超微半導體 (AMD) 2018 Q3 法說會逐字稿

Greetings, and welcome to the AMD Third Quarter 2018 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 AMD 2018 年第三季財務業績電話會議。（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to turn the call over to Laura Graves. Please go ahead, Laura.

現在我很高興將電話轉給勞拉·格雷夫斯。請繼續，勞拉。

Thank you, and, yes, welcome to AMD's Third Quarter 2018 Conference Call. By now, you should have had an opportunity to review a copy of our earnings release and slides. If you have not reviewed these documents, they can be found on the Investor Relations page of AMD's website, www.amd.com.

謝謝，歡迎參加 AMD 2018 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和投影片的副本了。如果您尚未查看這些文件，可以在 AMD 網站 www.amd.com 的投資者關係頁面上找到。

Participants on today's conference call are: Dr. Lisa Su, our 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 our website.

今天電話會議的參與者有：我們的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。這是一場現場通話，將透過我們網站上的網路直播重播。

I would like to highlight some important dates for you. AMD's next Horizon event is scheduled for Tuesday, November 6, 2018, where we will discuss innovation of AMD's products and technology specifically designed for the data center on industry-leading 7-nanometer process technology. Dr. Lisa Su, President and Chief Executive Officer will present at the Crédit Suisse 22nd Annual Technology, Media and Teleconference on Tuesday, November 27; and our 2018 fourth quarter quiet time will begin at the close of business on Friday, December 14.

我想向你們強調一些重要的日期。AMD 的下一次 Horizo​​n 活動定於 2018 年 11 月 6 日星期二舉行，屆時我們將討論 AMD 在業界領先的 7 奈米製程技術上專為資料中心設計的產品和技術的創新。總裁兼執行長蘇姿豐博士將於 11 月 27 日星期二出席瑞士信貸第 22 屆年度技術、媒體和電話會議；我們的 2018 年第四季度靜默期將於 12 月 14 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。

We will refer primarily to non-GAAP financial measures during this call except for revenue, gross margin and segment operational results, which are on a GAAP basis. The non-GAAP financial measures referenced today are reconciled to their most directly comparable GAAP financial measure in today's press release posted on our website. Please refer to the cautionary statements in our press release for more information. You will 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 June 30, 2018.

本次電話會議中，我們將主要參考非 GAAP 財務指標，但收入、毛利率和分部營運績效除外，這些指標是基於 GAAP 的。今天引用的非 GAAP 財務指標與我們網站上今天發布的新聞稿中最直接可比較的 GAAP 財務指標進行了協調。請參閱我們新聞稿中的警告聲明以了解更多資訊。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 2018 年 6 月 30 日的 10-Q 表季度報告。

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

現在，我將把電話交給麗莎。麗莎？

Thank you, Laura, and good afternoon to all those listening in today. We executed well on the third quarter. We continued to build momentum for our new products as strong sales of our Ryzen and EPYC processors offset soft GPU channel sales and drove our fifth consecutive quarter of year-on-year revenue growth, increased profitability and margin expansion. Third quarter revenue was $1.65 billion, an increase of 4% from a year ago.

謝謝你，蘿拉，祝今天收聽節目的各位下午好。我們在第三季表現良好。我們繼續為新產品累積動力，因為 Ryzen 和 EPYC 處理器的強勁銷售抵消了軟 GPU 通路銷售，並推動我們連續第五個季度實現同比增長、盈利能力增強和利潤率擴大。第三季營收為16.5億美元，較去年同期成長4%。

Looking at our Computing and Graphics segment, third quarter CG segment revenue increased 12% year-on-year, driven by significant growth in both client processor and OEM GPU sales that offset a larger-than-expected decline in channel GPU sales. Ryzen processor sales increased to more than 70% of our total client revenue in the quarter. We delivered our highest processor unit shipments in nearly 4 years and believe we gained desktop and notebook client processor unit share in the quarter, driven by growth with both OEMs and in the channel.

縱觀我們的運算和圖形部門，第三季 CG 部門營收年增 12%，這得益於客戶端處理器和 OEM GPU 銷售的顯著成長，抵消了通路 GPU 銷售超出預期的下滑。本季度，Ryzen 處理器的銷售額成長至我們客戶總營收的 70% 以上。我們實現了近四年來最高的處理器出貨量，並且相信，在 OEM 和通路成長的推動下，本季度我們的桌上型電腦和筆記型電腦用戶端處理器份額有所增長。

In desktop, we had strong demand for our higher-end Ryzen 7, Ryzen 5 and Ryzen Threadripper processors, helping to drive a double-digit percentage year-over-year and sequential improvement in client processor ASP. We expanded our desktop offerings in the quarter, bringing our Zen processor core and Vega graphics to the entry-level part of the market with the Athlon APU and launching our flagship 32-core Threadripper 2 processor. With these new introductions, we now have a top to bottom lineup of client processors based on our high-performance Zen architecture.

在桌面領域，我們對高階 Ryzen 7、Ryzen 5 和 Ryzen Threadripper 處理器的需求強勁，這有助於推動客戶端處理器 ASP 同比增長兩位數百分比並實現連續成長。我們在本季擴展了桌上型電腦產品線，將 Zen 處理器核心和 Vega 顯示卡透過 Athlon APU 引入入門級市場，並推出了旗艦產品 32 核心 Threadripper 2 處理器。透過這些新產品的推出，我們現在擁有基於高效能 Zen 架構的全系列用戶端處理器。

In notebooks, Ryzen Mobile processor unit shipments doubled sequentially for the second straight quarter as OEMs ramped production of their latest AMD-based notebooks. 54 of the 60 Ryzen processor-based notebooks planned for 2008 (sic) [2018] have launched, with the final notebooks expected to go on sale this quarter. Based on the success of first-generation Ryzen Mobile notebooks, the expanded breadth of our customer engagements and our design win momentum, we are on track for an even larger assortment of AMD-powered notebooks in 2019.

在筆記型電腦領域，隨著 OEM 廠商加大其最新基於 AMD 的筆記型電腦的產量，Ryzen Mobile 處理器的出貨量連續第二季翻了一番。2008 年 [原文如此] 計劃推出 60 款基於 Ryzen 處理器的筆記型電腦，其中 54 款已經上市，最後一批筆記型電腦預計將於本季度上市。基於第一代 Ryzen Mobile 筆記型電腦的成功、我們客戶參與度的不斷擴大以及我們設計的成功勢頭，我們預計在 2019 年推出更多搭載 AMD 處理器的筆記型電腦。

In graphics, the year-over-year revenue decrease was primarily driven by significantly lower channel GPU sales, partially offset by improved OEM and data center GPU sales. Channel GPU sales came in lower than expected based on excess channel inventory levels caused by the decline in blockchain-related demand that was so strong earlier in the year. OEM GPU sales in the third quarter increased by a strong double-digit percentage year-over-year as new design wins began to ramp, including first shipments of our mobile Vega GPUs to support new premium notebooks launching this quarter.

在圖形領域，年比收入下降主要是由於通路 GPU 銷售額大幅下降，但 OEM 和資料中心 GPU 銷售額的提高部分抵消了這一影響。由於今年稍早區塊鏈相關需求強勁下降，導致通路庫存水準過高，因此通路 GPU 銷售額低於預期。第三季 OEM GPU 銷售額年增強勁，達到兩位數百分比，因為新設計的成功開始增加，包括我們的行動 Vega GPU 的首批出貨，以支援本季推出的新高階筆記型電腦。

In professional graphics, revenue increased by a double-digit percentage from a year ago, driven by data center GPU sales as we continued to gain traction in this important part of the market. We launched the Radeon Pro WX 8200 GPU for workstations in the quarter, delivering the world's best workstation graphics performance under $1,000 on real-time visualization, VR and photorealistic editing workloads. We remain on track to launch the industry's first 7-nanometer data center GPU this quarter. Customer interest in the product is strong based on its performance and differentiated feature set, and we have already secured multiple data center wins with shipments expected to begin in the fourth quarter. We continued to increase investments in GPU hardware and software to deliver industry-leading products that we believe will drive growth in the gaming, professional and data center markets.

在專業圖形領域，營收較去年同期成長了兩位數百分比，這得益於資料中心 GPU 的銷售，因為我們在這一重要市場領域繼續獲得發展動力。我們在本季推出了用於工作站的 Radeon Pro WX 8200 GPU，在即時視覺化、VR 和逼真的編輯工作負載方面提供了全球最佳的 1,000 美元以下工作站圖形效能。我們仍有望在本季推出業界首款 7 奈米資料中心 GPU。由於其性能和差異化功能集，客戶對該產品的興趣十分濃厚，並且我們已經贏得了多個資料中心的訂單，預計將於第四季度開始發貨。我們持續增加對 GPU 硬體和軟體的投資，以提供業界領先的產品，我們相信這些產品將推動遊戲、專業和資料中心市場的成長。

Turning to our Enterprise, Embedded and Semi-Custom segment. Third quarter revenue decreased 5% year-on-year primarily based on semi-custom sales declining, as expected, as current generation consoles entered their sixth year.

