Take a look at the interesting interview between the interviewer Blayne Curtis and Ruth Cotter who is AMD’s Senior Vice President from the Marketing department.
Blayne Curtis is a semiconductor analyst at Barclays and from the company, it’s Ruth Cotter who plays a very vital role in the company as she’s SVP of Marketing, Human Resources and IR.
Blayne started the interview by asking the broader variant of question that went like-
” obviously, it’s been a fantastic year for AMD. You’re growing 65% share gains in client CPUs, robust growth in servers in semi-custom. You accelerated through the year. Your original guidance was 37%. So maybe just kind of a starting point, just perspective on what went right for you this year. Has anything surprised you negatively? Obviously, a challenging backdrop but you’ve done quite well. And then, just a perspective on kind of the drivers for growth going forward? “
Ruth Cotter initiated her reply by firstly presenting her gratitude towards the interviewer for her warm introduction and then she said that, yes, 2021 has been a fantastic year for the company on a number of fronts, including revenue growth, as Blayne mentioned.
They were on course to grow revenue by more than 60% in the present year, compared to 40%+ of the previous year, while maintaining a healthy gross margin and generating considerable free cash flow.
So it had been a terrific year for them in terms of watching all of their businesses hit their stride and the strength of their product roadmap shine through. Cotter also said that she thought it was exemplified in the present year in terms of client preference for AMD products.
So, if somebody looks at the PC market, the Ryzen portfolio obviously has a lot of traction in both desktop and laptops, with an emphasis on revenue share growth. Cotter appreciated them by referring to them as wonderful partners for them when it was about the depth and breadth of platform availability across their leading OEMs.
The Radeon brand is known for its graphical capabilities. They have relaunched new goods there earlier in the present year, reinvigorating competition as they consider expanding the whole suite of products available there.
And, of course, gaming has seen a significant increase in popularity over the previous year, which they have been able to take advantage of. Then there’s the data centre, which she knew a lot of folks are thinking about as they move forward with their EPYC road plan to their third generation of devices.
Also, a good mix of cloud and corporate business. With the latest generation of offerings, they’ve been strengthening those bonds. Then, on the GPU side, they have their CDNA 2 architecture in the data center. With their data centre GPUs, they’ve had some success in the exascale arena as well as other more general-purpose successes.
Ruth Cotter on partnership with popular brands:
Cotter told the interviewer that there’s their semi-custom business on top of it all. Working consoles have performed admirably. Again, they have a multiyear, intergenerational road map partnership with Sony and Microsoft, and they’re clearly extremely delighted to be associated with such iconic brands.
So, on many levels, she said it came together. It was also a year in which no single product, market, or company dominated. Cotter believes that their ability to lead in terms of consistent execution across each of their companies stems from the discipline that they’ve placed into their intergenerational road map, as well as the building and deepening of customer connections. The present year’s exhibition has undoubtedly been seen by everyone.
Taking over this, Blayne Curtis asked Cotter that, seeing their growth in servers and semi-custom, Cotter believes that they might grow in PCs, but as a fact, nobody knows what the market is going to do, to which Cotter agreed.
Blayne’s next question was, ” So if you look at ’21, I would say, ’20 gained a lot of shares. In ’21, I think Intel kind of pounced back probably a lot of the learning from home and Chromebooks and such. I think as you look into next year, people are expecting enterprise to be the bigger component. So do you feel like you can still gain share in that backdrop? And I think maybe just think about why did the share gains slow a little bit? And kind of what’s your confidence in continuing to grow client share? “
To this Cotter replied, yes to the question and further said that as they approach into next year, their Ryzen portfolio is well-proliferated, with over 200 systems targeted. They’ll be around 150 people this year.
If someone looks at the last year, they’ve constantly increased their revenue share. She talked about PCs in particular and said that they’ve collaborated with several of the OEMs as they consider where they want to focus some of the match sets and that has worked out for them in a way that very much lined up with their concentration on the PC business which is stretching it branches to the premium segments of market like premium consumer enterprise or gaming.
