Advanced Micro Devices, Inc. (AMD) Q2 2023 Earnings Call Transcript

For the period ending June 25, 2023

August 1, 2023 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the AMD Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce to you, Mitch Haws, Head of Investor Relations. Thank you, Mitch. You may begin.

Mitch Haws

Thank you, and welcome to AMD's second quarter 2023 financial results conference call. By now, you should have had the opportunity to review a copy of our earnings press release and accompanying slideware. If you've not reviewed these documents, they can be found on the Investor Relations page of amd.com.

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 slides posted on our Web site.

Participants on today's conference call are Dr. Lisa Su, our Chair and Chief Executive Officer; and Jean Hu, our Executive Vice President, Chief Financial Officer, and Treasurer. This is a livecom, and will be replayed via webcast on our Web site.

Before we begin, I would like to note that Jean Hu will attend the Jefferies Semiconductor, IT Hardware and Communications Summit on Tuesday, August 29, and the Deutsche Bank Technology Conference on Thursday, August 31. Dr. Lisa Su will attend the Goldman Sachs 2023 Communacopia & Technology Conference on Tuesday, September 5. Our third quarter 2023 quiet time is expected to begin at the close of business on Friday, September, 15.

Finally, 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 materially.

With that, I'll hand the call over to Lisa. Lisa?

Lisa Su

Thank you, Mitch, and good afternoon to all those listening in today. We executed well in the second quarter, launching multiple leadership products, significantly expanding our AI engagements, and ramping our latest Zen 4, EPYC, and Ryzen product families. Second quarter revenue declined 18% year-over-year, to $5.4 billion. Sales were flat sequentially as Client and Datacenter segment growth was offset by expected declines in our Gaming and Embedded Segments. AI cluster engagements grew by more than seven times sequentially as multiple customers initiated or expanded programs supporting future deployments of Instinct MI250 and MI300 hardware and software at scale.