轉向我們的企業、嵌入式和半客製化領域。第三季營收年減 5%，主要原因是半客製化銷售額下降，這是意料之中的，因為當前世代遊戲機已進入第六年。

In server, we delivered our third straight quarter of strong double-digit percentage sequential revenue and unit shipment growth. We are seeing the largest demand for our top of the stack 24- and 32-core EPYC processors, which combine industry-leading core count and I/O to deliver performance advantages across cloud, virtualization and HPC workloads. We continued to accelerate engagements with our cloud service providers, highlighted by yesterday's announcement that Oracle launched new AMD-powered emphasis that offer significant TCO and performance advantages on general-purpose cloud workloads and Oracle applications. We expect additional Tier 1 cloud service providers to announce availability of new EPYC processor deployment this quarter. We secured multiple new customer wins on the HPC front, including Microsoft's announcement they would offer an EPYC processor-based supercomputing instance, and that Haas Racing has chosen Cray to build an EPYC-powered supercomputer to improve their computational fluid dynamics modeling for future cars.

在伺服器方面，我們連續第三個季度實現了強勁的兩位數百分比連續收入和單位出貨量成長。我們看到市場對我們的頂級 24 核心和 32 核心 EPYC 處理器的需求最大，這些處理器結合了業界領先的核心數量和 I/O，可在雲端、虛擬化和 HPC 工作負載中提供效能優勢。我們繼續加快與雲端服務供應商的合作，昨天宣布 Oracle 推出了新的由 AMD 提供支援的重點產品，在通用雲端工作負載和 Oracle 應用程式上提供顯著的 TCO 和效能優勢。我們預計本季將有更多一級雲端服務供應商宣布推出新的 EPYC 處理器部署。我們在 HPC 方面贏得了多個新客戶，包括微軟宣布將提供基於 EPYC 處理器的超級計算實例，以及 Haas Racing 選擇 Cray 構建基於 EPYC 的超級電腦以改進其未來汽車的計算流體動力學模型。

Turning to enterprise adoption. We continue to build a strong pipeline and accelerate the ongoing ramps of EPYC-based offerings from the major OEMs, including Cisco, Dell and HP Enterprise. In the third quarter, we added dozens of new end customers across oil and gas, health care, aerospace, banking and other industries based on the superior performance of EPYC processors in both data analytics and general-purpose virtualized workloads. We began sampling our next-generation Rome server chip broadly across our customer base in the third quarter, and the feedback on this leadership product is very strong. As a result, cloud and OEM customers are engaging earlier, deeper and more collaboratively with us on both Rome and our long-term data center road map. We remain on track to exit the year with mid-single-digit server unit market share based on cloud customer adoption. And based on our strong competitive position and broad customer engagements, we believe we can achieve double-digit server unit share with Rome.

轉向企業採用。我們將繼續建立強大的產品線，並加速思科、戴爾和惠普企業等主要 OEM 廠商基於 EPYC 的產品的持續推廣。第三季度，憑藉EPYC處理器在數據分析和通用虛擬化工作負載方面的卓越效能，我們在石油天然氣、醫療保健、航空航太、銀行業和其他行業增加了數十個新的終端客戶。我們從第三季開始在客戶群中廣泛試用我們的下一代 Rome 伺服器晶片，這款領先產品的回饋非常強烈。因此，雲端和 OEM 客戶在羅馬和我們的長期資料中心路線圖上與我們進行了更早、更深入和更緊密的合作。根據雲端客戶的採用情況，我們仍有望在今年底前實現中等個位數的伺服器市場份額。基於我們強大的競爭地位和廣泛的客戶參與，我們相信我們可以與 Rome 一起實現兩位數的伺服器單位份額。

In closing, 2018 remains an inflection point for AMD as we expect to exit the year with well over 50% of our revenue coming from new products, driving significant margin expansion. The foundational changes we have made across the business to strengthen our execution, and the investments we have made to deliver a leadership Computing and Graphics road map are paying off. Our current generations of high-performance CPUs and GPUs are doing very well in market, putting us on track to increase profitability, grow revenue and expand margin for the second straight year. We see significant opportunities to build on this momentum as we transition to our next generations of high-performance products and launch the industry's first 7-nanometer x86 CPUs and discrete GPUs over the coming quarters. Demand for our high-performance computing offerings remains strong, and our product portfolio and competitive positioning are getting stronger. We remain focused on executing our strategy and delivering our leadership product road map.

最後，2018 年仍然是 AMD 的一個轉捩點，我們預計今年結束時我們的營收將有超過 50% 來自新產品，從而推動利潤率大幅成長。我們為加強執行力而在整個業務範圍內進行的基礎性變革，以及為提供領導力計算和圖形路線圖而進行的投資正在獲得回報。我們目前幾代高效能 CPU 和 GPU 在市場上表現非常出色，使我們連續第二年實現獲利能力的提高、收入的增加和利潤率的擴大。隨著我們向下一代高性能產品過渡並在未來幾季推出業界首款 7 奈米 x86 CPU 和獨立 GPU，我們看到了利用這一勢頭的重大機會。市場對我們的高效能運算產品的需求依然強勁，我們的產品組合和競爭地位也越來越強。我們將繼續專注於執行我們的策略和提供我們的領導產品路線圖。

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

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。德文德？

Thank you, Lisa. Good afternoon, everyone. Q3 was a good quarter for AMD as revenue, operating margin and earnings per share grew year-over-year. Gross margin was 40%, highlighted by the continuing ramp of our new Ryzen and EPYC products. We strengthened the balance sheet, reduced long-term debt by $97 million and further improved our gross leverage. Quarterly revenue of $1.65 billion was up 4% year-over-year, driven by higher Computing and Graphics segment revenue with higher client revenue more than offsetting global graphics revenue; third quarter revenue including IP-related revenue, of which $86 million was related to our THATIC joint venture.

謝謝你，麗莎。大家下午好。第三季度對 AMD 來說是一個良好的季度，因為營收、營業利潤率和每股盈餘都較去年同期成長。毛利率為 40%，這得益於我們新的 Ryzen 和 EPYC 產品的持續成長。我們加強了資產負債表，減少了 9,700 萬美元的長期債務，並進一步提高了我們的總槓桿率。季度收入為 16.5 億美元，年增 4%，這得益於計算和圖形部門收入的增加，其中客戶收入的增加超過了全球圖形收入；第三季度收入包括 IP 相關收入，其中 8600 萬美元與我們的 THATIC 合資企業有關。

Gross margin was 40%, up 390 basis points year-over-year, primarily driven by the ramp of new products, including Ryzen and EPYC processors. On a sequential basis, gross margin was up 280 basis points primarily driven by IP-related revenue and the ramp of new products. Excluding IP-related revenue and memory and inventory-related adjustments, third quarter gross margin would have been 2 percentage points lower. Operating expenses grew 12% year-over-year to $476 million, driven by R&D investments in our product road maps and incremental go-to-market investments. Operating income grew to $186 million from $148 million a year ago. Operating margin was 11%, and both business segments recorded double-digit operating margin percentage. Net income was $150 million compared to $100 million a year ago. Non-GAAP diluted earnings per share, using a diluted share count of 1,177,000,000, was $0.13 compared to $0.09 per share a year ago.

毛利率為 40%，年增 390 個基點，主要得益於 Ryzen 和 EPYC 處理器等新產品的推出。與上一季相比，毛利率上升了 280 個基點，這主要得益於 IP 相關收入和新產品的成長。不包括與 IP 相關的收入以及與記憶體和庫存相關的調整，第三季的毛利率將下降 2 個百分點。營運費用年增 12% 至 4.76 億美元，這得益於我們在產品路線圖方面的研發投資以及增量上市投資。營業收入從一年前的 1.48 億美元成長至 1.86 億美元。營業利益率為11%，兩個業務部門的營業利潤率均達到兩位數百分比。淨收入為 1.5 億美元，而去年同期為 1 億美元。非 GAAP 稀釋每股收益（以 1,177,000,000 股稀釋股份計算）為 0.13 美元，去年同期為 0.09 美元。

Now turning to the business segment results. Computing and Graphics segment revenue was $938 million, up 12% year-over-year. Revenue growth was driven primarily by strong Ryzen product sales as we expanded our client compute offerings in the quarter. Ryzen products accounted for more than 70% of client revenue, up from approximately 60% last quarter as we saw strength in both desktop and notebook offerings across OEM and channel partners. In graphics, channel GPU sales were down year-over-year, partially offset by strong Radeon data center and OEM GPU demand. For comparative purposes, third quarter 2017 blockchain-related GPU sales were approximately high single-digit percent of overall AMD revenue, while blockchain revenue in the third quarter of this year was negligible. Computing and Graphics segment operating income was $100 million or 11% of segment revenues compared to operating income of $73 million a year ago. The increase was primarily driven by a richer client product mix and IP-related revenue, partially offset by lower graphics revenue.

