超微半導體 (AMD) 2017 Q3 法說會逐字稿

Greetings, and welcome to Advanced Micro Devices Third Quarter 2017 Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Laura Graves. Please go ahead.

您好，歡迎參加 AMD 2017 年第三季電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興介紹您的主持人勞拉·格雷夫斯。請繼續。

Thank you, and welcome to AMD's Third Quarter 2017 Conference Call. By now you should have had the opportunity to review a copy of our earnings release and the CFO commentary and slides. If you have not reviewed these documents, they can be found on AMD's website at ir.amd.com.

謝謝，歡迎參加 AMD 2017 年第三季電話會議。現在您應該已經有機會查看我們的收益報告副本以及財務長的評論和投影片。如果您尚未查看這些文檔，可以在 AMD 網站 ir.amd.com 上找到。

Participants on today's call are: Dr. Lisa Su, 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 amd.com.

參加今天電話會議的人員有：總裁兼執行長蘇姿豐博士；以及我們的資深副總裁、財務長兼財務長 Devinder Kumar。這是一次現場通話，並將透過 amd.com 上的網路直播重播。

I would like to highlight a couple of important dates for you. Lisa Su will present at the Crédit Suisse 21st Annual Technology, Media and Telecom Conference on Tuesday, November 28, and our fourth quarter quiet time will begin at the close of business on Friday, December 15, 2017.

我想向你們強調幾個重要的日期。Lisa Su 將於 11 月 28 日星期二出席瑞士信貸第 21 屆年度技術、媒體和電信會議，我們的第四季度靜默時間將於 2017 年 12 月 15 日星期五下班後開始。

Today's discussion contains forward-looking statements based on the environment as we currently see it. Those statements are based on current beliefs, assumptions and expectations, speak only as of the current date, and as such, involve risks and uncertainties that could cause actual results to differ materially from our expectations.

今天的討論包含基於我們目前所見環境的前瞻性陳述。這些聲明是基於當前的信念、假設和期望，僅代表當前日期的觀點，因此涉及可能導致實際結果與我們的預期有重大差異的風險和不確定性。

Additionally, please note that we will be referring to non-GAAP financials during this call, except for revenue and segment operational results, which are on a GAAP basis. The non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measure in the press release and CFO commentary posted on our website at quarterlyearnings.amd.com. Please refer to the cautionary statements in today's earnings press release and CFO commentary for more information. You'll also find detailed discussions about our risk factors in our filings with the SEC and in particular, AMD's quarterly report on Form 10-Q for the quarter ended July 1, 2017.

此外，請注意，在本次電話會議中，我們將參考非 GAAP 財務數據，但收入和分部營運結果除外，因為它們是基於 GAAP 的。所引用的非 GAAP 財務指標與我們網站 quarterlyearnings.amd.com 上發布的新聞稿和 CFO 評論中最直接可比較的 GAAP 財務指標相協調。請參閱今天的收益新聞稿和財務長評論中的警告聲明以獲取更多資訊。您也可以在我們向美國證券交易委員會提交的文件中找到有關我們的風險因素的詳細討論，特別是 AMD 截至 2017 年 7 月 1 日的 10-Q 表季度報告。

With that, I will hand the call over to Lisa. Lisa?

說完，我會把電話交給麗莎。麗莎？

Thank you, Laura, and good afternoon to all those listening in today. Q3 was a strong quarter for us, demonstrating the significant growth potential of AMD, driven by our high-performance products, leadership IP and long-term strategy.

謝謝你，蘿拉，祝今天收聽節目的各位下午好。第三季度對我們來說是一個強勁的季度，展示了 AMD 巨大的成長潛力，這得益於我們的高效能產品、領先的 IP 和長期策略。

Revenue increased 26% from a year ago to $1.64 billion. Gross margin also improved significantly year-over-year as we achieved profitability and generated positive free cash flow in the quarter.

營收較上年同期成長26%，達16.4億美元。由於我們在本季度實現盈利並產生正的自由現金流，毛利率也比去年同期大幅提高。

Looking at our Computing and Graphics segment, we made excellent progress in Q3 as the continued success of our Ryzen family of CPUs, combined with significant graphics growth, resulted in a 74% increase in Computing and Graphics segment revenue year-over-year.

縱觀我們的計算和圖形部門，我們在第三季度取得了出色的進展，因為我們的 Ryzen 系列 CPU 的持續成功，加上圖形的顯著增長，導致計算和圖形部門收入同比增長 74%。

Client computing revenue increased by a strong double-digit percentage from a year ago as we expanded our Ryzen processor family and saw increased demand in the desktop market. Ryzen 5 and Ryzen 7 processors have ramped well in the desktop channel market, reaching 40% to 50% desktop market share at strategic e-tailers worldwide. In addition, OEM adoption is accelerating as customers ramp shipments in advance of the holiday sales cycle.

由於我們擴大了 Ryzen 處理器系列並看到桌上型電腦市場的需求增加，客戶端運算收入較去年同期實現了強勁的兩位數成長。Ryzen 5 和 Ryzen 7 處理器在桌上型電腦通路市場表現良好，在全球策略電子零售商中佔據了 40% 至 50% 的桌上型電腦市場份額。此外，隨著客戶在假日銷售週期之前增加出貨量，OEM 採用率也在加速成長。

In the quarter, we launched additional Ryzen CPUs, including Ryzen 3, expanding our reach in the mainstream and value market segments; Ryzen Threadripper processors, returning AMD to the high-end desktop market; and Ryzen PRO-based offerings, which have been adopted by all major commercial PC providers, including Dell, Lenovo and HP, expanding our presence in the commercial space.

本季度，我們推出了包括 Ryzen 3 在內的更多 Ryzen CPU，擴大了我們在主流和價值市場領域的影響力； Ryzen Threadripper處理器，讓AMD重返高端桌面市場；以及基於 Ryzen PRO 的產品，這些產品已被所有主要商用 PC 供應商採用，包括戴爾、聯想和惠普，擴大了我們在商業領域的影響力。

Also in the quarter, we qualified and began early shipments of our Ryzen Mobile processors, combining our Zen CPU cores and Vega GPU cores in a high-performance APU designed to power ultra-thin and 2-in-1 notebooks. Acer, HP and Lenovo plan to launch their initial Ryzen Mobile-based systems in the coming weeks, and we expect an expanded assortment of premium notebooks to launch in Q1 2018.

此外，在本季度，我們對 Ryzen Mobile 處理器進行了認證並開始提前發貨，該處理器將 Zen CPU 核心和 Vega GPU 核心結合在高性能 APU 中，旨在為超薄和二合一筆記型電腦提供動力。宏碁、惠普和聯想計畫在未來幾週內推出首批基於 Ryzen Mobile 的系統，我們預計將於 2018 年第一季推出更多種類的高階筆記型電腦。

In graphics, we achieved record GPU revenue in the quarter based on significantly improved ASPs and higher unit shipments from a year ago. These financial improvements were driven by the launch of our Vega-based GPUs and its strong demand for our Polaris products across both gaming and blockchain markets. In the quarter, we expanded further into premium portions of the graphics market with new consumer and professional GPU solutions. Our Radeon RX Vega family of GPUs launched in the channel, targeted at the enthusiast class gaming segment. Revenue from initial shipments of these products is significantly outpacing previous premium Radeon GPUs.

在圖形方面，由於平均售價大幅提高且單位出貨量較去年同期增加，我們在本季度實現了創紀錄的 GPU 收入。這些財務狀況的改善得益於我們基於 Vega 的 GPU 的推出以及遊戲和區塊鏈市場對我們的 Polaris 產品的強勁需求。本季度，我們透過新的消費者和專業 GPU 解決方案進一步擴展到圖形市場的高端領域。我們的 Radeon RX Vega 系列 GPU 已在頻道推出，主要針對發燒級遊戲玩家群。這些產品初始出貨量的收入遠遠超過先前的高階 Radeon GPU。

Radeon Instinct MI25, our GPU compute solution, also began shipping in volume to mega cloud data center customers, and Radeon Pro WX 9100 professional graphics cards, targeting the high-end professional content creation market, started shipping late in the quarter. In addition, we saw expanded AMD Radeon adoption with cloud customers in the quarter, driven by our investments in GPU compute. Amazon Web Services announced that they have deployed AMD Radeon Pro technology to power Amazon AppStream 2.0, driving GPU-accelerated cloud delivery of virtual applications. We also announced a collaboration with Baidu to build more flexible and powerful AI computing platforms based on the deployment of our Radeon Instinct GPUs in their data centers.

