the
inflationary environment, I get your costs are going up, it’s fair to pass
those along. But of the 31% growth in 2022, how much of a tailwind is
pricing? I mean, is it none? Is it some? Like, how much? What’s the number?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Stacy, I don’t think I’m going to answer that exactly. But what I will say
is what I said before. Look, we are sharing. As we go through this
environment, the key is to have long-term relationships, both on the supply
chain side and on the customer side. But without a doubt, the predominant
growth is products. So it’s units and ASPs from the mix of the product, and
that’s the predominant growth.



Stacy Rasgon — Bernstein Research — Analyst

史黛絲 ·  拉斯根ー伯恩斯坦研究公司ー分析師

Okay, okay. For my follow-up, look, I feel really bad about nitpicking on a
51% gross margin, but I am going to, so I apologize in advance. But I’ll be
honest, just given the mix seemingly should be getting quite a bit better
year-over-year in ’22 versus ’21, and you’re almost sitting at 51%, I
mean, even going into Q1 anyway. Like why doesn’t that margin go higher? Can
you give us some feeling of the drivers, I guess, from where you’re sitting
right now in Q4 to Q1 guide through the year? Like why shouldn’t we expect
more upside to that gross margin given where the mix is going?


 q4到 q1全年指南的位置？比如我們為什麼不能期待更多的毛利率上升，考慮到混合的趨
勢？

Devinder Kumar — Executive Vice President, Chief Financial Officer and
Treasurer

Devinder Kumar ーー執行副總裁、首席財務官和財務主管

Yeah, Stacy, I can take that. As you heard Lisa talk about Semi-Custom — in
Q4 to Q1, you would expect an increase, but it is flattish. And really, it’s
product mix-dependent, right? I think looking at any particular quarter is
sometimes not the way to do it. It’s kind of looking at the long-term. We
did 48% plus in 2020 and we’re going to 51% as a guide in 2022. And if you
look at it from that standpoint, the margin of the company continues to go up
in a very steady way as data center grows, as we get to a better mix of
product within the client and graphics business, and that’s I think the
better way to look at it, Stacy.



Stacy Rasgon — Bernstein Research — Analyst

史黛絲 ·  拉斯根ー伯恩斯坦研究公司ー分析師

Okay. Got it. Thank you, guys.

好的知道了謝謝你們。

Operator

接線員

Thank you. Our next question is coming from Mark Lipacis from Jefferies. Your
line is now live.

謝謝。我們的下一個問題來自傑佛瑞斯的馬克 ·  利帕西斯。您的線路現在是直播的。

Mark Lipacis — Jefferies & Company — Analyst

作者: Mark Lipacis，傑富瑞分析師

Hi. Thanks for taking my questions. I had one for Lisa and one for Devinder,
if I may. Lisa, on — it seems like one of the potential threats to the
merchant processor players like yourself is that your own customers are
designing their own processors. And I’m wondering, does AMD have a role
working with your customers to provide customized solutions, be it tweaking
x86 or co-designing something more specific together hand-in-hand? I don’t
know if Xilinx would play a role in that. Could you just talk about what you’
re doing on with your customers on that effort?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah, sure, Mark. So actually, it’s a very exciting area. It’s — just
consider it an evolution of — we’ve always had a semi-custom model, like
the work that we do with the console guys to design specifically for their
application. As we look at the broader set of applications, including some of
these data center applications, we do believe that there’s a sort of the
next leg of the stool in terms of deep customer relationships. So we already
do a lot of customization around product SKUs and specific optimization
points, but we can certainly imagine both customer IP or different
incarnations of our IP to really optimize because as these applications end
up really requiring so much volume, it really does justify additional
customization for those cases.



Mark Lipacis — Jefferies & Company — Analyst

作者: Mark Lipacis，傑富瑞分析師

Yeah. Got you. Thank you. And then a follow-up for Devinder, if I may.
Devinder, five, 10 years ago, I don’t think a lot of people would have
expected to hear you talk about buying back billions of dollars worth of
stock. So congratulations on that progress. The question on this topic is,
where is AMD in terms of evolving this recent capital return push into a
policy? Are you at a point where you’re just looking opportunistically to
buying back stock or some companies say, we’re going to return X percent of
our cash flow to shareholders. Where is AMD in this — in the evolution of
capital return? Thank you.