現在來談談業務部門的業績。計算和圖形部門收入為 9.38 億美元，年增 12%。由於我們在本季擴大了客戶端運算產品，營收成長主要得益於 Ryzen 產品的強勁銷售。由於我們看到 OEM 和通路合作夥伴的桌上型電腦和筆記型電腦產品均表現強勁，Ryzen 產品佔客戶收入的 70% 以上，高於上一季的約 60%。在圖形方面，通路 GPU 銷售額年減，但 Radeon 資料中心和 OEM GPU 需求強勁，部分抵消了這一影響。為了進行比較，2017 年第三季區塊鏈相關的 GPU 銷售額約佔 AMD 整體收入的個位數高百分比，而今年第三季的區塊鏈收入微不足道。計算和圖形部門的營業收入為 1 億美元，佔部門收入的 11%，而去年同期的營業收入為 7,300 萬美元。這一成長主要得益於更豐富的客戶產品組合和 IP 相關收入，但圖形收入的下降部分抵消了這一增長。

Enterprise, Embedded and Semi-Custom revenue was $715 million, down 5% year-over-year. The year-over-year revenue decrease was driven primarily by lower semi-custom product and IP-related revenue, partially offset by higher server sales. For the third quarter in a row, EPYC processor units and revenue grew by strong double-digit percentages quarter-over-quarter. EESC operating income was $86 million or 12% of segment revenue. This is up from operating income of $74 million a year ago primarily due to a richer server and semi-custom product mix.

企業、嵌入式和半客製化收入為 7.15 億美元，年減 5%。收入同比下降主要是由於半客製化產品和 IP 相關收入下降，但伺服器銷售增加部分抵消了這一影響。連續第三個季度，EPYC 處理器銷售和收入環比增長強勁，達到兩位數百分比。EESC 營業收入為 8,600 萬美元，佔部門收入的 12%。這比去年同期的 7,400 萬美元的營業收入有所增加，主要原因是伺服器和半客製化產品組合更加豐富。

Turning to the balance sheet. Our cash, cash equivalents and marketable securities totaled $1.06 billion at the end of the quarter, and we generated free cash flow of $62 million. Inventory was down sequentially from $750 million to $738 million. Total principal debt was $1.6 billion as we reduced our long-term debt by $97 million in the quarter. Term debt due in March 2019 is down to $66 million, and beyond that, there are no term debt maturities until 2022. Adjusted EBITDA was $227 million compared to $184 million a year ago, and on a trailing 12-month basis, adjusted EBITDA was $709 million, resulting in gross debt leverage of 2.2x.

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 10.6 億美元，並產生了 6,200 萬美元的自由現金流。庫存從 7.5 億美元連續下降至 7.38 億美元。由於本季我們減少了 9,700 萬美元的長期債務，因此本金債務總額為 16 億美元。2019 年 3 月到期的定期債務降至 6,600 萬美元，除此之外，直到 2022 年都沒有定期債務到期。調整後的 EBITDA 為 2.27 億美元，而去年同期為 1.84 億美元；過去 12 個月，調整後的 EBITDA 為 7.09 億美元，總負債槓桿率為 2.2 倍。

Now turning to our financial outlook. For the fourth quarter 2018, AMD expects revenue to be approximately $1.45 billion, plus or minus $50 million. This would be an increase of approximately 8% year-over-year driven by sales growth of Ryzen, EPYC and data center GPU products. For comparative purposes, Q4 2017 revenue was $1.34 billion adjusted for the ASC 606 revenue accounting standard and included blockchain-related GPU sales of approximately low double-digit percent of overall AMD revenue. Sequentially, the midpoint of fourth quarter revenue outlook would be a decrease of approximately 12%, driven primarily by lower semi-custom sales. In addition, for Q4 2018, we expect non-GAAP gross margin to be approximately 41%, up from 34% in the prior year driven by the ramp of Ryzen, EPYC and data center GPU processor sales; non-GAAP operating expenses to be approximately $465 million; non-GAAP interest expense, taxes and other to be approximately $30 million; and free cash flow to be positive. For the full year 2018, we continue to expect annual revenue growth of mid-20s percent and to be free cash flow positive, and we now expect non-GAAP gross margin in excess of 38%.

現在來談談我們的財務前景。對於 2018 年第四季度，AMD 預計營收約 14.5 億美元，上下浮動 5,000 萬美元。這將比去年​​同期成長約 8%，這主要得益於 Ryzen、EPYC 和資料中心 GPU 產品的銷售成長。為了進行比較，根據 ASC 606 營收會計準則調整後，2017 年第四季的營收為 13.4 億美元，其中區塊鏈相關的 GPU 銷售額約佔 AMD 整體收入的低兩位數百分比。環比來看，第四季營收預期中位數將下降約 12%，主要原因是半客製化銷售額下降。此外，對於 2018 年第四季度，我們預計非 GAAP 毛利率約為 41%，高於去年同期的 34%，這得益於 Ryzen、EPYC 和資料中心 GPU 處理器銷量的增長；非公認會計準則營運費用約為 4.65 億美元；非公認會計準則為正利息稅金及其他約為 3,000 萬美元利息；對於 2018 年全年，我們繼續預期年收入成長率將達到 25% 左右，自由現金流將為正，目前我們預計非 GAAP 毛利率將超過 38%。

In closing, the third quarter was a good quarter as we continue to ramp our new products. This momentum is driving improvement in our financial results against a backdrop of expanding customer demand as we prepare to ship and launch our first 7-nanometer GPU products before the end of the year. We are executing on our strategy and investment and financial priorities as we continue making excellent progress towards our long-term target financial model.

總而言之，第三季表現良好，因為我們繼續推出新產品。在我們準備在年底前推出首批 7 奈米 GPU 產品之際，在客戶需求不斷擴大的背景下，這一勢頭正在推動我們的財務表現改善。我們正在執行我們的策略、投資和財務重點，並繼續在實現我們的長期目標財務模式方面取得優異進展。

With that, I'll turn it back to Laura for the question-and-answer 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.

謝謝你，Devinder。接線員，我們已經準備好回答第一個問題了。

(Operator Instructions) Our first question today is coming from Mark Lipacis from Jefferies.

（操作員指示）我們今天的第一個問題來自 Jefferies 的 Mark Lipacis。

First question, if I may, Lisa, as you look into the fourth quarter and maybe discuss also the third quarter, can you just review the important puts and takes on the revenues, on the microprocessor and GPU side separately? And I know you don't like to discuss the competition, but I think there are some unique things going on in the competitive environment. I think there's a view that Intel is capacity-constrained in -- with NVIDIA's new product launches, how is that impacting how we should be thinking about the revenues?

第一個問題，如果可以的話，麗莎，當您回顧第四季度並可能討論第三季度時，您能否分別回顧一下微處理器和 GPU 方面對收入的重要影響？我知道你不喜歡討論競爭，但我認為在競爭環境中會發生一些獨特的事情。我認為有一種觀點認為英特爾的產能受到限制——隨著 NVIDIA 新產品的推出，這會如何影響我們對收入的看法？

Yes. Mark, thanks for the question. So let me take those in order here. So if we just look at the third quarter revenue, I would say that we did see a shift in our revenue mix as we went through the third quarter. Looking at the individual product lines, we had expected that the client business would be strong as we were ramping quite a few new notebook OEM systems as well as we have strong desktop product portfolio. And we saw the client business was strong. It was actually up probably a bit stronger than we expected. The server business also performed quite well. In the graphics business, we had our OEM and data center compute business performing well, but we did see the softness in the channel that was larger than we expected, and that was due to some of the channel inventory comments that I made earlier.

是的。馬克，謝謝你的提問。因此，讓我在這裡按順序進行。因此，如果我們只看第三季的收入，我會說，在第三季度，我們確實看到了收入結構的變化。從各個產品線來看，我們預計客戶業務將會表現強勁，因為我們正在推出相當多的新型筆記型電腦 OEM 系統，而且我們擁有強大的桌上型電腦產品組合。我們看到客戶業務表現強勁。事實上，它的漲幅可能比我們預期的要強一些。伺服器業務也表現相當不錯。在圖形業務方面，我們的 OEM 和資料中心計算業務表現良好，但我們確實看到渠道的疲軟程度超出我們的預期，這是由於我之前對一些渠道庫存的評論造成的。

Now as you shift into the fourth quarter, I think what we see is that our fourth quarter revenue mix really mixes towards the new products. And so what you see in the product lines are -- you'd see the client business continue to grow, and client is usually seasonally down into the fourth quarter. So we're doing better than seasonality with the client business. We expect the server business to grow as well as we get more traction with our EPYC products, especially in the cloud. And then we would expect, with our graphics business, that, that will also grow sequentially primarily on the strength of new products around our data center GPUs and the semi-custom business actually will decline sequentially. Semi-custom business always declines in fourth quarter. I would say this fourth quarter is a bit more pronounced. It gets a bit more pronounced as we get later in the cycle as well as the fact that the 606 accounting regulations tended to pull some of the revenue earlier in the year. But hopefully, that gives you a view of sort of the puts and takes around revenue.