我們的 GPU 運算解決方案 Radeon Instinct MI25 也開始向大型雲端資料中心客戶大量出貨，而高階專業內容創作市場的 Radeon Pro WX 9100 專業顯示卡也於本季末開始出貨。此外，由於我們對 GPU 運算的投資，本季我們看到雲端客戶對 AMD Radeon 的採用有所擴大。亞馬遜網路服務宣布已部署 AMD Radeon Pro 技術來支援 Amazon AppStream 2.0，推動 GPU 加速的虛擬應用程式雲端交付。我們也宣布與百度合作，在其資料中心部署我們的 Radeon Instinct GPU，建構更靈活、更強大的人工智慧運算平台。

Turning to our Enterprise, Embedded and Semi-Custom segment. Revenue was approximately flat year-over-year and increased 46% sequentially. Sequential growth was based on a seasonal increase in semi-custom revenue as well as growth in server revenue from our EPYC data center processors. Our semi-custom business continues to perform as expected for the year, and we anticipate seasonal demand to remain healthy as our customers enter the holiday sales cycle with Sony's PlayStation 4 Pro and Microsoft's Xbox One X.

轉向我們的企業、嵌入式和半客製化領域。營收與去年同期基本持平，比上一季成長 46%。連續成長基於半客製化收入的季節性成長以及來自我們的 EPYC 資料中心處理器的伺服器收入的成長。我們的半客製化業務今年繼續表現如預期，隨著我們的客戶進入索尼 PlayStation 4 Pro 和微軟 Xbox One X 的假日銷售週期，我們預計季節性需求將保持健康。

In our server business, the server revenue increased from a year ago as we began ramping sales of our EPYC data center processors to key cloud and OEM customers. Customer engagement with our EPYC processors is growing as the true performance and features of the new platform are tested and implemented, with Tencent and JD.com joining the list of data center customers planning to deploy EPYC processors.

在我們的伺服器業務中，隨著我們開始向主要雲端和 OEM 客戶增加 EPYC 資料中心處理器的銷售，伺服器收入較一年前增加。隨著新平台的真實效能和功能的測試和實施，客戶對我們的 EPYC 處理器的參與度正在不斷提高，騰訊和京東也加入了計劃部署 EPYC 處理器的資料中心客戶名單。

In a short period, 3 of the Super 7 mega data center providers have publicly announced plans to deploy EPYC-based products into their Hyperscale environments, including Baidu, Microsoft Azure and Tencent, and we have strong engagements with other major cloud providers. In addition, HP Enterprise and Dell are in the process of bringing their first EPYC-based platforms to market in Q4, and we are actively engaged with them to accelerate testing and validation of EPYC-based systems in data centers across a broad number of large and medium enterprise customers. We remain confident and focused on the steady expansion of our data center presence over the coming quarters based on the high performance and rich feature set of the EPYC product.

在短時間內，全球七大資料中心供應商中的三家已公開宣布計劃在其超大規模環境中部署基於 EPYC 的產品，其中包括百度、Microsoft Azure 和騰訊，並且我們與其他主要雲端供應商也保持著密切的合作。此外，惠普企業和戴爾將於第四季度將其首款基於 EPYC 的平台推向市場，我們正積極與他們合作，以加速在廣大大中型企業客戶的資料中心對基於 EPYC 的系統進行測試和驗證。我們仍然充滿信心，並專注於在未來幾季基於 EPYC 產品的高效能和豐富的功能集穩步擴大我們的資料中心業務。

In addition, as a part of our ongoing strategy to monetize our differentiated IP, we successfully closed a patent licensing transaction in the quarter.

此外，作為我們持續將差異化智慧財產權貨幣化的策略的一部分，我們在本季成功完成了一項專利授權交易。

In closing, we are very pleased with our third quarter results. Throughout 2017, we have delivered significant year-on-year revenue growth and margin expansion as we achieved multiple major product, customer and market milestones. As we head into the final quarter of the year, we look forward to continuing to accelerate our business. 2017 annual revenue growth is now tracking above our previous estimates, and we remain confident in our ability to make AMD one of the premier long-term growth companies in the tech industry.

最後，我們對第三季的業績非常滿意。2017年全年，我們實現了多項重要的產品、客戶和市場里程碑，營收和利潤率均較去年同期大幅成長。隨著我們進入今年最後一個季度，我們期待繼續加速我們的業務。2017 年的年度營收成長目前高於我們先前的預期，我們仍然有信心將 AMD 打造為科技業首屈一指的長期成長公司之一。

Now I'd like to turn the call over to Devinder to provide some additional color on our third quarter financial performance.

現在我想將電話轉給 Devinder，讓他為我們第三季的財務表現提供一些額外的資訊。

Thank you, Lisa, and good afternoon, everyone. I'm pleased with our performance for the third quarter of 2017. We increased revenue 26% year-over-year, expanded gross margin and achieved both operating and net income, with net income of $110 million and diluted earnings of $0.10 per share. We are executing well with our strongest portfolio of products in many years, including our Ryzen, EPYC and Radeon Vega offerings. Let me provide some specifics for the third quarter.

謝謝你，麗莎，大家午安。我對我們 2017 年第三季的表現感到滿意。我們的營收年增了 26%，毛利率有所提高，實現了營業收入和淨收入雙豐收，淨收入為 1.1 億美元，每股攤薄收益為 0.10 美元。多年來，我們憑藉最強大的產品組合表現出色，其中包括 Ryzen、EPYC 和 Radeon Vega 產品。讓我提供一些第三季的具體情況。

Revenue of $1.64 billion grew 26% year-over-year and 34% sequentially. This is our highest quarterly revenue since the fourth quarter of 2011. Year-over-year growth was primarily due to our Computing and Graphics segment, while sequential growth was driven by the Enterprise, Embedded and Semi-Custom segment revenue seasonality as well as higher Computing and Graphics segment revenue. We also took another step in our IP monetization efforts by closing a patent licensing agreement that had a positive impact on both our segments.

營收為 16.4 億美元，年增 26%，季增 34%。這是我們自2011年第四季以來最高的季度收入。年比成長主要歸功於我們的計算和圖形部門，而環比增長則受到企業、嵌入式和半定制部門收入季節性以及計算和圖形部門收入增加的推動。我們也透過達成專利授權協議在智慧財產權貨幣化方面邁出了新的一步，這對我們的兩個部門都產生了積極的影響。

Gross margin was 35%, up 4 percentage points year-over-year, primarily driven by the benefit of IP-related revenue and a richer mix from the Computing and Graphics segment, which were partially offset by cost associated with our GLOBALFOUNDRIES Wafer Supply Agreement for wafers purchased at another foundry. We continue to make good progress on the ramp of our new high-performance products, which had a positive impact on our gross margins.

毛利率為 35%，比去年同期增長 4 個百分點，主要得益於 IP 相關收入的收益以及計算和圖形部門更豐富的產品組合，但與我們在另一家代工廠購買的 GLOBALFOUNDRIES 晶圓供應協議相關的成本部分抵消了這一收益。我們在新型高性能產品的推廣上繼續取得良好進展，這對我們的毛利率產生了積極影響。

Operating expenses were $419 million compared to $353 million a year ago. The increase was primarily due to higher R&D-related investments and expenses related to annual employee incentive programs driven by our better financial performance. Operating income was $155 million in the third quarter of 2017, a solid improvement from $70 million a year ago. Third quarter net interest expense, taxes and other was $45 million, up slightly from $43 million a year ago. Lower interest expense from a year ago was largely offset by withholding taxes for licensing revenue.

營運費用為 4.19 億美元，而去年同期為 3.53 億美元。成長的主要原因是，由於我們財務表現較好，研發相關投資和年度員工激勵計畫相關費用增加。2017 年第三季的營業收入為 1.55 億美元，較去年同期的 7,000 萬美元大幅成長。第三季淨利息支出、稅金及其他為 4,500 萬美元，略高於去年同期的 4,300 萬美元。與去年相比，利息支出降低，但大部分被授權收入的預扣稅所抵銷。

Net income was $110 million or diluted earnings of $0.10 per share as compared to $27 million or $0.03 per share a year ago. The diluted earnings per share calculations for the third quarter of 2017 was based on 1.143 billion shares, which includes 100.6 million shares related to our 2026 convertible notes. Adjusted EBITDA was $191 million, compared to $103 million a year ago.

淨收入為 1.1 億美元，即每股攤薄收益 0.10 美元，去年同期為 2,700 萬美元，即每股攤薄收益 0.03 美元。2017 年第三季的稀釋每股盈餘計算是基於 11.43 億股，其中包括與我們的 2026 年可轉換票據相關的 1.006 億股。調整後的 EBITDA 為 1.91 億美元，而去年同期為 1.03 億美元。

Now turning to the business segments. Computing and Graphics segment revenue was $819 million, up 74% year-over-year, primarily due to strong sales of our Radeon graphics and Ryzen desktop processors. Computing and Graphics segment operating income was $70 million compared to a loss of $66 million a year ago. The solid improvement was primarily due to higher revenue.

