Thread by @dylan522p

Biggest takeaways from $AMD earnings.
$3.85B revenue, +99% YoY
48% Gross Margin
Guidance upped to 60% YoY to $15.61B!
1. AMD is now a high end company. They are foregoing the low end market which used to be a refuge and are fully moving to the high end.

2. Enterprise, Embedded and Semicustom that includes consoles and datacenter CPUs grew 19% QoQ and 183% YoY to $1.6B, flat share vs Intel from Q1 to Q2
3. Client Computing and Graphics had revenue grow 7% QoQ and 65% YoY to $2.25B, flat share vs Intel from Q1 to Q2
$INTC $AMD

4. AMD repurchased 3.2 million shares of common stock for $256 million, $80 a share. This means AMD management cannot find a better place to reinvest their earnings, which is sad because they could be investing heavily in increasing supply faster.

5. Based on AMD guidance revenue for Q3 should be $4.1B, and Q should be $4.22B for a total of $15.61B
I'm putting them at 4.35B and 4.65B for the rest of the year to reach $16.3B.
6. DC CPU sales are about $850M and should cross $1B a quarter later this year.

7. Extra supply of ABF substrates continues to come online. Lisa says it's tight and will get better in 2022. Can they grow the substrate supply fast enough to gain share in H2? Intel talked big that being an IDM allowed them to grow substrate faster and stop share losses.

8. Epyc Milan passes Epyc Rome in Q3 in terms of shipment share.
9. Datacenters will continue to grow as share of revenue from a bit above 20% to even higher.
10. AMD basically guided that gross margins will rise above 50% in the mid term as datacenter % increases

11. Operating expenses such as R&D and marketing/sales expenses will continue to increase at a slower rate than revenue gains. What will AMD will do with these cashflows? I want them to buy Innovium.
12. Lisa continues to emphasize revenue share is increasing (marketshare is not)

13. AMD believes client PC will be flat across 1st half vs 2nd half. That means datacenter growth will be mammoth. Console + Epyc should grow another ~$300M in the Q3 and ~$400M in Q4.

15. AMD talked up telecom market which is a big Intel stronghold, but they need to wait for Xillinx merger before truly attacking it.
16. Console business is still ramping, so seasonality is not typical. 2nd half is growing, but usually 2nd half growth is huge relatively.

17. AMD is not worried about next year PC volumes falling off a cliff. Their results aren't as dependant as what happens in the market like it is for Intel. Intel 2022 is heavily dependant on PC sales continuing to be strong, which them likely will not be.

18. The CFO basically said we guided 25% on Operating Expenses, but "I think we will come in lower". How often does a CFO say they will beat updated guidance on the call which it was updated on? 🤣

19. Final takeaway, I agree Intel will keep unit market share stable through 2nd half. AMD will also grow ASPs massively while Intel is flat. This means revenue share swings in favor of AMD despite marketshare staying flat.
AMD finally makes datacenter a $1B business in Q3!