現在進入第四季度，我認為我們看到的是，第四季度的收入結構確實向新產品傾斜。因此，您在產品線中看到的是 - 您會看到客戶業務持續成長，並且客戶通常會在第四季度出現季節性下降。因此，我們在客戶業務方面的表現比季節性更好。我們預計，隨著我們的 EPYC 產品（尤其是在雲端）獲得更多關注，伺服器業務也將隨之成長。然後，我們預計，我們的圖形業務也將連續成長，這主要得益於我們資料中心 GPU 周圍的新產品的強勁成長，而半客製化業務實際上將連續下降。半客製化業務在第四季總是下滑。我想說第四季的情況更加明顯。隨著週期的後期，這種現象變得更加明顯，而且 606 會計法規往往會在年初拉動部分收入。但希望這能讓您大致了解收入的投入和產出。

That's very helpful, and if I follow up if I may. I think I heard Devinder say that you're expecting to ship EPYC 2 before the end of this year. And if I think back to a dozen years ago when you had the second-generation server product, that kind of signaled an opportunity for an inflection in the revenues. How should we think about EPYC 2 as we go into early next year? And what does EPYC 2 bring to your customers that EPYC did not?

這非常有幫助，如果可以的話我會跟進。我想我聽到 Devinder 說過，您預計在今年年底之前推出 EPYC 2。如果我回想一下十多年前，當你擁有第二代伺服器產品時，這標誌著收入出現拐點的機會。進入明年年初，我們該如何看待 EPYC 2？EPYC 2 能為您的客戶帶來什麼 EPYC 所沒有的功能？

Yes. So Mark, maybe just a correction. So I think Devinder's comment was that our 7-nanometer GPU would ship here in the fourth quarter, and we're on track to launch that here shortly. The second-generation of EPYC, our 7-nanometer CPU, will ship in 2019. We are broadly sampling it now. I think from what we see, the performance is very competitive. And also, many of our customers have had a chance to really spend time with the first generation of EPYC, get to learn our architecture and do much of the platform bring-up. So we're excited about what the second generation of EPYC can do for us. We're -- and we're going to talk a little bit more about that in a couple weeks at our data center event, but we believe that our competitive position gets stronger as we get into 2019.

是的。所以馬克，也許只是一個更正。所以我認為 Devinder 的評論是我們的 7 奈米 GPU 將在第四季度在這裡發貨，而且我們預計很快就會在這裡推出它。我們的 7 奈米 CPU 第二代 EPYC 將於 2019 年上市。我們現在正在廣泛地進行抽樣。我認為從我們所看到的情況來看，其表現非常具有競爭力。此外，我們的許多客戶都有機會真正花時間了解第一代 EPYC，了解我們的架構並完成大部分平台啟動工作。因此，我們對第二代 EPYC 能為我們做什麼感到非常興奮。我們將在幾週後的資料中心活動上進一步討論這個問題，但我們相信，隨著進入 2019 年，我們的競爭地位將變得更加強大。

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

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

Lisa, can you give us the puts and takes -- or Devinder or both, on the gross margin dynamic in Q3? And also, in Q4? Is there an IP component in Q4? And I have a follow-up.

Lisa，您能否告訴我們——或者 Devinder 或者兩者關於第三季度毛利率動態的利弊？還有，在第四季？Q4 中有 IP 元件嗎？我還有一個後續問題。

Sure. Let me -- maybe let me start and then Devinder can add. So on the gross margin for the third quarter, I think we were up 4% year-on-year. We did have an IP component in this year as we had an IP component in the third quarter of last year. The majority of the improvement though was due to the positive product mix, sort of the client and server business really growing year-on-year and with that, improving the product mix. As we go into the fourth quarter, there is no IP-related revenue that's planned right now. So with the guide at 41% margin, we really are at the -- let's call it, the low end of our long-term guidance. And again, that's on the strength of the product mix. It's a very positive product mix for us. The processor business, as we've always said, the new products are accretive to margin. And so the client business is expected to grow. The server business is expected to grow. The data center GPUs are expected to grow. And then there is a portion of that, that is the semi-custom business declining sequentially, but I would say that's the smaller portion. It's really the positive product mix that's going into the Q4 guide. And maybe, Devinder, is there anything you wanted to add?

當然。讓我——也許讓我開始，然後 Devinder 可以添加。因此，就第三季的毛利率而言，我認為我們比去年同期成長了 4%。我們今年確實有一個 IP 組件，就像去年第三季有一個 IP 組件一樣。不過，大部分的改善是由於積極的產品組合，客戶端和伺服器業務確實同比增長，隨之而來的是產品組合的改善。進入第四季度，目前還沒有計劃中的 IP 相關收入。因此，按照 41% 的利潤率指導，我們確實處於——我們稱之為長期指導的低端。再次強調，這是基於產品組合的優勢。對我們來說這是一個非常積極的產品組合。正如我們一直所說，處理器業務的新產品可以增加利潤。因此客戶業務預計會成長。伺服器業務預計將會成長。資料中心 GPU 預計還會成長。其中有一部分是半定制業務，其環比下降，但我認為這是較小的部分。這確實是第四季度指南中的積極產品組合。也許，Devinder，您還有什麼要補充的嗎？

No, I think you covered it, Lisa. Thank you.

不，我想你已經講清楚了，麗莎。謝謝。

Great. And then a follow-up. If you don't mind as a follow-up. As we look into early 2019, what can we expect in terms of seasonality for the semi-custom part of the business and on the PC side just because there are some constraints out there that -- from Intel and so on?

偉大的。然後進行後續行動。如果您不介意的話，請繼續關注。展望 2019 年初，由於英特爾等一些因素的限制，我們對半客製化業務和 PC 方面的季節性有何預期？

Yes. So look, if you -- Hans, our typical seasonality is the second half of the year is stronger than the first half of the year. As we go into 2019, you would expect that the semi-custom business will be down relative to this year and then you would expect that we're still going to need a bit of time to work through some of this graphics channel inventory that we have. But on the positive side, we do see strength in our processor business in both the client and the server side. As it relates to the current supply environment, we did see some pockets of constraints in the supply chain around PCs. We saw that towards the end of the third quarter. We are increasing our production such that we can satisfy some of that demand. And I think that's a short-term statement, but I think on a midterm statement, it's an environment where we're partnering very closely with our OEMs to make sure their requirements are met.

是的。所以，如果你看──漢斯，我們典型的季節性是下半年比上半年更強。當我們進入 2019 年時，您可能會預期半客製化業務相對於今年會有所下降，然後您會預期我們仍然需要一些時間來處理我們擁有的一些圖形通路庫存。但從積極的一面來看，我們確實看到我們的處理器業務在客戶端和伺服器端都表現強勁。就目前的供應環境而言，我們確實看到個人電腦供應鏈中存在一些限制。我們在第三季末看到了這一點。我們正在提高產量以滿足部分需求。我認為這只是一個短期聲明，但我認為從中期聲明來看，我們將與我們的 OEM 密切合作，以確保滿足他們的要求。

Our next question is coming from Matt Ramsay from Cowen and Company.

我們的下一個問題來自 Cowen and Company 的 Matt Ramsay。

Lisa, I wanted to follow up a little bit on the last, I guess, couple of sentences in your prior answer there. There's a lot of things moving in the model near term, but as we think about how you're positioning the company in the client business over the next, I don't know, 24 months or so, with some supply constraints at Intel and some changes in their marketing support for OEMs for some of those programs and their spending, how do you think about how you're positioned with the key top 5 or 6 OEMs in terms of both PC and, I guess, desktop and notebook over the next 24 months? And sort of what are the puts and takes of how much you're really willing to lean into that business in order to gain unit share?

麗莎，我想稍微跟進一下你之前回答中的最後幾句話。短期內該模型中有很多事情會發生改變，但是當我們思考未來（我不知道，大約 24 個月）您如何定位公司在客戶端業務中的定位時，考慮到英特爾的一些供應限制以及他們對 OEM 的某些項目的營銷支持和支出的一些變化，您如何看待未來 24 個月內在 PC 以及前台式機和筆記本電腦方面與前台式電腦為了獲得單位份額，您真正願意在該業務上投入多少？

Yes. Matt, thanks for the question. So on the PC business particularly around client processors, I am bullish on that business. It's a good business for us. Our products are very well positioned when you look at both the desktop and notebook segment. It was important for us to get these new platforms out into the market, and so we have 54 new notebook platforms that are out in the market with a few more to go as we enter -- finish up here the fourth quarter. I think the traction that we see in terms of unit shipments, the metric around Ryzen being 70% of our client business -- over 70%, and we expect that to continue to accelerate. So we're bullish on the client business as a good business for us to grow over the next 12 to 24 months.