現在轉向業務部門。計算和圖形部門營收為 8.19 億美元，年增 74%，主要得益於我們的 Radeon 顯示卡和 Ryzen 桌上型電腦處理器的強勁銷售。計算和圖形部門的營業收入為 7,000 萬美元，而去年同期的虧損為 6,600 萬美元。這一穩定成長主要歸功於收入的增加。

Enterprise, Embedded and Semi-Custom revenue was $824 million, approximately flat year-over-year due to lower semi-custom SoC sales partially offset by IP-related revenue. Additionally, server revenue increased from a year ago driven by the increased sales of EPYC products. As you heard earlier from Lisa, customer interest and deployment plans are strong. Operating income was $84 million, down $52 million from $136 million a year ago, primarily due to higher costs.

企業、嵌入式和半客製化收入為 8.24 億美元，與去年同期基本持平，原因是半客製化 SoC 銷售額下降，但被 IP 相關收入部分抵銷。此外，受EPYC產品銷售成長的推動，伺服器營收較去年同期有所成長。正如您之前從 Lisa 那裡聽到的，客戶興趣濃厚，部署計劃也十分強勁。營業收入為 8,400 萬美元，比去年的 1.36 億美元下降 5,200 萬美元，主要原因是成本上升。

Turning to the balance sheet. Our cash, cash equivalents and marketable securities totaled $879 million at the end of the quarter, up from $844 million in the prior quarter, primarily due to higher revenue. Inventory at the end of the quarter was $794 million, down 5% from $833 million in the prior quarter.

轉向資產負債表。截至本季末，我們的現金、現金等價物和有價證券總額為 8.79 億美元，高於上一季的 8.44 億美元，這主要歸因於收入增加。本季末庫存為 7.94 億美元，較上一季的 8.33 億美元下降 5%。

Long-term debt on the balance sheet was $1.36 billion. Total principal debt, including our secured revolving line of credit, was $1.74 billion. In the third quarter, we used $28 million from our lower interest secured revolving line of credit to pay down long-term debt, which has a higher interest rate. Free cash flow was $32 million compared to $20 million in the year-ago period.

資產負債表上的長期債務為13.6億美元。總本金債務（包括我們的擔保循環信用額度）為 17.4 億美元。第三季度，我們使用了 2,800 萬美元的低利率擔保循環信用額度來償還利率較高的長期債務。自由現金流為 3,200 萬美元，而去年同期為 2,000 萬美元。

Before turning to our outlook for the fourth quarter of 2017, which is a 13-week quarter, let me remind you for comparative purposes that the fourth quarter of 2016 was a 14-week quarter. For the fourth quarter of 2017, we expect revenue to decrease approximately 15% sequentially, plus or minus 3%. At the midpoint, this equates to revenue growth of approximately 26% year-over-year; non-GAAP gross margin to be approximately 35%; non-GAAP operating expenses to be approximately $410 million; non-GAAP interest expense, taxes and other to be approximately $30 million; and inventory to be down sequentially. We now expect 2017 annual revenue to increase by greater than 20% over 2016 compared to the prior guidance of mid- to high-teens percentage growth. We do not anticipate significant changes to the diluted share count in the fourth quarter, and you can find additional information regarding the share count in the CFO commentary, which is posted online.

在展望 2017 年第四季（為期 13 週）之前，為了進行比較，我想提醒大家，2016 年第四季為期 14 週。對於 2017 年第四季度，我們預計營收將環比下降約 15%，上下浮動 3%。以中間值計算，這相當於收入年增約 26%；非公認會計準則毛利率約為35%；非公認會計準則營運費用約為 4.1 億美元；非公認會計準則利息支出、稅金及其他約為 3,000 萬美元；庫存將陸續下降。我們現在預計 2017 年的年收入將比 2016 年成長 20% 以上，而先前預測的成長幅度為中高百分比。我們預計第四季度稀釋股數不會發生重大變化，您可以在網路上發布的財務長評論中找到有關股數的更多資訊。

In closing, the third quarter was a strong quarter, and we are pleased with the momentum of our new premium products. We are making solid progress towards our growth and margin expansion objectives, and as our financial performance improves, we remain committed to investing in our multi-generational road maps and achieving our long-term financial targets.

總而言之，第三季表現強勁，我們對新高端產品的勢頭感到滿意。我們正在朝著成長和利潤擴張目標穩步前進，隨著財務表現的改善，我們將繼續致力於投資於我們的多代路線圖並實現我們的長期財務目標。

With that, I'll turn it back to Laura for the Q&A session. Laura?

說完這些，我將把時間交還給勞拉，進行問答環節。勞拉？

Thank you, Devinder. Operator, we're ready for our first question, please.

謝謝你，Devinder。接線員，我們已經準備好回答我們的第一個問題了。

(Operator Instructions) Our first question today is coming from Vivek Arya from Bank of America Merrill Lynch.

（操作員指示）我們今天的第一個問題來自美銀美林的 Vivek Arya。

For the first one, I was wondering if you could help quantify the benefit of your IP license in the 2 different segments. And is this a one-off? Or do you see ongoing benefits in Q4 and beyond?

對於第一個問題，我想知道您是否可以幫助量化您的 IP 授權在兩個不同領域的好處。這是一次性事件嗎？或者您認為第四季及以後會有持續的收益？

Sure, Vivek. Hey, thanks for the question. We did close a IP-related transaction. It was a patent licensing transaction. The revenue and benefit was spread over both segments. When we look at it going forward, we have a pipeline of IP deals, and we're constantly looking at them. And from our standpoint, we're working several deals in progress. So we believe that IP-related revenue will be a factor as we go forward, but our primary focus is on the product-related revenue and the product-related growth.

當然，維韋克。嘿，謝謝你的提問。我們確實完成了一項與知識產權相關的交易。這是一項專利授權交易。收入和收益分佈在兩個部門。當我們展望未來時，我們擁有一系列智慧財產權交易，並且我們將不斷關注它們。從我們的角度來看，我們正在進行幾筆交易。因此，我們相信 IP 相關收入將成為我們未來發展的因素，但我們的主要關注點是產品相關收入和產品相關成長。

So Vivek, just to remind you, I mean, in line, you've heard us talk about our IP monetization efforts, and this is very much in line with that. And as Lisa said, the benefit is spread over both segments.

所以 Vivek，只是想提醒你，我的意思是，你已經聽到我們談論我們的 IP 貨幣化努力，這與此非常一致。正如麗莎所說，利益惠及兩個部分。

Got it. And then for my follow-up, Lisa, when I look at your Q4 outlook, it's sort of in line with seasonality, perhaps somewhat better. Can you give us some more color around the adoption of your -- the new Ryzen Mobile portfolio, but more importantly, your EPYC products? When will we start to see a more tangible contribution from your EPYC product sales?

知道了。然後，對於我的後續問題，麗莎，當我查看您的第四季度展望時，它有點符合季節性，甚至可能更好一些。您能否向我們詳細介紹一下您的新款 Ryzen Mobile 產品組合，以及更重要的是您的 EPYC 產品？我們什麼時候才能看到您的 EPYC 產品銷售帶來更實質的貢獻？

Yes, absolutely, Vivek. So look, we are very pleased with how the revenue ramp is going in general on our new products. When you look at the Q4 guidance, year-over-year, we'll be up 26%, so we're really accelerating the business as we go into the second half of the year. As you know, our business is typically seasonal. And so Q3 is the peak, and then we're down seasonally from Q3 to Q4 due to some of the semi-custom revenue. But what we see going into the fourth quarter is we see a strong ramp of new products. We see Ryzen continuing to ramp. We will ship volume of Ryzen Mobile in Q4 and then more in the first half of the year. We will see a ramp of EPYC, and we will also see an OEM ramp of Vega. In terms of the headwinds, we have the semi-custom seasonality, and we're also predicting that there will be some leveling off of some of the cryptocurrency demand. As we look at it, it continues to be a factor, but we've seen restocking in the channels and stuff like that. So we're being a little bit conservative on the cryptocurrency side of the equation.

是的，絕對是，維韋克。所以，我們對新產品的整體營收成長感到非常滿意。當您查看第四季度指引時，我們會發現與去年同期相比，我們的成長幅度為 26%，因此，隨著進入下半年，我們確實在加速業務發展。如您所知，我們的業務通常具有季節性。因此，第三季度是高峰，然後由於部分半定制收入，從第三季度到第四季度，我們的收入出現季節性下降。但進入第四季度，我們看到新產品的強勁成長。我們看到 Ryzen 繼續蓬勃發展。我們將在第四季出貨大量 Ryzen Mobile，並在上半年出貨更多。我們將看到 EPYC 的升級，我們還將看到 Vega 的 OEM 升級。就不利因素而言，我們有半客製化的季節性，我們也預測部分加密貨幣需求將會趨於平穩。我們認為，這仍然是一個因素，但我們已經看到渠道補貨等類似情況。因此，我們在加密貨幣方面持稍微保守的態度。

Next question is coming from David Wong from Wells Fargo.

下一個問題來自富國銀行的 David Wong。

Can you give us some idea of whether you have any semi-custom wins that might bring in new revenue streams in 2018? And specifically, are you in any discussions with potential customers for semi-custom designs in autonomous driving or data center processor and accelerator applications?