Devinder Kumar — Executive Vice President, Chief Financial Officer and
Treasurer

Devinder Kumar ーー執行副總裁、首席財務官和財務主管

I think we just started in 2021, $1.8 billion. We did another $1 billion
early in 2022. And certainly, that — those purchases are part of our
long-term $4 billion share repurchase program. To your question about policy,
I don’t think we’re quite there yet. We just started. We’ll evaluate it as
we close the Xilinx transaction and also in our outlook of the business,
confidence in the business and then evaluate what we do from an overall
standpoint as we look out to the future, the next few years here.



Mark Lipacis — Jefferies & Company — Analyst

作者: Mark Lipacis，傑富瑞分析師

Fair enough. Thank you.

很公平，謝謝。

Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Thanks, Mark.

謝謝，馬克。

Operator

接線員

Thank you. Our next question is coming from Joe Moore from Morgan Stanley.
Your line is now live.

謝謝。我們的下一個問題來自摩根士丹利的喬 ·  摩爾。您的線路現在是直播的。

Joseph Moore — Morgan Stanley — Analyst

Joseph Moore ー摩根士丹利ー分析師

Great. Thank you. You’ve obviously done a great job of bringing on supply,
but it seems like AMD product is still relatively tight kind of everywhere.
Do you see the constraints being more severe in any of the end markets versus
any of the others?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官



Sure, Joe. Well, I think overall we have been in a mode of demand is larger
than supply, although we made a lot of progress through 2021, and I expect to
make more progress. Really incremental capacity will come online through
2022, especially in the second half. So I think it’s really about sort of
our prioritization decisions and trying to ensure that we spend — that we’
re satisfying our customers’ needs. But we’re definitely working on getting
more supply as we go through the year. And I think you should see it loosen
up a bit.



Joseph Moore — Morgan Stanley — Analyst

Joseph Moore ー摩根士丹利ー分析師

Great. Thank you. And then for my follow-up, you mentioned I think within
server that both enterprise and cloud were up over 100%, which seems pretty
good. Can you talk about the mix of enterprise versus cloud within that
business? Give us some qualitative sense of how big enterprise has become?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah. So enterprise has grown nicely. I mean, we’re still cloud-weighted. So
if you look — sometimes these patterns, it’s better to look on a full year
basis. So we are still cloud-weighted relative to enterprise. But enterprise
has made a really nice progress. It’s a sizable business, and the — we’ve
made progress with the larger OEMs as well as across a number of regional
OEMs.



Joseph Moore — Morgan Stanley — Analyst

Joseph Moore ー摩根士丹利ー分析師

Great. Thank you very much.

太好了，非常感謝。

Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Thanks.

謝謝。

Laura Graves — Investor Relations

蘿拉‧格雷夫斯ー投資者關係

Operator, we have time for two more, please.

接線員，我們還有時間再接兩個電話。

Operator

接線員

Certainly. Our next question is coming from Chris Caso from Raymond James.
Your line is now live.

當然可以。我們的下一個問題來自雷蒙德 ·  詹姆斯的克裡斯 ·  卡索。您的電話現在是
直播。

Chris Caso — Raymond James — Analyst

Chris Caso ー Raymond James ー分析員

Yes. Thank you. Good evening. First question is, if you could give some
indication of the strategy behind some of the processor variants that have
come out, most recently Milan-X and Bergamo coming up. Do those variants
represent incremental revenue to AMD? What’s the strategy behind it? How
does that help you — help the product line?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Sure, Chris. Well, I think the strategy is, as we have gotten more scale in
the business, we can invest more and we see ways to further differentiate our
product portfolio. So I mean, I think Milan-X is really sort of the highest
of the highest end. And we see that for technical computing and some of these
EDA workloads that that does give us a very differentiated product. And then
we have the regular Milan product line. We’ll have Genoa. And Bergamo is
really optimized for cloud. So I do believe it gives us more opportunity to
expand from a market share and a footprint standpoint.


