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Advanced Micro Devices (AMD) Q1 2018 Results - Earnings Call Transcript

Apr. 25, 2018 10:11 PM ETAdvanced Micro Devices, Inc. (AMD)80 Comments
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Advanced Micro Devices, Inc. (NASDAQ:AMD) Q1 2018 Earnings Call April 25, 2018 5:30 PM ET


Laura Graves - Advanced Micro Devices, Inc.

Lisa T. Su - Advanced Micro Devices, Inc.

Devinder Kumar - Advanced Micro Devices, Inc.


Vivek Arya - Bank of America Merrill Lynch

Mark Lipacis - Jefferies LLC

John William Pitzer - Credit Suisse Securities (USA) LLC

David M. Wong - Wells Fargo Securities LLC

Stacy Aaron Rasgon - Sanford C. Bernstein & Co. LLC

Timothy Arcuri - UBS Securities LLC

Harlan Sur - JPMorgan Securities LLC

Srini Pajjuri - Macquarie Capital (USA), Inc.

Charles Long - Goldman Sachs & Co. LLC

Ambrish Srivastava - BMO Capital Markets (United States)

Hans Mosesmann - Rosenblatt Securities, Inc.

Blayne Curtis - Barclays Capital, Inc.

Auguste Richard - Northland Securities


Greetings, and welcome to the Advanced Micro Devices First Quarter 2018 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Laura Graves. Laura, please go ahead.

Laura Graves - Advanced Micro Devices, Inc.

Thank you, and welcome to AMD's first quarter 2018 conference call. By now, you should have had the opportunity to review a copy of our earnings release and slide presentation. If you have not reviewed these documents, they can be found on the Investors Relations page of AMD's website at www.amd.com.

Participants on today's conference call are Dr. Lisa Su, our President and Chief Executive Officer; and Devinder Kumar, our Senior Vice President, Chief Financial Officer and Treasurer. This is a live call and will be replayed via webcast on our website.

I would like to highlight a couple of important dates for you. Dr. Lisa Su, President and Chief

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Comments (80)

12 before it starts to drop again..hopefully..or else 11.50 and drop
Lol just wait. First article will be Jim Keller joining Intel = downfall of Ryzen XD. Anything and everything to disregard through goring positives of financial performance and products
Here's a more accurate headline: "Intel hires Jim Keller in last ditch effort to remain relevant"

Media, you're welcome.
I really dont understand the after hours jump vs pre hours jump.
I am long on AMD but feel like its going to tank once market opens.
its manipulations by big guys
Folger profile picture
Bottomline is that AMD beat analysts' earnings & revenue estimates by growing revenue 40% y/y in a typically slow quarter, is continuing to execute extremely well with the Radeon and Ryzen architectures that are technically beating Intel and gaining a genuine lead with the 7nm node and will see sequentially q/q higher earnings and revenue throughout the rest of 2018 as EPYC and the mobile RR APU processors will continue to gain more market share. I plan to hold my position for several more months.
Miners don't care about which quarter it is.
i still dont understand macquerie, well bernstien is out as well...analysts are still mixed...i guess it will take another two quarters...by that time they will note q4 is going down omg...and downgrade...

i hope loop capital upgrades because the a while back the reason they downgraded was cuz they thought the intel collab wasnt gonna happen..
I am sure the Goldman and there minions were up all night working on ways to bash AMD! PEOPLE look at every ER for AMD in the last 2 years or more.... They do good! THEN the FAKE news hits, paid off analyst start writing crap that means nothing, They find some little negative of any kind and blow it up in to something. They really need to get off the crypto kick, Most of AMD sales are from EPYC and RYZEN now. Microsoft and other server farms are all switching to EPYC. But they do a good job of covering that fact up. How do I know? I am one of the guys switching all the servers over to EPYC! GUYS! IT does not matter if AMD cures cancer! The amount of short crooks involved in this stock is astronomical, And Goldman and other like them have used AMD as there go to Short for years, It's their short play toy. They will not give it up so easy. AND WHERE IS THE SEC? Out on their boats having a party on the bribe money they got from Goldman and others to look the other way.
It happens EVERY ER!
that is why..many say...a merger will send the sp to the moon...

because amd as now...is still in turnaround phase..it takes time..

but amd is doing it with wht little resources they got..

unlike BB where they are just trying to get income via litigation..and some software..
the price target cuts are puzzling this morning.
Price targets, good or bad, historically have zero impact on AMD share price. The huge spread between price targets suggests analysts simply do not have an understanding of AMD's business. That's even more evident when you read their reports.
RandSec profile picture
@Delvin Ali:

The new price targets may seem puzzling as models of reality, but perhaps less so as replacements for ended manipulation attempts. Presumably, higher targets were supposed to encourage buyers for short sales (pump & dump). Having outlived their usefulness, we proceed to the next manipulation.