您能否告訴我們，您是否有任何半客製化勝利可能在 2018 年帶來新的收入來源？具體來說，您是否與潛在客戶討論自動駕駛或資料中心處理器和加速器應用的半客製化設計？

Yes, sure, David. So look, the semi-custom business continues to be a business that's performing well for us. So we are -- as we go into 2018, we are expanding the customer set beyond our traditional Sony and Microsoft game consoles. Actually, this past quarter, we announced that Atari will be adopting a customized processor for their next generation. We also have a number of new opportunities that we continue to work, and they are in markets outside of game console, including some of the markets that you mentioned. So overall, we do expect there will be some puts and takes in the semi-custom business as we go into 2018 and there will be some product revenue that will ramp, particularly in the second half of 2018.

是的，當然，大衛。所以，看起來，半客製化業務仍然是我們表現良好的業務。因此，隨著我們進入 2018 年，我們將擴大客戶群，超越傳統的索尼和微軟遊戲機。實際上，上個季度，我們宣布 Atari 將在其下一代產品中採用客製化處理器。我們還有許多新的機會繼續努力，這些機會位於遊戲機以外的市場，包括您提到的一些市場。因此，總體而言，我們確實預計，隨著進入 2018 年，半客製化業務將會出現一些收益，並且一些產品收入將會增加，特別是在 2018 年下半年。

Our next question is coming from Mark Lipacis from Jefferies.

我們的下一個問題來自 Jefferies 的 Mark Lipacis。

First one on the gross margin outlook for Q4, it looks like it's flattish versus Q3, and I guess I might have expected the -- a sequential increase given that you will likely have a better mix. So I'm hoping you can reconcile that. I'm wondering if licensing had an impact on that or it's just fixed cost absorption.

首先關於第四季的毛利率前景，看起來與第三季相比持平，而且我想我可能已經預料到——考慮到你們可能會有更好的組合，它將環比增長。所以我希望你能接受這一點。我想知道許可是否對此有影響，或者這只是固定成本吸收。

Yes. Let me start, Mark, and then maybe Devinder will add. So look, we have multiple puts and takes in the business as we look at gross margin. When we look at gross margin in Q3, we were pleased with the gross margin progress, and that came from both the richer mix of our Computing and Graphics revenue year-over-year as well as some benefit from the IP-related transaction. As we go into Q4, we have new products continuing to ramp, so you'll see Ryzen, Vega and EPYC ramp. And the primary driver for the Q4 gross margin is the product revenue, and we do have sort of the headwind of not having the benefit of the IP revenue in Q3. So those are the puts and takes. But the main point is the new product revenue is ramping and the gross margins are accretive, and that's contributing to our Q4 gross margin outlook.

是的。讓我先開始，馬克，然後也許德文德會補充。所以，當我們看毛利率時，我們在業務中有多個投入和產出。當我們查看第三季的毛利率時，我們對毛利率的成長感到滿意，這既來自於我們計算和圖形收入組合的同比豐富，也來自於 IP 相關交易的一些好處。隨著進入第四季度，我們的新產品不斷推出，因此您將看到 Ryzen、Vega 和 EPYC 的推出。第四季毛利率的主要驅動力是產品收入，而我們確實面臨第三季沒有 IP 收入優勢的不利因素。這就是所得與所得。但重點是新產品收入正在增加，毛利率正在增加，這有助於我們第四季的毛利率前景。

Yes. Mark, if you can -- if I can just add, if you look at the margin trend compared to 2016, 2016, we had 31% gross margin and we expect to be at 34% this year, and that's primarily based on the strength of the new products that Lisa referenced. And from a long-term model standpoint, we are on track with what we laid out in the Financial Analyst Day of going from 31% to 34% and then expecting to be greater than 36% in 2018 on the strength of the new premium products that are ramping into 2018.

是的。馬克，如果你可以的話——如果我可以補充一下，如果你看一下與 2016 年相比的利潤趨勢，2016 年我們的毛利率為 31%，我們預計今年將達到 34%，這主要基於麗莎提到的新產品的強勁表現。從長期模型的角度來看，我們正在按照財務分析師日所製定的目標前進，從 31% 增長到 34%，並且預計到 2018 年，得益於 2018 年新高端產品的強勁增長，這一比例將超過 36%。

And a follow-up, if I may, on the EPYC server side. Can you help us understand to what extent you're shipping to customers who are going through testing right now versus shipping into customers who are actually deploying EPYC in live data center applications?

如果可以的話，我對 EPYC 伺服器端進行了跟進。您能否幫助我們了解，您向正在接受測試的客戶發貨的程度，以及向實際在實時數據中心應用程式中部署 EPYC 的客戶發貨的程度？

Yes, absolutely, Mark. So look, we're pleased with how things are going with the EPYC ramp overall. So we have been shipping to both cloud as well as non-cloud customers in Q3, mostly early platform type testing. In Q4, we will -- we expect to see some level of deployment, again, both in cloud and non-cloud applications. With the new platforms coming in from HP Enterprise and Dell, what we're seeing is actually a ramp of new seeding opportunities, particularly in medium and large enterprise customers. So overall, the EPYC ramp is going well, and we expect more deployments as we go into Q4 and into next year.

是的，絕對是，馬克。所以，我們對 EPYC 整體進展感到滿意。因此，我們在第三季一直向雲端客戶和非雲端客戶發貨，主要是早期平台類型測試。在第四季度，我們預計將再次看到一定程度的部署，無論是在雲端還是非雲端應用程式中。隨著惠普企業和戴爾推出新平台，我們實際上看到的是大量新的播種機會，特別是對於中型和大型企業客戶而言。總體而言，EPYC 的成長進展順利，我們預計進入第四季和明年將有更多的部署。

Our next question is coming from Ambrish Srivastava from BMO.

下一個問題來自 BMO 的 Ambrish Srivastava。

This is Kulin Patel calling in for Ambrish. You highlighted in your PR that you had a GM headwind related to buying wafers at another foundry. Do you expect any meaningful external purchases in Q4 or going forward into 2018 that could be a headwind to gross margins?

我是庫林·帕特爾 (Kulin Patel)，代表安布里什 (Ambrish) 打電話來。您在公關中強調，您在另一家代工廠購買晶圓時遇到了通用汽車的阻力。您是否預計第四季或 2018 年將出現任何有意義的外部採購，這可能會對毛利率造成不利影響？

I think the way I look at that is, if you look at Q3 from a volume standpoint and the volume is pretty high, and that's why it's highlighted from a viewpoint of the cost, the way you want to look at it going forward, Q4 and beyond, is all of the costs are related with the WSA that's referenced in the script. So it's contemplated within our guidance and our long-term models.

我認為我的看法是，如果你從數量的角度來看待第三季度，而且數量相當高，這就是為什麼從成本的角度來強調這一點，那麼你對第四季度及以後的看法是，所有成本都與腳本中引用的 WSA 有關。因此，它在我們的指導和長期模型中被考慮。

And I had a question on -- you launched the Radeon Instinct MI25 [maybe] last quarter. Can you discuss the traction you're seeing in that product? Are you seeing any meaningful revenues in 3Q and in your 4Q outlook?

我有一個問題——你們上個季度推出了 Radeon Instinct MI25（可能）。您能談談該產品的吸引力嗎？您是否認為第三季和第四季的營收會有任何顯著成長？

Yes. So the Radeon Instinct MI25 is Vega for the cloud data centers. We did actually start shipping volume in Q3 to multiple customers. We do see very high interest in the product portfolio, and so we expect that to continue to ramp into Q4. And there's a lot of focus on increasing the software usability and software flexibility, and so we continue to invest in those areas. But overall, I'm actually very pleased with the interest in MI25, and it's coming from multiple customers in a number of markets.

是的。因此，Radeon Instinct MI25 是用於雲端資料中心的 Vega。我們確實在第三季開始向多個客戶出貨。我們確實看到人們對產品組合的興趣非常高，因此我們預計這種興趣將在第四季度繼續上升。我們非常注重提高軟體的可用性和軟體靈活性，因此我們將繼續在這些領域進行投資。但總的來說，我對 MI25 所受到的關注感到非常高興，而且這種關注來自多個市場的多個客戶。

Our next question is coming from Joe Moore from Morgan Stanley.

我們的下一個問題來自摩根士丹利的喬·摩爾。

I was interested in your comments that the sequential growth in the Computing and Graphics business was driven primarily by graphics. How literally should we take that? And I guess, if graphics is up close to $150 million sequentially, is that business now on par with the CPU business? Can you just give us a general sense of the size of the 2 businesses there?