是的。馬特，謝謝你的提問。因此，對於 PC 業務，特別是客戶端處理器業務，我持樂觀態度。這對我們來說是一筆好生意。無論從桌上型電腦還是筆記型電腦市場來看，我們的產品都處於非常有利的地位。對我們來說，將這些新平台推向市場非常重要，因此我們在市場上推出了 54 個新筆記型電腦平台，並且在進入第四季時還會推出更多平台。我認為，就單位出貨量而言，我們看到的牽引力是，Ryzen 占我們客戶業務的 70% 以上，我們預計這一增長將繼續加速。因此，我們看好客戶業務，認為這將是我們未來 12 到 24 個月內成長的良好業務。

Got it. That's helpful. And just as a follow-up, I understand in a couple of weeks, you'll probably be talking a bit more about the data center GPU portfolio. But I guess there's been a lot of movement in software ecosystem as you've been working, and the team has, to develop the MIOpen product in terms of software. Maybe you could give us a little bit of an update on how you feel that's positioned for Caffe and Tensor, which, I guess, are the 2 key development environments for AI. And what do you think the long-term prospects for that business are over the next couple of years?

知道了。這很有幫助。作為後續，我了解到幾週後，您可能會更多地談論資料中心 GPU 產品組合。但我想，隨著您和您的團隊致力於開發 MIOpen 產品的軟體，軟體生態系統已經發生了很大的變化。也許您可以向我們稍微介紹一下您對 Caffe 和 Tensor 的定位的看法，我想，它們是人工智慧的兩個關鍵開發環境。您認為未來幾年該業務的長期前景如何？

Yes. So on the data center GPU business, this will continue to be an area of investment for us. I think we've made very nice progress this year. I think as we finish up the year, we expected to again make good progress. We have invested in -- on both the hardware and the software side. So I think the 7-nanometer GPU starting shipments here in the fourth quarter is important for us. And on the software side, yes, we will also be updating the status of our software environment. I think the nice thing is, as we say, the data center is just an enormous opportunity, whether you're talking about CPUs or GPUs, and we're engaging deeply with cloud customers who are spending the time and the resources to optimize to our architecture. So again, I think it's -- data center tends to take longer from design win to revenue, but we're starting to see some nice signals there.

是的。因此，對於資料中心 GPU 業務來說，這將繼續是我們投資的領域。我認為我們今年取得了非常好的進展。我認為，隨著今年的結束，我們有望再次取得良好的進展。我們在硬體和軟體方面都進行了投資。因此我認為在第四季度開始出貨的 7 奈米 GPU 對我們來說很重要。在軟體方面，是的，我們還將更新我們的軟體環境的狀態。我認為好的方面是，正如我們所說，資料中心是一個巨大的機遇，無論您談論的是 CPU 還是 GPU，我們正在與花費時間和資源來優化我們的架構的雲端客戶進行深入接觸。所以，我再次認為——資料中心從設計獲勝到獲得收入往往需要更長的時間，但我們開始看到一些好的訊號。

Our next question today is coming from Mitch Steves from RBC Capital Markets.

今天的下一個問題來自加拿大皇家銀行資本市場的 Mitch Steves。

I had 2 of them really quick. So first is actually on the CPU side, the server side. So is there any reason why a 10-nanometer chip wouldn't be able to outperform your 7-nanometer product given that you've already been able to do some of the testing on the server side?

我很快就吃掉了 2 個。所以首先其實是在 CPU 端，也就是伺服器端。那麼，既然你們已經能夠在伺服器端進行一些測試，那麼 10 奈米晶片的效能是否還無法超越 7 奈米產品呢？

Maybe I would answer the question this way. When we look at our 7-nanometer product and its positioning in 2019 across the server landscape, we feel very good about the positioning. I think it's not just 7-nanometer. 7-nanometer is important, but we've also made some significant changes to the architecture as well as how -- sort of the system. So I think overall, we feel, with the design and process capabilities, that our 7-nanometer products will be quite competitive.

也許我會這樣回答這個問題。當我們審視我們的 7 奈米產品及其在 2019 年伺服器領域的定位時，我們對這一定位感到非常滿意。我認為不僅僅是 7 奈米。7 奈米很重要，但我們也對架構以及系統類型做了一些重大改變。因此我認為總體而言，我們認為憑藉設計和製程能力，我們的 7 奈米產品將具有相當的競爭力。

Got it. And then secondly from me, in terms of production, I know you guys have kind of given the mid-singles and kind of double-digit market share opportunity in the server side. So is that due to capacity constraint at TSMC? Or is that just due to your own estimates of what type of share you think you can get?

知道了。其次，就生產而言，我知道你們在伺服器端已經為中路和兩位數的市佔率提供了機會。那麼這是由於台積電的產能限制嗎？或者這僅僅是因為您自己估計您認為可以獲得什麼類型的份額？

Well, we have a great relationship with TSMC. I think they're very supportive of our road map in 7-nanometer. So it's not due to any supply constraint. It's just due to the time that we believe that we'll take for vendors to really qualify new systems.

嗯，我們與台積電的關係很好。我認為他們非常支持我們的 7 奈米路線圖。所以這並不是由於任何供應限製造成的。這只是因為我們相信供應商需要時間來真正驗證新系統。

Got it. Just -- and just one last really small one from me. The graphics business, the highest blockchain or cryptocurrency quarter was Q1 of '18. Is that correct?

知道了。只是──這是我最後一個非常小的問題。圖形業務、區塊鏈或加密貨幣最高的季度是 2018 年第一季。對嗎？

The highest -- it was between Q4 and Q1. They were pretty close.

最高——是在第四季和第一季之間。他們的關係非常親密。

Our next question is coming from Vivek Arya from Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的 Vivek Arya。

For the first one, Lisa, can you help us kind of quantify how much of a headwind was that excess -- the graphics inventory in Q3 and maybe also in Q4 so we can reconcile some of the differences between what you are reporting and guiding versus some of the consensus expectations out there?

首先，麗莎，您能否幫助我們量化第三季度以及第四季度的圖形庫存過剩帶來的阻力有多大，以便我們能夠調和您所報告和指導的內容與外界普遍預期之間的一些差異？

Yes, sure, Vivek. So the best thing I can say is when we look at the CG segment, that's a segment -- we're down about $150 million here in the third quarter. We had expected the segment to be down, but we probably expected it to be down about $50 million or so. And if you look at that difference from when we started the quarter, that's entirely the GPU channel. We had some other puts and takes in there, but it's basically the GPU channel. As we go into the fourth quarter, we do expect graphics to be up, and that's primarily on the strength of the data center GPU business, and we're modeling the channel as, let's call it, roughly flattish. It's seasonally about flattish, but given some of the inventory in the channel, that's how we're modeling. Does that help?

是的，當然，維韋克。因此，我能說的最好的事情是，當我們看 CG 部分時，這是一個部分——我們在第三季度虧損了約 1.5 億美元。我們原本預計該部分業務將會下降，但我們預計下降幅度可能在 5,000 萬美元左右。如果你看一下與本季開始時的差異，你會發現這完全是 GPU 管道造成的。我們在那裡進行了一些其他的操作，但它基本上是 GPU 通道。進入第四季度，我們確實預計圖形銷量會上升，這主要得益於資料中心 GPU 業務的強勁成長，而我們將通路建模為大致持平。從季節性來看，這是比較平穩的，但考慮到渠道中的一些庫存，這就是我們的建模方式。這樣有幫助嗎？

Yes. So basically, you're saying this problem kind of goes away in Q4 or you're done with it by now. Or can it continue to be a headwind in Q4?

是的。所以基本上，您是說這個問題會在第四季度消失，或者現在已經解決了。或者它會在第四季繼續成為逆風嗎？

Well, we are expecting that it might take a couple of quarters to completely get back to, let's call it, a normal channel. However, it is factored into our Q4 guidance.

嗯，我們預計可能需要幾個季度才能完全恢復到正常管道。然而，它已被計入我們的第四季指引中。

All right. And then the second one, Lisa, is on the server business. So you outlined the target to get to mid-single digit exiting this year. Is the next 5% share easier or tougher to get? How do you think your competitor will respond? And how important is it to ramp your 7-nanometer product next year to get towards that -- to make that jump from the 5% to the next target of 10% share?