Cotter said that pandemic brought a transition that took our working and playing into the virtual world from reality. That transformation, she believed, aided and encouraged PCs, and they were able to take advantage of it because it had always been their aim and strategy to grow into the higher segments of the market.
She further said that It’s a multitasking environment that necessitates both great performance and enhanced graphics capability. And, in terms of being able to service that market, AMD is extremely uniquely and well positioned in that arena, with both their CPU and GPU architecture. As a result, they’re happy.
As the interview proceeded forward Cotter talked about AMD’s marketing team and said that she was really proud of the marketing team and their CMO, and the team’s leadership have been instrumental in developing the Ryzen brand, especially in the last 24 months, and AMD’s popularity has grown.
Cotter on AMD’s Client GPU:
Further, when Cotter was asked about client GPU she replied that, they announced their RDNA 2 architecture earlier this year, and they’re bringing that down through their Radeon product line of — set of products, and they’re clearly doing well in the enthusiast sector and they’re confident in the long-term strategy devised by their brilliant hardware and software developers.
Further on the same topic Cotter said that it’s not just discrete GPUs in the gaming industry, but also broader proliferation, whether it’s expanding their graphics capacity into the semi-custom business, but also very complimentary in their client PC business, and then obviously further beyond with the Instinct product range in the data centre.
Ruth Cotter: AMD’s machine learning :
Cotter’s say about AMD’s machine learning was that, they’re very focused on machine learning, artificial intelligence, and HPC workloads in general, and how they can continue to lean in while leveraging their leadership architecture and also bringing together the opportunities that they offer in terms of bringing together both our CPUs and GPUs, our interconnect capability, and making sure that those combined resources are as efficient as possible as they continue to drive significant e-commerce growth.
Then, when exascale falls into HPC and, over time, into high-performance mainstream computing, they expect it to become increasingly widespread. However, they continue to lean in heavily in the meanwhile. It’s not just about the technology. Clearly, they’ve been investing heavily in software to ensure that they have the necessary applications and libraries to help their clients get where they want to go.
When Blayne asked Cotter about AMD’s servers, she replied, they’re obviously quite thrilled about the server industry and will continue to be so. Their EPYC portfolio has gotten a lot of traction and customer preference, to the point where they’ve been able to create record revenue in that area of the market for the last six quarters.
So, obviously, with leadership OEMs like Dell, HPE, and Lenovo, they’re doing extremely well in terms of platform competency. They’re working closely with them and learning about their customers’ demands so that it’s mirrored effectively across their EPYC portfolio.
The data centre is becoming more compute-heavy all of the time. And when it comes to combining specialized methods, whether it’s on hardware or software, connectivity, packaging, process technologies, or sort of new technologies as they consider the prospects to combine CPUs and GPUs, AMD is the supplier of choice.
And they believe that, that will not only help them grow their market share, but it will also allow them to expand their platform availability and capability with their enterprise partners and scale more broadly across Fortune 1000 customers.
Lastly, Blayne asked Cotter, ” You mentioned your excitement of adding the Xilinx portion into the fold. The FTC is filing suit over NVIDIA and ARM. Do you think that’s more of a one-off? And is that going to see a lot more scrutiny than other deals and including yours? Kind of what gives you that confidence?
To this question, Cotter replied that they’re delighted with the overall progress of the acquisition and integration preparations. And she’s assisting in the planning of our merger, So she live and breathe this every day, and she had the opportunity of working closely with the Xilinx team as they prepared for Day 1 and secured three of the Big Four, for lack of a better term, and they’re still on pace in China.
Final words of the interview by Ruth Cotter :
Cotter ended the interview by extending her reply on the same question, and that was, In a wider form it is just the overall promise of the acquisition and their vision as they think about adding not only Xilinx’s leadership, technology, and capability as it relates to hardware to their portfolio, but they also have some software capability that they’re quite excited about, particularly in the AI space, as they think about some of their additional IP there and what that can bring to their overall portfolio but also opening up the aperture in terms of additional markets that Xilinx obviously has.