我對您的評論很感興趣，即計算和圖形業務的連續增長主要由圖形驅動。我們該如何從字面上理解這一點呢？我想，如果圖形業務連續成長接近 1.5 億美元，那麼該業務現在是否與 CPU 業務持平？能否大致介紹一下這兩家企業的規模？

Yes. So overall, the growth in Computing and Graphics, when you look over the past few quarters, has been very strong. And we've seen growth both on the Ryzen side, particularly in the desktop side of the business, as well as on the graphics side. So in terms of size of the business, again, I think we stated in the prepared remarks that the GPU business had a record quarter for us, and we're seeing very strong growth. We're seeing strong growth as a result of the new product launches. So the Vega product actually did very well for us in the quarter as well as overall Polaris in both gaming and blockchain markets. But yes, we're pleased with the graphics performance. But I'll also say, Ryzen did very well in the quarter. We look at the progress that we're making in the desktop channel when you look across retailers and e-tailers across the world and in the sort of Ryzen 5 and Ryzen 7 segment, we're seeing significant share gain in those parts of the business. So I think both parts of the Computing and Graphics business are doing well, and we continue to expect growth as we go forward.

是的。總體而言，回顧過去幾個季度，計算和圖形領域的成長非常強勁。我們看到 Ryzen 方面的成長，特別是在桌面業務方面，以及圖形方面。因此，就業務規模而言，我認為我們在準備好的評論中再次提到，GPU 業務對我們來說是一個創紀錄的季度，我們看到了非常強勁的成長。由於新產品的推出，我們看到了強勁的成長。因此，Vega 產品在本季度實際上表現非常出色，並且 Polaris 在遊戲和區塊鏈市場的整體表現也非常好。但是，是的，我們對圖形性能感到滿意。但我還要說的是，Ryzen 在本季表現非常出色。當您縱觀全球零售商和電子零售商以及 Ryzen 5 和 Ryzen 7 領域時，我們會看到我們在桌面管道所取得的進展，我們看到這些業務領域的份額顯著增長。因此，我認為計算和圖形業務的兩個部分都表現良好，我們預計未來將繼續成長。

And is it possible to size the blockchain portion of that?

是否可以確定區塊鏈部分的大小？

I think the blockchain tends to be -- again, it's hard to separate because it goes through some of the same channels as gaming does. I will say that blockchain sort of behaved as we expected in Q3, so we didn't see anything that we didn't expect. We did see some benefit of channel restocking, so if you look at the -- our channel inventories today compared to July, we have healthier channel inventory levels. And we expect that consumer blockchain will level off a bit as we go into Q4, but there's also a commercial blockchain component that we believe is interesting and likely to continue into the medium term. As we look into Q4 though, we also see growth from just the OEM side of the GPU business as we start ramping Vega into OEMs.

我認為區塊鏈往往是——再次強調，它很難分離，因為它與遊戲經歷了一些相同的管道。我想說的是，區塊鏈在第三季的表現正如我們預期的那樣，所以我們沒有看到任何意料之外的事情。我們確實看到了渠道補貨的一些好處，所以如果你看一下——與 7 月份相比，我們今天的渠道庫存，我們的渠道庫存水平更加健康。我們預計，進入第四季度，消費者區塊鏈將會趨於平穩，但我們認為商業區塊鏈組件也很有趣，並且可能會持續到中期。然而，當我們展望第四季時，我們也看到 GPU 業務的 OEM 方面也出現了成長，因為我們開始將 Vega 推向 OEM。

Next question is coming from John Pitzer from Crédit Suisse.

下一個問題來自瑞士信貸的約翰‧皮策 (John Pitzer)。

Lisa, apologize, I'm kind of juggling a couple calls like everyone else. I apologize if this is a repeat. But I'm just wondering, just given the qualitative success of Ryzen and the accretive ASPs and gross margins, I'm wondering if you could just help us understand, on a more quantitative basis, how much of your PC unit business is now Ryzen. And I guess, more importantly, how do we think about that progressing over the next several quarters? And kind of where's the tipping point where you think we'll start to see some significant leverage relative to the accretive ASPs and the accretive gross margins?

麗莎，抱歉，我和其他人一樣，同時接聽幾通電話。如果這是重複的話，我深感抱歉。但我只是想知道，鑑於 Ryzen 的品質成功以及不斷增長的 ASP 和毛利率，我想知道您是否可以幫助我們從更定量的角度了解您的 PC 部門業務中有多少是 Ryzen。我想，更重要的是，我們如何看待未來幾季的進展？您認為，相對於增值 ASP 和增值毛利率，我們將開始看到一些顯著的槓桿作用的臨界點在哪裡？

Yes, absolutely, John. So look, we are really pleased with how Ryzen is performing competitively and -- in the market. It's fair to say, though, that we're still at the early stages of the Ryzen ramp, so primarily in Q2 and Q3, Ryzen has been a desktop channel phenomenon. So most of the sales have been in the desktop channel. We have started ramping OEMs in the desktop space, and we will continue ramping OEMs as we go into Q4. But it's nowhere near the majority of the client revenue. You should expect that Ryzen will continue to ramp for us through the first half of next year because we're adding more and more platforms as we speak, both on the consumer and also on the commercial front. And -- so we see -- again, it's ramping well. The ASPs are good, so actually, we saw some ASP increase in Ryzen as we went from Q2 to Q3, and we launched the high-end desktop version as well as Ryzen 3. And we'll continue to ramp into Q4 and first half of next year.

是的，絕對是，約翰。所以，我們對 Ryzen 在市場上的競爭表現感到非常滿意。不過，公平地說，我們仍處於 Ryzen 發展的早期階段，因此主要在第二季和第三季度，Ryzen 已成為一種桌面通路現象。因此大部分銷售都來自桌面通路。我們已經開始在桌面領域擴大 OEM 規模，並且在進入第四季度後我們將繼續擴大 OEM 規模。但這遠遠達不到客戶收入的大部分。您應該可以預料到，Ryzen 將在明年上半年繼續為我們帶來成長，因為我們正在增加越來越多的平台，包括消費者平台和商業平台。而且 — — 我們看到 — — 它再次表現良好。平均售價不錯，實際上，我們看到 Ryzen 的平均售價從第二季到第三季有所上漲，並且我們推出了高階桌面版以及 Ryzen 3。我們將繼續在第四季和明年上半年加大力度。

And then, Lisa, just as my follow-on, kind of a similar question around EPYC, and just I know you guys have kind of talked about potentially exiting the end of next year at about a 2% share. I'm just kind of curious how you think about the ramp of EPYC. And if you can differentiate between sort of your Hyperscale customers who might take it a little bit sooner versus more the -- the more traditional OEM channel, how should we be thinking about that on EPYC?

然後，麗莎，就像我的後續問題一樣，關於 EPYC 有一個類似的問題，我知道你們已經談到了明年年底可能以 2% 左右的份額退出市場。我只是有點好奇你對 EPYC 的成長有何看法。如果您可以區分那些可能更快採用它的超大規模客戶和更傳統的 OEM 通路客戶，那麼我們應該如何考慮 EPYC 呢？

Yes. So John, I'm not sure we ever said 2% by the end of next year, but what I would say is that we expect EPYC to be a sizable portion of our revenue in 2018. So the second half of this year, we're doing early pilots and we're doing some early deployments. The Hyperscale guys are aggressive, and they are first. We will start seeing some enterprise revenue here in Q4 as the early platforms launch, but I expect more of the enterprise to fill in as we go into 2018. And I think the important point is, as we look at the product, as we look at the competition and where we're positioned, the product positioning is strong, and so the customer engagements are growing. And we're seeing significant interest from enterprise customers ramp now as some of the OEM platforms are becoming available and starting their seeding. So overall, EPYC will continue to ramp into 2018 and should be a sizable -- we expect it to be a sizable portion of our revenue in 2018.

是的。所以約翰，我不確定我們是否說過到明年年底會達到 2%，但我想說的是，我們預計 EPYC 將占到我們 2018 年收入的相當大一部分。因此，今年下半年，我們正在進行早期試點並進行一些早期部署。超大規模企業非常積極，他們是第一家。隨著早期平台的推出，我們將在第四季度開始看到一些企業收入，但我預計隨著進入 2018 年，將有更多的企業收入填補這一空缺。我認為重要的一點是，當我們審視產品、審視競爭和我們的定位時，產品定位很強大，因此客戶參與度也在成長。隨著一些 OEM 平台的推出和開始播種，我們看到企業客戶的興趣正在濃厚增長。因此總體而言，EPYC 將在 2018 年繼續成長，並且應該會佔據相當大的份額——我們預計它將成為我們 2018 年收入中相當大的一部分。

Our next question today is coming from Ross Seymore from Deutsche Bank.

我們今天的下一個問題來自德意志銀行的羅斯·西摩。

I want to go back to the mix of the business and specifically in the Computing and Graphics segment. The client ASPs were down sequentially, and you highlighted that being because of mobile. Somewhat similar to John's question, Lisa, when do you expect to see the ASPs in that segment of your business start to turn to be a positive driver as opposed to a bit of a headwind?