好的。第二位是麗莎 (Lisa)，負責伺服器業務。所以您概述了今年實現中等個位數退出的目標。獲得接下來的 5% 份額是更容易還是更難？您認為您的競爭對手會如何回應？那麼，明年加大 7 奈米產品的產量以實現這一目標（從 5% 躍升至 10% 的下一個目標）有多重要？

Yes. So I -- the way I look at it, Vivek, is it's really a continuum. And the continuum is we have a number of customers that are very actively working with EPYC. I think the first 5% does include some cloud customers ramping, and that's important. And then as we go beyond that, we would expect that they're more used to our architecture. Our architecture is socket-compatible between the first and second generation. We're sampling it now. And so I think the idea is we would like to see some acceleration in that as we bring in the 7-nanometer product, but we'll certainly have to go through that process.

是的。所以我 — — 維韋克，我的看法是，它實際上是一個連續體。連續性是我們擁有大量積極使用 EPYC 的客戶。我認為前 5% 確實包括一些雲端客戶的增加，這很重要。當我們超越這一點時，我們期望他們會更習慣我們的架構。我們的架構在第一代和第二代之間是套接字相容的。我們現在正在對其進行採樣。因此，我認為我們希望在推出 7 奈米產品時看到這一進程有所加速，但我們肯定必須經歷這個過程。

Our next question is coming from Stacy Rasgon from Bernstein Research.

我們的下一個問題來自伯恩斯坦研究公司的 Stacy Rasgon。

First, I wanted to ask about graphics trajectory in the next year. I mean, given my math -- I know you talked about maybe $100 million light versus your expectation, but my math suggests that might have fallen as much as $250 million sequentially if you're going to get it at least to the level that it was last year. Now if I look at what that trajectory means going further and if I ask you whether or not you thought graphics revenues to be down 20% year-over-year in 2019, like how would you feel about that? What's your response to that?

首先，我想問明年的圖形發展軌跡。我的意思是，根據我的計算——我知道您說的可能比您的預期少了 1 億美元，但我的計算表明，如果您要將其至少恢復到去年的水平，那麼這個數字可能會連續下降 2.5 億美元。現在，如果我進一步看看這個軌跡意味著什麼，如果我問你是否認為 2019 年圖形收入將同比下降 20%，你對此有何感想？您對此有何回應？

Yes. Stacy, let me make sure I clarify the first comment and then I'll certainly answer the comment. My comment was at the segment level. So at the segment level, I said we were about $100 million light, and I also said that client performed a little bit better than expected. So I think you can say that it was probably -- if you -- that should help quantify sort of Q3. When I look at it going forward, I would not expect that type of decline on a year-on-year basis. I think what you'll see is some funky seasonality, right. So the first half of the year was very strong for graphics. I think the first half of '19 will not be very strong for graphics, but we have a number of product launches coming up, and we're pretty excited about some of those product launches. And so I would view that -- we need to work off some of this channel inventory that's in place and then go back to sort of a more typical seasonality, which would see the second half stronger than the first. Does that help?

是的。史黛西，讓我確保我澄清了第一條評論，然後我一定會回答該評論。我的評論是分段級別的。因此，在細分市場層面，我說我們的虧損約為 1 億美元，而且我還說客戶的表現比預期要好一些。所以我認為你可以說，這很可能——如果你——這應該有助於量化 Q3。當我展望未來時，我預計不會出現這種同比下降。我想你會看到一些有趣的季節性，對吧。因此，今年上半年圖形產業表現非常強勁。我認為 2019 年上半年的圖形業務不會很強勁，但我們即將推出多款產品，我們對其中一些產品的發布感到非常興奮。因此，我認為——我們需要處理一些現有的通路庫存，然後回到更典型的季節性，這樣下半年的表現就會比上半年更強勁。這樣有幫助嗎？

Okay. That does help. For my follow-up, I want to ask about the data center GPU. So you've been talking a lot about that. You've actually been calling it out as driving, like, some of the growth in the current quarter and going forward. How big is that today? I mean, you're calling it out, but like can you give us an order of magnitude? I mean, is it more than $20 million in the quarter at this point? Where do you see that going into Q4? And like what are your expectations as you ramp the 7-nanometer product in the next year?

好的。這確實有幫助。作為我的後續問題，我想問一下有關資料中心 GPU 的問題。您已經談論了很多這個話題。您實際上已經將其稱為推動本季及未來部分成長的因素。今天它有多大？我的意思是，你正在喊出它，但是你能給我們一個數量級嗎？我的意思是，本季的金額是否超過 2000 萬美元？您認為第四季將會如何發展？您對明年推出 7 奈米產品有何期望？

You always have a way of asking the most granular questions.

您總是能提出最細微的問題。

I don't think it's that granular.

我認為它並沒有那麼細緻。

It is more than $20 million. We do see it as a driver. We do see it as more of a driver as we go into 7-nanometer. And this is one of those cases where typically, the data center products ramp slowly, but as you know, the deployments can sometimes be lumpy and there's good traction on some early design wins. And so we expect it to be a meaningful contribution in Q4.

金額超過2000萬美元。我們確實將其視為一種驅動力。當我們進入 7 奈米時，我們確實將其視為更大的驅動力。這是資料中心產品通常緩慢增長的情況之一，但正如您所知，部署有時可能會不順利，並且一些早期設計的勝利會帶來良好的牽引力。因此，我們預計它將在第四季度做出有意義的貢獻。

Got it. And just one more really quickly. How do you feel about your $0.75 in 2020? You're still holding to that?

知道了。再快一點。您對 2020 年的 0.75 美元有何感想？你還堅持這個觀點嗎？

There are no changes to our long-term financial model at this point.

目前我們的長期財務模式沒有改變。

Yes, not today.

是的，今天不行。

Not today, okay.

今天不行，好嗎。

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 just want to go back to the IP side of things. You gave some color about the fact that it's not contributing anything in the fourth quarter, and that's helpful on the gross margin side. But one other detail, Devinder or Lisa, is I think the $86 million you talked about, you said that was a portion of the IP and then you had some other inventory-related changes. Can you just give us a little bit more color on the size of those different buckets? How big was IP overall? Anything there would be helpful.

我只是想回到 IP 方面的問題。您解釋了它在第四季度沒有做出任何貢獻的事實，這對毛利率方面有幫助。但是另一個細節，Devinder 或 Lisa，我認為您談到的 8600 萬美元，您說那是 IP 的一部分，然後您還有一些其他與庫存相關的變化。您能否向我們詳細介紹一下這些不同桶的尺寸？IP 整體有多大？那裡的任何東西都會有幫助。

Yes. On the IP, I think as we talked about, this $86 million is associated with our THATIC joint venture. There were some other IP, call it, about -- approximately about $35 million in the quarter, and that is why we talked about it in 2 parts.

是的。關於 IP，我認為正如我們所討論的，這 8600 萬美元與我們的 THATIC 合資企業有關。本季度還有一些其他 IP，大約 3500 萬美元，這就是我們分兩部分討論它的原因。

And then as my follow-up. As I'm looking at the GPU side of things, not to kind of beat the dead horse there too much more, but the ASP side of that equation or pricing side, is the channel inventory clearing dynamic something that also manifests itself on pricing pressure? Or is it just a matter of time to absorb that inventory, which, Lisa, I think you said, was going to be a flat dynamic in the fourth quarter but it sounded like it was going to be returning to a headwind in the first half of next year.

然後作為我的後續行動。當我查看 GPU 方面的情況時，我不想重複太多的老生常談，但從該等式的 ASP 方面或定價方面來看，通路庫存清理動態是否也會體現在定價壓力上？或者這只是吸收庫存的時間問題，麗莎，我想你說過，第四季庫存將會持平，但聽起來明年上半年庫存將再次出現逆風。

Yes -- no. If that's how it sounded, that's not what I meant. So I would say that the GPU -- let's call it, the weakness in the GPU channel or primarily in the sell-in is, let's call it, for the -- we might see that for the next quarter or 2. But as you look through the overall business, I think -- gamers are still buying GPUs. And so this is really a matter of just absorbing some of the first half, let's call it, oversupply as it relates to GPUs and that's translating into a bit weaker sell-in. But we are still tracking the sellout and the sell-through, through the -- to the end customers.

是的——不是。如果聽起來是這樣，那我就不是這個意思了。所以我想說，GPU——我們稱之為 GPU 管道的弱點，或者主要在銷售方面的弱點，我們可能會在下一季或第二季度看到這一點。但當你縱觀整體業務時，我認為——遊戲玩家仍在購買 GPU。因此，這實際上只是吸收上半年部分供應過剩的問題，因為它與 GPU 有關，而這會導致銷售略微疲軟。但我們仍在追蹤銷售情況和銷售情況，直至最終客戶。

And if I could sneak in one quick one. Just OpEx intensity, I know you're not going to guide for OpEx for 2019, but the 26% to 29%, how do we think about where you are in the investment stage where, whether it's the EPYC or the other new products -- EPYC 2, I should say, or the other new products where you kind of get over the hump and you don't need to invest as much? Is that a framework we should think about? Or do you believe the opportunities are big enough and the competitors are spending enough that, that OpEx intensity in that range is likely to persist?