Bergamo 確實是為雲計算優化的。所以我相信，從市場份額和足跡的角度來看，這給了我
們更多的擴張機會。

And I think the broader statement, Chris, is that the data center is so
large. There are so many different workloads that you can optimize. Like, by
doing these variants, we will actually get a better solution for the
customer, give them better total cost of ownership, and hopefully, give us a
larger footprint in that workload as well.



Chris Caso — Raymond James — Analyst

Chris Caso ー Raymond James ー分析員

Thank you. As a follow-up — the follow-up question is about supply and just
following up on some of your earlier comments. But can you tell us how you’
re approaching that now with getting the additional supply? Is it a factor of
your customers coming to you with the requirements and then you’re going
back to the foundry, and obviously, you need to make commitments to the
foundries right now. Are those backed up by customer commitments? And in the
event that business turns out to be better as it was last year, are you able
to procure that additional supply in time for when the business needs it?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah. We’ve set out a roadmap for frankly not just 2022, but beyond, which
allows, let’s call it, very aggressive growth goals. We work that on a
regular basis with our customers and our supply chain partners. I would say,
we have better visibility than we have ever had from a customer demand
standpoint. And so that gives us pretty good confidence in terms of what is
needed, but there are always going to be some puts and takes. And so we have
enough flexibility to do that. But our goal is to dimension for success,
right? At the end of the day, that’s what we want to do is we want to
satisfy customer demand. And so we’re dimensioning for success and we’ll
work with our customers as their demand evolves.



Chris Caso — Raymond James — Analyst

Chris Caso ー Raymond James ー分析員

Thank you.

謝謝你。

Operator

接線員

Thank you. Our final question today is coming from Harlan Sur from J.P.
Morgan. Your line is now live.



Harlan Sur ー j.p. Morgan ー分析師

Hi, good afternoon. Just wanted to ask about your Embedded business. It’s
not often talked about, but it’s a great market, diversified across various
end markets, you can also leverage your leading edge and mature portfolio. You
’ve got a pretty good line-up of the EPYC-based and Ryzen-based processors
targeting Embedded. You’ve also gotten some pretty good design win traction
in automotive with guys like Tesla. You’ve got wins in retail with digital
signage, wins in networking, IoT edge platforms. And then with Xilinx, you
can sort of really leverage their exposure in industrial automotive calming
consumer end markets. It’s a small part of the business today, but how do
you see the Embedded opportunity for AMD looking out over the next several
years?



Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Yeah. Thanks for the question, Harlan. Look, I like the Embedded business. I’
ve always liked the Embedded business. It’s a nice, sticky business over
many years. It is smaller, but it has grown nicely. And the volume design
wins in automotive and they’ve now sort of expanded their usage. They’ve
recently expanded their usage over a broader part of their product portfolio.
We’ve focused on networking and storage as key markets. I do think there is
a very good synergy with Xilinx in terms of just the customer set and the
channels.



And so I do see it as a nice grower for us as we go through it, and there’s
very good reuse from our server products as well as our client products. So we
’ll talk — again, we’ll talk a little bit more about it as the business
gets to more size. And that will be part of our Financial Analyst Day
conversation when we get to that in June.



Harlan Sur — J.P. Morgan — Analyst

Harlan Sur ー j.p. Morgan ー分析師

Perfect. Thanks, Lisa.

太好了謝謝 Lisa。

Lisa Su — President and Chief Executive Officer

總裁兼首席執行官

Thank you, Harlan.

謝謝你 Harlan。

Operator

接線員

Thank you. We’ve reached the end of our question and answer session. I’d
like to turn the floor back over for any further or closing comments.

謝謝你。我們的問答環節已經結束了。我想重新發言，聽取進一步的或結束時的意見。

Laura Graves — Investor Relations

蘿拉‧格雷夫斯ー投資者關係

Everyone, thank you very much for joining us for our fourth quarter and full
year 2021 earnings call. We appreciate your support of our company and look
forward to seeing you again soon. As a reminder, we will have our Financial
Analyst Day this year on June the 9th. Thank you, everyone. Have a great day.



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