我想回顧一下業務組合，特別是計算和圖形領域。客戶端 ASP 持續下降，您強調這是因為行動端。麗莎，這個問題與約翰的問題有些類似，您預期什麼時候您業務領域的平均銷售價格會開始成為積極的推動力，而不是阻力？

Yes. So definitely, desktop ASPs are up. Mobile ASPs are down. I think we will see -- again, there will be an initial ramp of Ryzen Mobile in Q4, but I think in the first half of the year, you should see a significant amount of the volume that we ship into notebook be with Ryzen Mobile. So when I look at sort of the rate and pace of the ramp, I think it's going as we expect with desktop channel first, then desktop OEMs and then commercial desktop and then, same, consumer notebook starting in Q4, ramping into Q1, and then we'll see commercial platforms in the first half of '18 as well. So I think there should be a steady ramp of ASPs as we go forward. We're also taking some opportunity, as you can imagine, to clean up some excess inventory as we transition to the new product, and so that's part of what we're doing to just ensure that we have a strong launch as we go into the new product portfolio. But overall, behaving as we expected and in some sense, we're very pleased with how we're positioned competitively with the product.

是的。因此，桌上型 ASP 肯定在上漲。移動平均售價下降。我認為我們會看到——Ryzen Mobile 將在第四季度首次推出，但我認為在今年上半年，你應該會看到我們出貨的筆記型電腦中很大一部分是 Ryzen Mobile。因此，當我觀察成長的速度和步伐時，我認為它會按照我們的預期進行，首先是桌上型電腦管道，然後是桌上型電腦 OEM，然後是商用桌上型電腦，然後是消費性筆記型電腦，從第四季度開始，進入第一季度，然後我們還會在 2018 年上半年看到商用平台。因此我認為隨著我們不斷前進，ASP 應該會穩定上升。正如您所想像的，在過渡到新產品的過程中，我們也在利用一些機會清理一些多餘的庫存，因此，這是我們所做工作的一部分，以確保我們在進入新產品組合時能夠強勁推出。但總體而言，我們的表現正如預期的那樣，從某種意義上說，我們對我們的產品競爭定位感到非常滿意。

And I guess, as my follow-up, switching to one for Devinder on the OpEx side of things. OpEx was a little bit higher in the third quarter. It's dropping sequentially into the fourth quarter. You've talked in the past about a 31% OpEx to revenue guide range for this year. You're probably not going to guide for '18 by that much -- with that much precision tonight. But is there any sort of puts and takes we can think of as far as how you guys are considering your investment philosophy as we move into 2018?

我想，作為我的後續行動，在 OpEx 方面為 Devinder 換一個。第三季的營運支出略高。進入第四季度，這一數字持續下降。您過去曾談到今年的營運支出佔收入指引範圍為 31%。今晚你可能不會對 18 年做出如此精確的指導。但是，隨著我們進入 2018 年，我們能否就你們的投資理念考慮一些利弊呢？

No. I think the first thing I'll say is we do want to invest in the business, especially with the growth of opportunities we have and primarily targeting the OpEx investments towards R&D. They are -- in the current moment, there's a lot of products ramping just in the last few months. You heard about the Ryzen ramp. You heard about EPYC. We talk about Vega, and obviously, their go-to-market costs will ramp up new products. But as far as our 2017 guidance is concerned, I have said previously 31% has potential of revenue, but I think right now where the numbers are coming out, especially with the strength of the revenue side of the equation, we think we end up at about 30% on an expense-to-revenue ratio in 2017, of which you -- as you probably recall, is at the upper end of what we are setting of a long-term target model, which is 26% to 30%. So actually, I'm pretty pleased because, if all else, if everything works out in the Q4 guidance that we gave and in 2016 would have been a 32% of revenue, in 2017, approximately 30%, and then obviously, we'll see where we get into 2018 but very pleased from a viewpoint of being able to make the investments in the business to support the product road map, the go-to-market cost for the ramp of new products and at the same time, bring down the percentage of OpEx over revenue.

不。我想首先要說的是，我們確實想投資這項業務，特別是隨著我們擁有的機會的成長，並且主要針對研發方面的營運支出投資。目前，有許多產品在過去幾個月內迅速上市。您聽說過有關 Ryzen 升級的消息。您聽過 EPYC。我們談論 Vega，顯然，他們的上市成本將會增加新產品的推出。但就我們 2017 年的指導而言，我之前曾說過 31% 具有收入潛力，但我認為現在的數字，特別是考慮到等式中收入方面的強度，我們認為 2017 年的費用收入比最終會達到 30% 左右，其中 — — 您可能還記得，處於我們設定的長期目標模型的上限，即 26% 到 30%。所以實際上，我很高興，因為如果一切順利，如果我們給出的第四季度指導中的一切都順利的話，2016 年的收入將達到 32%，2017 年將達到約 30%，然後顯然，我們將看看 2018 年的情況，但從能夠對業務進行投資以支持產品路線圖、新產品上市成本的百分比，我很高興的營運成本。

Our next question is coming from Matt Ramsay from Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 Matt Ramsay。

Lisa, I wanted to ask a little bit about the forward road map, particularly in the processor group. I know that you guys have talked quite a bit about taking the road map down to 7-nanometer next year, and I think Mark gave some public comments about doing some stuff on 12-nanometer with GF. So I think it'd be helpful if you could talk to the extent that you can about some of the feature road map and things that might be follow-on to the products that are ramping currently.

麗莎，我想問未來的路線圖，特別是處理器組的路線圖。我知道你們已經談論了很多關於明年將路線圖降至 7 奈米的事情，而且我認為馬克也公開評論過使用 GF 在 12 奈米上進行一些工作。因此，我認為如果您能盡可能多地談論一些功能路線圖以及可能跟進當前正在開發的產品的事情，將會很有幫助。

Yes, absolutely, Matt. So 7-nanometer, we've talked about, is a very important node for us, and it's an important node for the industry. It's a major node, so we have a lot of engineering resources on that. And you should expect that, that will be across all of our businesses, and we're actively working on those products now. We do see an opportunity with 12-nanometer. 12-nanometer is a relatively small engineering lift, and I would view it as a performance enhancement to our current road map. And so we are working, taking some of our products -- I would say, a subset of our products into 12-nanometer in 2018 to augment the performance of our client and graphics road map. But I think the significant resources are on 7, and that's progressing well. We're overall pleased with how the performance on that is looking, and then we will opportunistically look at some products to go into 12-nanometer as it makes sense for the road map.

是的，絕對是，馬特。我們所討論的 7 奈米對我們來說是一個非常重要的節點，對整個產業來說也是一個重要的節點。這是一個重要節點，因此我們在這方面投入了大量的工程資源。您應該預料到，這將涵蓋我們所有的業務，我們現在正在積極開發這些產品。我們確實看到了 12 奈米的機會。12 奈米是一個相對較小的工程提升，我認為它是對我們目前路線圖的性能增強。因此，我們正在努力將我們的部分產品（我想說，我們的部分產品）在 2018 年引入 12 奈米工藝，以增強我們客戶端和圖形路線圖的性能。但我認為重要的資源都在 7 上，而且進展順利。我們總體上對目前的表現感到滿意，然後我們會抓住機會考慮將一些產品引入 12 奈米工藝，因為這對路線圖來說是有意義的。

And Devinder, I wanted to press a little bit harder on the gross margin impacts of a few things that you called out, particularly -- I mean, is there any way that you can quantify for us at all the impact of the IP revenue on gross margins either in the third quarter or comparatively into Q4? And second, I think a lot of us are aware of the forward charges you'll get for using wafers from other foundries, but I assume that, that applies also to the gaming console business that comes out of TSMC currently. If you could clarify those 2 things, that'd be great.

德文德，我想進一步強調您提到的幾個因素對毛利率的影響，特別是——您能否為我們量化 IP 收入對第三季或第四季毛利率的影響？其次，我想很多人都知道使用其他代工廠的晶圓會產生預付費用，但我認為這也適用於台積電目前推出的遊戲機業務。如果您能澄清這兩件事，那就太好了。

Yes. I think if you look at it from an overall standpoint, if you look at the cost impact, it's all within our guidance. I think if you look at IP from that standpoint, we have several IP deals in the pipeline. For Q3 specifically, we thought it was likely that we would be able to close an IP-related deal in the quarter, and that's how it turned out. And you see the benefit across both the segments. And from a go-forward standpoint, despite the costs being there, we look at it overall from a viewpoint of the trend of the margin. Major provider of the gross margin uplift is the premium new products that we are launching. And then, obviously, there's opportunities from an IP standpoint to benefit the P&L, we go ahead and put that in the equation.