如果我能快速潛入其中的話。僅就營運支出強度而言，我知道您不會為 2019 年的營運支出提供指導，但 26% 到 29% 之間，我們如何看待您所處的投資階段，無論是 EPYC 還是其他新產品 - 我應該說 EPYC 2，或者其他新產品，您都可以克服困難，而不需要投入太多？這是我們該思考的框架嗎？或者您認為機會足夠大並且競爭對手的投入足夠大，以至於該範圍內的營運支出強度可能會持續下去？

Well, I think, Ross, if you look on an annual basis for 2008 (sic) [2018] , we'll be approximately 28% of OpEx to revenue. And I think what we've said in the past is we will grow OpEx but we will grow it slower than revenue growth on an annual basis. And that's still our philosophy.

嗯，羅斯，我認為，如果你以 2008 年 [2018] 的年度基礎來看，我們的營運支出佔收入的比例約為 28%。我認為我們過去說過的是，我們將增加營運支出，但其成長速度將低於年度收入成長速度。這仍然是我們的理念。

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。

Great. If you said this, I may have missed it, but can you talk about how much servers grew sequentially in Q3? I guess you were fairly specific on that point in Q2. I think you said double digits this quarter. Do you expect to be sort of -- as you talk about it, mid-single digit next quarter, are you kind of half way to that target this quarter? Just help us calibrate where server is.

偉大的。如果您這麼說，我可能錯過了，但您能談談第三季度伺服器數量環比增長了多少嗎？我想您在第二季度對這一點已經相當明確了。我認為您說的是本季的兩位數。您是否預計——正如您所說，下個季度的銷售額會達到個位數的中間值，那麼本季度您是否已經達到了該目標的一半？只需幫助我們校準伺服器的位置。

Yes. I think, Joe, it'd be fair to say that we have strong double digits this quarter and we'd just say we're about half way. I mean, I think that's reasonable, plus or minus.

是的。喬，我認為，可以公平地說，本季我們的成長率達到了兩位數，而且我們已經完成了一半。我的意思是，我認為這是合理的，無論好壞。

Okay, great. And then with regards to the 7-nanometer, I know you're going to talk more about this at the product launch, but can you talk about what 7-nanometer itself gives you? Is it -- do you expect there to be a higher sort of clock speed on the microprocessors in the GPUs? Is it a better transistor budget? Is it better cost per transistor? Just what are -- obviously, there's a lot riding on you guys being early in both segments on 7. Can you just talk about the benefit to that?

好的，太好了。然後關於 7 奈米，我知道您將在產品發布會上更多地談論這一點，但您能談談 7 奈米本身給您帶來了什麼嗎？您是否預計 GPU 中的微處理器的時脈速度會更高？這是更好的晶體管預算嗎？每個電晶體的成本是否更便宜？顯然，你們在 7 號的兩個部分都提前出場，這對你們來說意義重大。能談談這樣做的好處嗎？

Yes. And we will go this -- go through this in a lot more detail on November 6, but at a high level, I think 7-nanometer gives us better density. So for a given system, we can put more cores on it. It gives us better power. So that gives us total cost of ownership, and it does give us better performance as well.

是的。我們將在 11 月 6 日更詳細地討論這個問題，但從高層次來看，我認為 7 奈米可以為我們提供更好的密度。因此，對於給定的系統，我們可以在其上放置更多核心。它為我們提供了更好的動力。這樣我們就得到了整體擁有成本，也為我們帶來了更好的效能。

Our 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, congratulations on the strong gross margin results. I just wanted some clarification. The calendar fourth quarter guidance, does that include IP revenue in the gross margin? And clearly, gross margin is being helped in December by the growth in new products, but it's probably also being helped by the sharp falloff in semi-customs. Should we think about kind of the gross margin level in December as being the new floor off of which you can continue to grow sequentially even as semi-custom comes back seasonally? Or how do I think about that? Then I have a follow-up.

Lisa，恭喜你取得如此強勁的毛利率表現。我只是想得到一些澄清。日曆第四季的指導，是否包括毛利率中的 IP 收入？顯然，12 月毛利率的提高得益於新產品的成長，但也可能得益於半客製化產品的急劇下降。我們是否應該將 12 月的毛利率水準視為新的底線，即使半客製化業務季節性回歸，您也可以在此基礎上繼續連續成長？或者我該如何看待這個問題？然後我有一個後續問題。

Yes. So on the gross margin, you know, that was Q4 guidance, there is no assumed IP-related revenue. So that's all product. We do have, as I said earlier, a very positive product mix related to processor side of the business, so the client, the server as well as the data center GPUs. We are helped somewhat by the fact that semi-custom is down, but I would say the much larger piece of that is the product-related growth in new products.

是的。因此，就毛利率而言，這是第四季度的指導，沒有假設的 IP 相關收入。這就是全部產品。正如我之前所說，我們確實擁有與處理器業務相關的非常積極的產品組合，因此包括客戶端、伺服器以及資料中心 GPU。半客製化業務的下降對我們有一定的幫助，但我想說，其中更大的幫助是新產品相關的成長。

So is this the new floor, Lisa? Or is it too hard to tell?

那麼這是新樓層嗎，麗莎？還是說太難說了？

I don't know if I would say it's the new floor. I would say that we're very pleased that we're at the lower end of our long-term guidance. And certainly, we'll see what the puts and takes are as we go from a quarterly standpoint into 2019. But on a full year basis in 2018, I think Devinder mentioned this in his prepared remarks, we're now over 38%, and we've really grown margins every quarter over the last number of quarters. And we're happy with that. I think that's the strength of the model. We've always said that the strength of the model is improving the product mix, and I think that's what we see here today.

我不知道我是否會說這是新地板。我想說，我們很高興我們處於長期指導的低端。當然，從季度角度來看，我們將看到 2019 年的收益和利弊。但從 2018 年全年來看，我認為 Devinder 在他的準備好的發言中提到了這一點，我們現在的利潤率已經超過 38%，而且在過去幾個季度中，我們的利潤率每個季度都在增長。我們對此感到高興。我認為這就是該模型的優勢。我們一直說，該模型的優勢在於改善產品組合，我認為這就是我們今天所看到的。

And then Lisa, I apologize if I missed it, but just relative to your Q4 guidance, given some of the capacity issues that your competitor is having, is there any share gain -- incremental share gain assumptions based upon shortage of CPUs? Is that something that should be a tailwind in Q4? Or does that take longer, it might be something we don't see in sort of calendar first quarter? Any commentary around that would be helpful.

然後麗莎，如果我錯過了，我很抱歉，但僅相對於您的第四季度指導，考慮到您的競爭對手遇到的一些產能問題，是否有任何份額增長 - 基於 CPU 短缺的增量份額增長假設？這是否會成為第四季的順風因素？或者這需要更長的時間，這可能是我們在第一季看不到的事情？任何有關此的評論都會有幫助。

Yes. So we do see some pockets of shortages. We are ramping up production. I do believe we see some incremental benefit here in the fourth quarter, but I don't want to take away from the fact that we have a strong portfolio and we have a lot of platforms ramping. So the client business was always going to be up for us in Q4. And are we benefiting a bit from, let's call it, some of the pockets of shortages? Perhaps.

是的。因此我們確實看到了一些短缺現象。我們正在提高產量。我確實相信我們會在第四季度看到一些增量收益，但我不想否認我們擁有強大的產品組合和許多正在蓬勃發展的平台。因此，第四季度我們的客戶業務一直處於上升趨勢。那麼，我們是否從某些短缺中獲得了一點好處呢？也許。

Our next question today is coming from Aaron Rakers from Wells Fargo.

我們今天的下一個問題來自富國銀行的 Aaron Rakers。

I have 2 as well, if I can. I wanted to go into the semi-custom segment, and we've talked about kind of an elongated or near the end of the life from some of these gaming platforms. I'm just kind of curious as how you guys think about that piece of the business as we start to look into 2019? And is there a point in time where we can start to kind of think about product cycles as driving reacceleration of growth in that segment?

如果可以的話，我也有 2 個。我想進入半客製化領域，我們已經討論過一些遊戲平台的壽命延長或接近尾聲。我只是有點好奇，當我們開始展望 2019 年時，你們是如何看待這部分的業務？我們是否可以開始思考產品週期如何推動該領域的成長再加速？

Yes, sure. So again, without commenting on any specific design wins, what I would say is in 2019, we will be in the seventh year of the game console cycle. And so we do expect it to be down. And if you look at the cycles, you'll see that it's very consistent with previous cycles. When we look forward, when I look at what happens beyond 2019, I like our semi-custom business. I think it's a good business for us. I think it continues to be a place where we differentiate ourselves because of our ability to customize for various customers. And I do see it growing again beyond 2019, and it will continue to be an important part of our business.

