AMD CEO Says EPYC Turin “Zen 5” CPUs Deliver Significant Performance & Efficiency Gains, MI300 To Drive Over $2B Revenue In 2024, Talks Arm PC Competition

During their Q3 2023 earnings call, AMD CEO, Dr. Lisa Su, talked about the upcoming EPYC "Turin" CPU & Instinct "MI300" GPU portfolio for Data Centers/AI while also commenting on the surging competition from Arm-based chips in the PC segment.

Following its Q3 2023 earnings, AMD CEO commented about its next-gen CPU/GPU portfolio and how it will further drive revenue up.

Starting with EPYC, Dr. Lisa Su stated that the next-gen EPYC Turin family of server CPUs featuring the Zen 5 core architecture was on track for launch in 2024. This will mark two years since the launch of AMD's Zen 4-based Genoa CPUs which were launched in late 2022. The next-gen Turin family is said to deliver significant performance and efficiency gains. AMD also confirmed that the first Turin CPUs are already running in the labs of their top customers and partners with the early responses being very strong and in favor of the Turing family.

We are building on this momentum with our next-gen Turin server processors based on our new Zen 5 core that delivers significant performance and efficiency gains. Turin is in the labs of our top customers and partners now, and customer feedback has been very strong and we're on track to launch in 2024.

Dr. Lisa Su - AMD CEO (Q3 2023 Earnings Call)

AMD just completed its Zen 4 family of EPYC CPUs which comes in various flavors such as Genoa, Genoa-X, Bergamo, and Siena. The Zen 5 family is going to be just as diverse, offering higher core counts, more cache, and a revamped architecture that is certainly going to drive those efficiency & performance numbers up.

Further diving into the EPYC figures, AMD reported that the 4th Gen EPYC lineup saw its record quarterly revenue & the company also witnessed revenue share gains in the server CPU segment.

On the GPU, or should I say APU, side of things, AMD confirmed that it has struck a deal with multiple large hyper-scale customers who will be deploying the Instinct MI300 accelerators for powering their data center and AI requirements. The company continues to progress with the bring-up and validation of both MI300A and MI300X accelerators and the performance is said to exceed their expectations.

In the Data Center, multiple large hyperscale customers committed to deploy Instinct MI300 accelerators, supported by our latest ROCm software suite and the growing adoption of an open hardware-agnostic software ecosystem.

On the hardware side, bring-up and validation of our MI300A and MI300X accelerators continue progressing to plan with performance now meeting or exceeding our expectations.

Production shipments of Instinct MI300A APUs started earlier this month to support the El Capitan Exascale Supercomputer, and we are on track to begin production shipments of Instinct MI300x GPU accelerators to lead cloud and OEM customers in the coming weeks.

Dr. Lisa Su - AMD CEO (Q3 2023 Earnings Call)

Furthermore, AMD also confirms that the production shipments of the Instinct MI300A APUs that power the EL Capitan supercomputer began earlier in October, and the production shipments of MI300X GPU accelerators are expected to commence in the coming week.

Talking about revenue, AMD CEO states that given the traction surrounding the MI300 AI chips, the company expects the Data enter GPU revenue alone to climb up to approximately $400 Million US by the end of 2023. With volume ramping up in 2024, the company expects that its revenue will climb to new heights and even has a chance of exceeding $2 Billion.

Based on the rapid progress we are making with our AI road map execution and purchase commitments from cloud customers, we now expect Data Center GPU revenue to be approximately $400 million in the fourth quarter and exceed $2 billion in 2024 as revenue ramps throughout the year. This growth would make MI300 the fastest product to ramp to $1 billion in sales in AMD history. I look forward to sharing more details on our progress at our December AI event. Turning to our Client segment.

Dr. Lisa Su - AMD CEO (Q3 2023 Earnings Call)

AMD expects MI300 to be the fastest product ramp to $1 Billion in sales in the entire history of AMD.

Just like Intel, it looks like AMD also appreciates another competitor (Qualcomm) within the PC space but they also don't seem very worried at the moment. AMD calls their relationship with Arm being a partner and they have even used Arm in certain products. Lisa Su believes that the AI PC market is going to be a bigger game changer and that's certainly where Intel, Apple & Qualcomm are targeting most of their efforts.

Yeah. Sure, Chris. Thanks for the question. So, look, the way we think about ARM, ARM is a partner in many respects so we use ARM throughout parts of our portfolio.

I think as it relates to PCs, x86 is still the majority of the volume in PCs. And if you think about sort of the ecosystem around x86 and Windows, I think it's been a very robust ecosystem. What I'm most excited about in PCs is actually the AI PC. I think the AI PC opportunity is an opportunity to redefine what PCs are in terms of productivity tool and really sort of operating on sort of user data.

And so, I think we're at the beginning of a wave there. We're investing heavily in Ryzen AI and the opportunity to really broaden sort of the AI capabilities of PCs going forward. And I think that's where the conversation is going to be about. It's going to be less about what instructions that you're using and more about what experience are you delivering to customers.

And from that standpoint, I think that we have a very exciting portfolio that I feel good about over the next couple of years.

Dr. Lisa Su - AMD CEO (Q3 2023 Earnings Call)

Lisa says that AMD's Ryzen AI technology is a great aspect of its latest CPUs and one that will further drive the AI revolution in the consumer segment. AMD also plans to further expand its Ryzen AI portfolio across various segments in the future so stay tuned for that too.

On the AMD Ryzen 7000 and client CPU front, AMD saw more than double the revenue growth and strong demand for its latest Zen 4-based notebook and desktop portfolio. The Ryzen AI family that mostly encapsulates the Ryzen 7040 APUs was the major driver this quarter with increased CPU shipments.

Sales of our Ryzen 7000 processors featuring our industry-leading Ryzen AI on-chip accelerator, grew significantly in the quarter as inventory levels in the PC market normalized and demand began returning to seasonal patterns. Revenue for our latest-generation client CPUs powered by our Zen 4 core more than doubled sequentially as we saw strong demand for our Ryzen 7000 Series notebook and desktop processors that deliver both leadership energy efficiency and performance across a wide range of workloads.

Dr. Lisa Su - AMD CEO (Q3 2023 Earnings Call)

AMD has a major AI event planned for the 6th of December where the company will talk about some of the major developments in the EPYC & Instinct families along with formally launching the MI300 series.