是的。我認為，如果從整體角度來看，如果看一下成本影響，這一切都在我們的指導範圍內。我認為，如果從這個角度來看 IP，我們正在籌備幾項 IP 交易。具體來說，對於第三季度，我們認為我們很有可能在本季完成一項與智慧財產權相關的交易，事實也確實如此。您可以看到這兩個部分都受益。從未來的角度來看，儘管存在成本，但我們會從利潤趨勢的角度來看待它。毛利率提升的主要動力是我們推出的優質新產品。然後，顯然，從智慧財產權的角度來看，有機會使損益表受益，我們繼續將其納入等式中。

Our next question is coming from Blayne Curtis from Barclays.

下一個問題來自巴克萊銀行的布萊恩‧柯蒂斯。

I just want to better understand the December guidance a bit, maybe if you can talk about it between the 2 segments. The Embedded business last year was down 40%. It's been tracking down slightly year-over-year. So is that the right way to think about that segment this December? And then maybe you can talk about on the graphics side. I just want to understand the commentary. You said that crypto or blockchain was kind of flattening out and that you were kind of getting some restocking. Just to kind of understand, when you look at growth in that segment, what are the moving pieces?

我只是想更好地了解 12 月的指導意見，也許您可以在兩個部分之間談論它。去年嵌入式業務下降了 40%。與去年同期相比，這一數字略有下降。那麼這是思考今年 12 月該部分的正確方式嗎？然後也許您可以談論圖形方面。我只是想了解一下評論。您說加密貨幣或區塊鏈正在趨於平穩，並且您正在進行一些補貨。只是想了解一下，當您觀察該領域的成長時，有哪些因素在起作用？

Yes. So Blayne, let me answer that question. So overall, I think our business does have the seasonal pattern where the Q3 is a peak, and we're down in Q4 primarily due to the semi-custom business. I believe those dynamics are the same. I've -- we've looked at sort of how the business will perform on a year-over-year basis. We believe that semi-custom revenue will be down a little bit on a year-over-year basis, and that's expected. We're in the fifth year of the cycle, and you would expect that units to be down, although we have some positive mix because of the new launch of the Microsoft Xbox One X console, which is a higher ASP product for us. When you look at the graphics business, again, overall, we see the business as quite strong. We see Vega ramping as we go into Q4. We see that from an OEM ramp standpoint. We see that from a GPU compute standpoint, and that's offset with a little bit of leveling off of the blockchain demand. But overall, I think we see sort of Computing and Graphics continuing to grow as we go into Q4.

是的。那麼布萊恩，就讓我來回答這個問題。所以總的來說，我認為我們的業務確實具有季節性模式，其中第三季是高峰，而第四季則下降，主要是由於半客製化業務。我相信這些動力是相同的。我已經——我們已經研究了業務的同比表現。我們認為半客製化收入年比會略有下降，這是預料之中的。我們正處於這個週期的第五年，你可以預料到銷量會下降，儘管由於新推出的微軟 Xbox One X 遊戲機（對我們來說是一款平均售價更高的產品）我們有一些積極的組合。當您再次審視圖形業務時，總體而言，我們認為該業務相當強勁。隨著進入第四季度，我們看到 Vega 正在蓬勃發展。我們從 OEM 坡道角度看到了這一點。我們從 GPU 運算的角度來看，這與區塊鏈需求的稍微平穩相抵消。但總體而言，我認為隨著進入第四季度，我們會看到計算和圖形業務繼續成長。

And then just maybe a second question following up on some of the questions on process node. You had high reuse with the server product this time. When you see -- how do you think about the R&D cost in terms of if you were doing a core at TSMC versus doing one at GLOFO, a dual track? As you look into '18, how should you think about the OpEx required to do that?

然後也許還有第二個問題，跟進有關流程節點的一些問題。這次您對伺服器產品的重複使用率很高。當您看到—如果您在台積電 (TSMC) 做一個核心，與在 GLOFO 做一個核心（雙軌制）相比，您如何看待研發成本？當您展望 18 年時，您應該如何考慮實現這一目標所需的營運支出？

Yes. So it's part of our engineering model. So we've -- we sort of engineered a model where we can use our IP at multiple foundries, and that will continue as we go into 7-nanometer. So if you look at this year, we have multiple products in 16-nanometer and 14-nanometer. As we go into 2018 and beyond, it's the same thing. So there are no additional costs related to our dual-sourcing strategy. I think from an overall R&D standpoint, as Devinder said, we will look to ramp our spending in line with revenue, and primarily, it's around continuing to invest in our new market opportunities, continuing to invest on the GPU side and what we're doing in the compute markets, continuing to strengthen our sales and marketing as we go to market with these broad new products. But it's -- there's no particular OpEx impact of using multiple foundries.

是的。所以這是我們工程模型的一部分。因此，我們設計了一種模型，可以在多個代工廠使用我們的 IP，並且這種模式在我們進入 7 奈米時仍將繼續。所以如果你看看今年，我們會發現我們有多個 16 奈米和 14 奈米的產品。當我們進入 2018 年及以後時，情況仍然是一樣的。因此，我們的雙重採購策略不會產生任何額外成本。我認為從整體研發的角度來看，正如 Devinder 所說，我們將尋求根據收入增加支出，主要是繼續投資於我們的新市場機會，繼續投資於 GPU 方面以及我們在計算市場所做的工作，繼續加強我們的銷售和營銷，因為我們將這些廣泛的新產品推向市場。但使用多個代工廠不會對營運支出產生特別的影響。

Our next question today is coming from Hans Mosesmann from Rosenblatt Security.

我們今天的下一個問題來自 Rosenblatt Security 的 Hans Mosesmann。

Lisa, can you give us, in terms of timing, 7-nanometer for next year? And what products would be the focus initially for that node?

Lisa，您能告訴我們明年 7 奈米的具體時間嗎？該節點最初的重點是什麼產品？

Sure, Hans. So I'm not going to comment directly on timing of products because, obviously, there's a lot of R&D yet to be done. But I would say that our product portfolio, in general, will take advantage of 7-nanometer. You should expect our server portfolio, our graphics portfolio and our client portfolio to all take advantage of 7-nanometer at some point in time. And we like the performance as well as the power and the density strength that we get from it. And so again, we think it'll really help to improve our competitive positioning as we look forward.

當然，漢斯。因此我不會直接評論產品的時間，因為顯然還有很多研發工作要做。但我想說的是，我們的產品組合總體上將利用 7 奈米的優勢。您應該期待我們的伺服器產品組合、圖形產品組合和客戶端產品組合在某個時間點全部利用 7 奈米。我們喜歡它的性能以及它所具有的功率和密度強度。因此，我們再次認為，展望未來，這將真正有助於提高我們的競爭地位。

All right. And then as a follow-up, if you can answer this, and maybe it was already answered, so forgive me. The -- on the IP front in Q3, did you indicate what end market or what type of application or what geographic location the IP relationship is all about?

好的。然後作為後續問題，如果你可以回答這個問題，也許它已經被回答了，那麼請原諒我。在第三季的 IP 方面，您是否指出了 IP 關係涉及哪個終端市場、哪種類型的應用或哪個地理位置？

Yes. So we did say that the IP transaction was a patent licensing-related transaction, so that's different from the technology licensing, for example, that we did with THATIC. This was a straight patent licensing. And the great thing about our patent portfolio is, beyond sort of our core markets, it's -- it has applicability across a broad range of markets, and so this was a patent transaction and not a technology licensing transaction.

是的。所以我們確實說過，IP 交易是與專利授權相關的交易，所以這與我們與 THATIC 進行的技術授權不同。這是直接的專利許可。我們的專利組合的優點在於，除了我們的核心市場之外，它還適用於廣泛的市場，因此這是一項專利交易，而不是技術授權交易。

Our next question today is coming from Vijay Rakesh from Mizuho.

我們今天的下一個問題來自瑞穗的 Vijay Rakesh。

So I was just wondering on the data center side, when you look at -- you mentioned EPYC was strong. I was wondering if your breakout [comments] (inaudible) EPYC and what -- how it grew sequentially. And (inaudible) [have you seen it going] into the December quarter at all?

所以我只是想知道在資料中心方面，當你看到——你提到 EPYC 很強大。我想知道您的突破性[評論]（聽不清楚）EPYC 以及它是如何連續成長的。而且（聽不清楚）[您是否預見了] 12 月季度的情況？

Okay, yes. You broke up a little bit there, Vijay. But I think I got the question. So the question was sort of the strength of EPYC and where do we see it -- how do -- where do we see it going in Q4. Look, I think EPYC had a good quarter. Obviously, it's growing off of a small base since we had a small base for the server revenue, but we certainly saw growth in unit shipments and revenue into Q3. We will see more growth or we expect to see more growth into Q4, especially as some of these trial runs turn into more deployment activity. And as more OEMs ramp our platforms, the platforms will be more available in the industry, and we're seeing growing interest from a number of enterprise customers as well. So -- but we should think about EPYC as a long-term growth driver. So yes, we will see growth into Q4, but it will be a sizable portion of our revenue as we go into 2018.