是的，當然。因此，再次聲明，我不會對任何具體的設計勝利發表評論，我想說的是，2019 年，我們將進入遊戲機週期的第七年。因此我們確實預計它會下降。如果你觀察一下這些週期，你會發現它與之前的週期非常一致。當我們展望未來，當我展望 2019 年以後會發生什麼時，我喜歡我們的半客製化業務。我認為這對我們來說是一筆好生意。我認為這是我們與眾不同的地方，因為我們有能力為不同的客戶進行客製化。我確實看到它在 2019 年以後會再次成長，並且它將繼續成為我們業務的重要組成部分。

Okay. And then on the channel inventory dynamic, there's a lot of kind of moving parts right now in the market. And we've seen, obviously, with the U.S.-China tariff situation, there's then some questions around demand pull-forward or any kind of element around the tariff situation that's impacted demand. I'm just curious, have you seen anything from your customers that have suggested that there's any -- been any kind of sort of demand pull-forward and any effects on your business as it relates to U.S.-China especially as we start to look into next year, the potential for increased tariffs further?

好的。然後就通路庫存動態而言，目前市面上有許多活動部件。顯然，我們已經看到，隨著中美關稅情勢的出現，人們對需求提前或任何與關稅狀況相關的因素是否影響了需求產生了一些疑問。我只是好奇，您是否從客戶那裡看到任何跡象表明存在任何需求提前，以及這對您的業務有任何影響，因為這與中美貿易有關，特別是當我們開始研究明年進一步提高關稅的可能性時？

Yes. So we're monitoring the tariff situation very closely. There's a lot of activity around that. I would say from what we see today, we don't see anything material as it relates to the tariffs, whether it's pull-ins or just the overall impact of tariffs. But we are doing quite a bit to adjust our supply chain, as I'm sure many others are. So we already had a supply chain that was highly multi-sourced, and so that's very helpful. And we're adjusting our supply chain to ensure that we have further options such that the tariffs are not a significant impact on our business.

是的。因此，我們正在密切關注關稅情況。圍繞這一問題有很多活動。我想說，從我們今天看到的情況來看，我們沒有看到與關稅相關的任何實質內容，無論是拉動還是關稅的整體影響。但我們正在做大量工作來調整我們的供應鏈，我相信許多其他人也這樣做。因此，我們已經擁有高度多來源的供應鏈，這非常有幫助。我們正在調整我們的供應鏈，以確保我們有更多選擇，使關稅不會對我們的業務產生重大影響。

Our next question is coming from Harlan Sur from JPMorgan.

下一個問題來自摩根大通的 Harlan Sur。

On the weakness in the channel-based GPUs, I'm just wondering if some of the weakness is due to the gaming bans in China. It looks like China is hindering the introduction of new games, but I'm not sure if it's impacting actual GPU sales and sort of the enthusiast gamers' motivation to kind of move up the stack?

關於基於頻道的 GPU 的弱點，我只是想知道部分弱點是否是由於中國的遊戲禁令造成的。看起來中國正在阻礙新遊戲的推出，但我不確定這是否會影響實際的 GPU 銷售以及遊戲愛好者升級的動力？

I don't think we see that specifically, Harlan. I think what we're seeing is more -- just we had very strong demand in the first half of this year. And as the supply chain build up, we're just seeing some excess inventory that needs to be worked through right now. We're not seeing anything specific relative to that China issue you mentioned.

哈蘭，我認為我們並沒有特別看到這一點。我認為我們看到的是——今年上半年我們的需求非常強勁。隨著供應鏈的建立，我們看到一些需要立即處理的過剩庫存。我們沒有看到與您提到的中國問題相​​關的任何具體資訊。

Great. Thanks for the insight there. And then on the Wafer Supply Agreement with GLOBALFOUNDRIES, now that they're not going to be supporting 7-nanometer, you'll be moving, I think, most of your 7-nanometer client products to TSMC, and as of right now, I think you guys still need to pay them a fee for every 7-nanometer product you produce at TSMC, can you just give us an update on the new Wafer Supply Agreement that doesn't include 7-nanometers? Obviously, this should be beneficial for your gross margins.

偉大的。感謝您的見解。然後關於與格芯的晶圓供應協議，既然他們現在不再支援 7 奈米，我認為你們會將大部分 7 奈米客戶產品轉移到台積電，截至目前，我認為你們仍然需要為在台積電生產的每件 7 奈米產品向他們支付費用，您能否向我們介紹一下不包含 7 奈米的新晶圓供應協議的最新情況？顯然，這對您的毛利率有利。

Yes. So look, GLOBALFOUNDRIES is a good partner. They continue to be a very important partner for us. We are in discussions with them about how to update our agreement post their strategy updates. And we're making good progress on that. So we'll give you more detail as we get closer. But overall, they -- GLOBALFOUNDRIES continues to be an important partner for us.

是的。所以看起來，GLOBALFOUNDRIES是一個很好的合作夥伴。他們仍然是我們非常重要的合作夥伴。我們正在與他們討論如何根據他們的策略更新來更新我們的協議。我們在這方面取得了良好的進展。因此，隨著時間臨近，我們會向您提供更多詳細資訊。但總的來說，GLOBALFOUNDRIES 仍然是我們的重要合作夥伴。

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。

Just a question to follow up on that THATIC, the $86 million. My understanding is you had original agreement, you were getting an OpEx off that, and then eventually, if there was product revenue, you'd recognize that revenue with your portion of your ownership on those wafers. So I'm just kind of curious, what's this $86 million? Is it additional IP? And any color on as to what it's for, if possible.

我只是想問一下關於 THATIC，也就是 8600 萬美元的問題。我的理解是，你有原始協議，你會從中獲得營運支出，然後最終，如果有產品收入，你會根據你對這些晶圓的所有權份額來確認該收入。所以我只是有點好奇，這 8600 萬美元是什麼？是附加IP嗎？如果可能的話，請說明其用途。

Yes, Blayne. So it is related to some additional IP with THATIC. And we've completed some technology milestones in this past quarter, and so that's what that was.

是的，布萊恩。因此它與 THATIC 的一些附加 IP 相關。我們在上個季度完成了一些技術里程碑，就是這樣。

Got you. And then I want to ask you -- it's well known that there is graphics inventory. You mentioned that graphics pricing was down. I'm just kind of curious of your expectation for that discounting as we get into the end of the year here. What have you seen and what are you expecting as you look into December?

明白了。然後我想問你——眾所周知，有圖形庫存。您提到圖形價格下降了。我只是有點好奇，隨著年底的到來，您對折扣的預期是什麼。展望 12 月，您看到了什麼？又期待什麼？

Yes. We're not expecting any significant changes from an ASP standpoint if that's what you're asking. I think what we see is the inventory just has to be worked through, and it's working through the system.

是的。如果您問的是這個，那麼從 ASP 的角度來看，我們並不期望有任何重大變化。我認為我們看到的是庫存必須處理，並且正在透過系統進行處理。

Our final question is coming from Toshiya Hari from Goldman Sachs.

我們的最後一個問題來自高盛的 Toshiya Hari。

I did join a little bit late. So I do apologize if you addressed this. Lisa, I just had a question on the client CPU business and how you think about market share versus profitability going forward. Given some of the shortages near term, I'm sure you have the opportunity to pick up share if you wanted to but perhaps at a lower gross margin. So as you think about the client business over the next year or 2, how do you balance market share versus profitability?

我確實加入得有點晚了。因此，如果您提到了這一點，我深表歉意。Lisa，我只是想問一下客戶端 CPU 業務以及您如何看待未來的市場份額與盈利能力。考慮到近期的一些短缺，我相信如果你願意的話，你有機會獲得市場份額，但毛利率可能會較低。那麼，當您考慮未來一兩年的客戶業務時，您如何平衡市場份額和盈利能力？

Sure, so the client business is a good business for us from a margin standpoint. And as we look forward, we look at it as an end-to-end portfolio. So -- and we really do have an end-to-end portfolio across notebook and desktop. And our goal is continue to improve the profitability of that business.

當然，從利潤的角度來看，客戶業務對我們來說是一項好業務。展望未來，我們將其視為端到端的投資組合。所以——我們確實擁有涵蓋筆記型電腦和桌上型電腦的端到端產品組合。我們的目標是繼續提高該業務的獲利能力。

As it relates to unit share, I think unit share is certainly important. We look at revenue growth overall as important for that business, but I believe we'll be able to do that at good margins and continue on our margin path.

就單位份額而言，我認為單位份額當然很重要。我們認為整體營收成長對該業務至關重要，但我相信我們能夠以良好的利潤率做到這一點，並繼續保持我們的利潤率成長路徑。

Thank you. 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.

謝謝。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 very much for joining our conference call today, everyone. This does conclude our call.

非常感謝大家今天參加我們的電話會議。我們的通話到此結束。

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。