Advanced Micro Devices, Inc. (NASDAQ:AMD) Q4 2022 Earnings Call Transcript

Lisa Su: Sure, Tim. So let me make a couple of points. I think all of us, as we participate in the PC industry, there are various parts of the ecosystem that we work with. We work with our OEMs we work with our retail partners. We work with our distribution and channel partners. And we’re all working together to work through sort of the elevated inventory levels. As I said, I think we’ve made good progress on that. And I think we have much better visibility into the various pieces. As it relates to the pricing environment, I do believe that the pricing environment is – particularly when you’re clearing older inventory or older generation products, is a bit more competitive. And we see that. As we look forward, the way we’re modeling the client business is that we are modeling gross margins to be less than corporate average.

That’s different than our previous modeling. So previously, client was more like at corporate average. And I think given the – I think the nice thing is our business is quite a bit more diversified now. And so with our Data Center, Embedded businesses really being strong growth drivers, I think Client continues to be a good market overall. And as we work through this, we will see some of the normalization that Jean mentioned.

Timothy Arcuri: Thank you well Lisa. And then I guess just as the last thing, you went through some puts and takes on the different pieces for the year, but I just wondered if I could just get you to kind of give a bias for what you think that the revenue for the year is the bias. It sounds to me like the bias is more up than down, but I just wanted to give you a chance to maybe confirm that or not? Thanks.

Lisa Su: I think, Tim, the answer is yes. But again, let’s work through the next couple of quarters. And we feel good about how our products are positioned, and we just need to work through the macro and see how that plays out.

Timothy Arcuri: Thanks.

Ruth Cotter: Great, thank you. That concludes today’s earnings call. Again, welcome to Jean, and we’re delighted to have her on board, and much gratitude to Devinder for his 39 years of service and all his leadership and we look forward to touching base with all participants throughout the quarter. Thank you.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.