好的，是的。你有點崩潰了，維傑。但我想我明白了這個問題。所以問題在於 EPYC 的優勢以及我們如何看待它 - 如何 - 我們如何看待它在第四季度的發展。看起來，我認為 EPYC 本季表現不錯。顯然，由於我們的伺服器收入基數較小，所以成長基數較小，但我們確實看到第三季的出貨量和收入有所增長。我們將看到更多的成長，或者我們預計在第四季度會看到更多的成長，特別是當其中一些試運行轉變為更多的部署活動時。隨著越來越多的 OEM 廠商採用我們的平台，該平台在業界的普及度將更高，我們也看到越來越多的企業客戶對我們平台的興趣。所以——但我們應該將 EPYC 視為長期成長動力。所以是的，我們將在第四季度看到成長，但進入 2018 年，這將成為我們收入的相當大一部分。

Got it. (inaudible) and then you start breaking out that enterprise [data center] out of the semi-custom like your peers are doing as you grow that market? Lastly, just wondering how channel inventory in graphics side GPUs are.

知道了。（聽不清楚）然後，隨著市場的發展，您是否像同行一樣，開始將企業 [資料中心] 從半客製化中分離出來？最後，只是想知道圖形端 GPU 的通路庫存如何。

I think the question was whether we would begin breaking out enterprise separately as a segment, and I don't know that we've made any decision to do that. And then second question was very hard to hear, Vijay. We'll ask you to repeat it, please.

我認為問題在於我們是否會將企業單獨拆分成一個部門，但我不知道我們是否已經做出這樣的決定。第二個問題很難聽清，維傑。請您再說一次。

Yes. Just channel inventory in GPUs. How do you see channel inventory on the GPU side?

是的。只需在 GPU 中引導庫存。您如何看待GPU端的通路庫存？

Yes. Okay, so for your first question, I think, as Laura said, we haven't made any determinations about a different segment reporting. But we will give you markers on how the business is growing, and I think it will be clear just given the accretive nature of EPYC. As we start ramping that product, you'll see more impact of the product-related revenue. The second question is as it relates to channel inventory in graphics. I believe that channel inventory is healthier in graphics here in October than it was in July. We've certainly restocked some of the channel both for Polaris as well as the Vega products. I would still say that channel inventory might be a little bit light. It's not fully restocked yet, but it's certainly healthier than it was in the July time frame.

是的。好的，對於您的第一個問題，我認為，正如勞拉所說，我們還沒有對不同的分部報告做出任何決定。但我們將為您提供業務如何成長的標記，我認為，考慮到 EPYC 的增值性質，這將非常清晰。隨著我們開始增加該產品的產量，您將看到與產品相關的收入的更多影響。第二個問題與圖形中的渠道庫存有關。我認為，十月的通路庫存圖形比七月更健康。我們確實為 Polaris 和 Vega 產品補充了一些通路的庫存。我仍然認為渠道庫存可能有點少。雖然還沒有完全補貨，但肯定比七月的時候要健康一些。

Our next question is coming from Chris Danely from Citigroup.

下一個問題來自花旗集團的 Chris Danely。

This is Wayne Loeb for Chris Danely. Can I ask you how you feel you did share wise in CPU and GPU in Q3?

我是韋恩·勒布，為克里斯·丹尼利 (Chris Danely) 主持節目。我可以問一下您覺得您在第三季的 CPU 和 GPU 份額如何嗎？

Yes. So we will have to wait until, obviously, the share results come in. I think when we look at the CPU side of the business, we feel really good about how Ryzen is doing in the desktop channel, so we think we definitely made progress there. As you look, overall, we have to see how the overall results come in. And on the GPU side, again, we shipped a significant volume. It was a record quarter for us, and we saw strength across our new products as well as our current products, and we saw significant ASP growth, which is important for us. But again, I would wait until the overall results come out in a few weeks.

是的。因此，我們必須等到股票結果出來。我認為，當我們審視 CPU 業務時，我們對 Ryzen 在桌面頻道的表現感到非常滿意，因此我們認為我們在那裡肯定取得了進展。整體來看，我們必須看看整體結果如何。在 GPU 方面，我們再次出貨了大量產品。對我們來說這是一個創紀錄的季度，我們的新產品和現有產品均表現強勁，平均售價也顯著成長，這對我們來說非常重要。但我還是會等到幾週後整體結果出來。

Could you also give your view on the overall PC industry? Was it better, worse, the same as expected?

您能否也談談對整個 PC 產業的看法？是否比預期更好、更差，還是一樣？

I think that's a good question. I think the overall PC industry is about what we expected, maybe a tad bit better, but I would say about what we expected. We see good geographical -- sort of the geographies are doing well, particularly North America and Europe. There's a little bit of softness in China, particularly at the low end of the market, and I think there's some change in dynamics in China. But overall, I think the PC market was about what is expected, and that's a good thing.

我認為這是個好問題。我認為整個 PC 行業的情況與我們預期的差不多，可能稍微好一點，但我想說的是，情況基本上符合我們的預期。我們看到良好的地理位置—某些地理位置表現良好，特別是北美和歐洲。中國市場有些疲軟，尤其是低端市場，我認為中國的市場動態發生了一些變化。但整體而言，我認為 PC 市場的表現符合預期，這是一件好事。

Our final question today is coming from Tristan Gerra from Baird.

我們今天的最後一個問題來自貝爾德的特里斯坦·傑拉 (Tristan Gerra)。

You've announced some design wins for EPYC. Have you seen the number of design wins increase in the quarter? And is what you have enough to reach that longer-term target of 10% market share? Or do you need to line up more design wins to get there?

您已經宣布了 EPYC 的一些設計成果。您是否發現本季的設計獲勝數量有所增加？你所擁有的足以達到 10% 市佔率的長期目標嗎？或者你需要爭取更多的設計勝利才能實現這個目標？

Yes. That's a very good question. So we have seen design wins and customer engagements increase in the quarter. We've seen customers who started with one platform now looking at multiple platforms with EPYC. And then in terms of design win coverage, we believe we have design win and platform coverage to meet or exceed our share goal targets. So it's not a design win statement. It's really a conversion of design wins to revenue as we help our customers ramp in the coming quarters. So very happy with the customer progress, very happy with the number of platforms that we have, and we continue to expand those platforms and the customer base over time.

是的。這是一個非常好的問題。因此，我們看到本季的設計勝利和客戶參與度增加。我們看到，最初使用一個平台的客戶現在正在考慮使用 EPYC 的多個平台。就設計勝利覆蓋率而言，我們相信我們的設計勝利和平台覆蓋率能夠達到或超過我們的份額目標。所以這不是一個設計勝利的聲明。這實際上是將設計勝利轉化為收入，因為我們可以幫助客戶在未來幾季內成長。我對客戶的進步感到非常高興，對我們擁有的平台數量感到非常高興，並且我們會隨著時間的推移繼續擴大這些平台和客戶群。

Okay. And then my quick follow-up will be, how do you see the opportunities of fitting EPYC and Vega in notably in enterprise platforms? Is that a fitting factor? Do customers value this as a system solution versus just one architecture?

好的。然後我的快速跟進是，您如何看待 EPYC 和 Vega 在企業平台上的應用機會？這是一個合適的因素嗎？客戶是否認為這是一個系統解決方案，而不是單一的架構？

Yes, we have seen good interest from both OEMs as well as end customers on looking at EPYC and our MI25 product together. We actually have a working machine, the P47 petaflop machine that we announced at SIGGRAPH, and we have actually a number of customers using that to trial their software and their application. And so yes, I do think it's a selling point. I do believe that customers do want some integrated system solutions. But as we always say, the products operate very well standalone, and they work with other products as well. But we will continue to work on those system-level solutions for customers.

是的，我們看到 OEM 和最終客戶都對 EPYC 和我們的 MI25 產品表現出濃厚的興趣。我們實際上有一台可以運行的機器，也就是我們在 SIGGRAPH 上發布的 P47 petaflop 機器，我們實際上有許多客戶使用它來試用他們的軟體和應用程式。是的，我確實認為這是一個賣點。我確實相信客戶確實想要一些整合的系統解決方案。但正如我們常說的那樣，這些產品獨立運作效果非常好，而且也可以與其他產品協同工作。但我們將繼續致力於為客戶開發這些系統級解決方案。

We've reached the end of our question-and-answer session. I'd like to turn the floor back over to management for any further or closing comments.

我們的問答環節已經結束。我想將發言權交還給管理階層，請他們發表進一步的評論或結束評論。

Thank you. Thank you, operator, and thank you, ladies and gentlemen, everyone, for joining us today. We appreciate you joining our call. We're proud of these results and appreciate your support of AMD.

謝謝。謝謝接線生，也謝謝女士們、先生們，大家今天的參與。感謝您加入我們的電話會議。我們對這些成果感到自豪，並感謝您對 AMD 的支持。

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

謝謝。今天的電話會議到此結束。此時您可以斷開線路，祝您有美好的一天。我們感謝您今天的參與。