Lisa Su: Harlan, thank you for the question. What it really is, is both us and our customers feeling confident in broadening the ramp? Because if you think about it, first of all, the Rockham stack has done really well. And, you know, the work that we’re doing is hand in hand with our customers to optimize their key models. And it was important to get sort of verification and validation that everything would run well and we’ve now passed some important milestones in that area. And then I think the other thing is, as you said, there is a huge demand for more AI compute. And so our ability to participate in that and help customers get that up and running is great. So I think overall, as we look at it, this ramp has been very, very aggressive as you think about where we were just a quarter ago.
Each of these are pretty complex bring ups. And I’m very happy with how they’ve gone. And by the way, we’re only sitting here in April. So there’s still a lot of 2024 to go, and there’s a great customer momentum in the process.
Harlan Sur: Yes, absolutely. Just going back just kind of rewinding back to the March quarter. So similar to the PC Client business, right, which declined at the low end of the seasonal range. If I make certain assumptions around your data center GPU business, I ex that out of data center. It looks like your server CPU business was also down at the lower end of the seasonal range. By my math, it was down like 5%, 6% sequentially. Is that right? And that’s less than half the decline of your competitor? And if so, like what drove the less than seasonal declines? I assume some of it was share gains, it sounds like enterprise was also better looks like you guys did drive a little bit more cloud instance adoption, but anything else that drove to a slightly better seasonal pattern in March for data center server?
Jean Hu: Yes. Harlan, this is Jean. I think the server business has been performing really well. Year-over-year, it actually increased a very strong double digit, I think, sequentially. It is more seasonal, but we feel good about continue gaining share there.
Lisa Su: And if I’d just add, Harlan, to your question, we did see strength in enterprise in the first quarter. And I think that has — that offset perhaps some of the normal seasonality.
Mitch Haws: Oh, we have time for two more questions.
Operator: Thank you. Our next question is from Tom O’Malley with Barclays. Please proceed with your question.
Tom O’Malley: Hey, thanks for taking my question. I just wanted to ask on the competitive environment. Obviously, on the CPU side, you had a competitor talk about launching a high core count product in the coming quarter, kind of ramping now and more so into Q3. You’ve seen really good pricing tailwinds as a function of the higher core capital. Can you talk about what you’re seeing in that market? Do you think that there’s any risk for more aggressive pricing, which would impact your ASP ramp for the rest of the year?
Lisa Su: Yes. When we look at our server CPU sort of ASPs, they’re actually very stable. I think we — again, we tend to be indexed towards the higher core counts. Overall, I would say the pricing environment is stable. This is about sort of TCO for sort of the customer environment and sort of our performance and our performance per watt, our leadership, and that usually translates into CCO advantage for our customers.
Tom O’Malley: Helpful. And then just a broader question to follow-up here. So I think you got asked earlier about the importance of systems. But on your end, how important is the Open Ethernet consortium to you being able to move forward to systems? I know that today, you obviously have some internal assets and then you can partner with others. But — is there a way that you could be competitive before there is an industry standard on the Ethernet side? And can you talk about when you think the timing of that kind of consortium comes to market and enables you to maybe accelerate that road map? Thanks a lot.
Lisa Su: Yes. I think it’s very important to say we are very supportive of the open ecosystem. We’re very supportive of the Ultra Ethernet consortium. But I don’t believe that, that is a limiter to our ability to build large-scale systems. I think Ethernet is something that many in the industry feel will be the long-term answer for networking in these systems, and we have a lot of work that we’re doing with internally as well as with our customers and partners to enable that.
Mitch Haws: Ready for our final question?
Operator: Thank you. Our last question is from Harsh Kumar with Piper Sandler. Please proceed with your question.
Harsh Kumar: Yes, hey. Hey, thank you for letting me ask a question. Lisa, I had two. One is for you and one perhaps for Jean. So we recently hosted a very large custom GPU company for a call. And they talked about kind of mega data centers coming up in the near to mid-term, talking about not potentially in the 100,000-plus range and maybe up to 1 million. So as we look out at these kinds of data centers from an architectural standpoint, it’s not a situation where Winner takes all where if somebody gets in they kind of get all the sockets? Or will the reliance where your chip perhaps or your board can be placed right next to somebody else’s board maybe on a separate line. Just help us understand how something like that would play out if there’s a there’s a chance for more than 1 competitor to play in such a large data center?
Lisa Su: Yes. So I’ll talk maybe a little bit more at the strategic level. I think as we look at sort of how AI shapes up over the next few years, there are customers who would be looking at very large training environments and perhaps that’s what you’re talking about. I think our view of that is, number one, we view that as a very attractive area for AMD. It’s an area where we believe we have the technology to be very competitive there. And I think the desire would be to have optionality in terms of how you build those out. So obviously, a lot has to happen between here and there. But I think your overarching question of is it winner takes all. I don’t think so. That being the case, we believe that AMD is very well positioned to play in those, let’s call it, of very large-scale systems.