Analysts do not work for us. They work for our trading competition. It should not be surprising for them to straight-up lie to our face.
jp Morgan cuts from 16 to 13
Autosoft profile picture
Stifel upped it to $14...
jp maintains neutral..lowers from 16 to 13..hmm never knew they had it at 16...
analysts updates/downs are coming in....

baird maintains buy at 20 , stifel ups to 14 buy, macque maintains neutral downs to 13, sasque maintains negative ups to 8 ( from 7.50)..oh god...
jim keller is apparently joining intel..oh man..ppl gonna spin this as bad for AMD
lbolaji profile picture
Still no upgrades... 🤔
26 Apr. 2018
I'll buy in again at 9.00. MU is where it's at anyway.
"AMD’s Zen & Athlon64 CPU Architect Jim Keller Joins Intel"

So zen2 will probably catch up to intel with IPC, meanwhile intel will have readied a next-gen product by then.
Browser73 profile picture
Weren't you crowing something about AMD not getting to 7nm until late 2019 not too long ago? Lisa seemed pretty solid in saying samples will ship later this year and ramp up next year.
yes he did..something about glo flo process is messy..blah blah...

on the other hand..

jim joining intel is no biggie for amd..it is though for tesla xD

cuz now their entire chip design thing got smashed

experts bounce around all the time man..its a normal...staying in one place is hella boring..

heck..i switched companies every two years....and finally ended up opening my own...trust me, i got no idea how people do tens of years at one place..
You non techs are so funny! AMD EPYC and RYZEN processors are SOOOOO! Superior To Anything INTEL has right now its not even funny! AMD new chips are built on a new architecture! INTEL's are all just rebranded new releases on there old architecture. Why do you think that Microsoft and other server farms are and have been switching to AMD EPYC? Take it from a guys that works on this stuff every day.
Please remember these numbers mean nothing. AMD is being illegally manipulated by GS and others. They will continue to trade in the $10.00 $9.00 range until GS and others decided to allow it to move upward a few dollars, then they’ll short it back down. The fact that AMD is going to issue 700 million more shares that aren’t going to be dilutive initially (whatever that means) does not look good for stick price. This stock has had at least 3 quarters of excellent results and the stock price continues to decline. The SEC is sleep at the wheel and the current administration and it failure to regulate anything is going to continue to result in the large investment houses ripping off stock holders
In case you didn’t know the whole entire market is one made up manipulated story.

So don’t be so surprised when things don’t go your way ;)
Totally agree! Its amazing what they can get away with when they bribe the SEC!
Bossco profile picture
ROTFLMBO ... further proof that tin foil hats & AMD fanz go hand in hand. Entertaining in a sad way. Good to see improved GAAP earnings - a positive trend I’ve been demanding for entry & though balance sheet needs whole lot more improvements the roadmap is positive. I’m betting on 20-30% gains to 2019.
Autosoft profile picture
That was a good call.. Listened on their IR channel...

Vega is in the lab, due to sample "later this year"
Navi will be the first 7nm product
Rome is progressing for sampling this year (rumors said the Big 7 would get retail early)
EPYC shipments doubled again (I'd say ~2%)
Ryzen is 60% of C&G
Confirmed Cray win
$1.75B for next Q ( I can see a $2B Q4)

And with all the good news the stock still took a hit... I also saw today that Adobe picked up Radeon Pro SSG for Creative Cloud, though it's not a high volume play, they may be able to build the market up...
The one thing I anted to hear about was Vega Mobile... They confirmed Mobile Pro for the Q but with Vega Mobile they'll have a powerful thin and light wksta...
Threadripper+ should drop around June, maybe July...
Depending on when the Navi design went to TSMC they'll have it for Q4 (GPUs are a faster cycle unless a totally new arch)....
And AMD also just released the ULV Raven RIdge chips for OEM so there should be some great form factors especially again with Vega Mobile...

Still long EPYC...
lbolaji profile picture
I thought Vega 7nm was first, not Navi
Autosoft profile picture
She clearly said Navi will be first... It's a gaming card, not HPC so it's just a matter of the shrink.. It would be great if they can get two dies out of it (small and medium to large)...
RandSec profile picture
Lisa T. Su - Advanced Micro Devices, Inc.: "We have a 7-nanometer GPU based on Vega that we'll sample later this year."
I am a "little surprised" that Arcuri of USB is not fired yet. Oh wait, that's after MU earnings.
That or manipulation of epic proportions.
11 cents is terrible and AMD will probably be red in before the week end.
When there’s 193,632,000 shares short you can bet that good ol boys network is working (or trying too) in the shorts favor.
They miscalculated the AMD ceo badly and
now the short squeeze comes. If we have a market meltdown nearly everything will drop and that’s the only thing that will amd in the near term
"... now the short squeeze comes."

Hopefully. Short fear in the morning... it smells like victory.

But if the shorts prevail, then buy cheap AMD shares. Long AMD.
Devinder Kumar: "Based on the strength of our business momentum, for the full year 2018, we now expect revenue to increase by mid-20s percent over 2017, driven by the ramp of our new products."
Does this mean there is less growth in Q3 and Q4 than in Q1 and Q2?
(Q1 actual Y/Y = +40%; Q2 guidance Y/Y = +50%)
what did we do for rev last year??
very conservation estimate
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