Any longs who listened to the CC after ER today should be shitting in their pants. They danced around the decline in data center CPUS and could not give a straight answer. This is the most profitable and fastest growing chip segment. INTC just reported a beat of 800 million in this segment in the last quarter. Linked article is spot on.
"executives declined to break down exactly how much of the segment and the forecast was from the gaming chips and how much was from server chips, and what AMD executives did say about the data-center business was not very specific.
“In server, revenue grew by a strong double-digit percentage as unit shipments and ASPs increased sequentially, driven by demand for our second-gen Epyc processors,” AMD Chief Executive Lisa Su said at the beginning of Tuesday’s conference call.
In the call with analysts, it was clear that there was a lot of frustration with AMD combining these two seemingly disparate businesses. Wall Street analysts tried various tactics to ascertain more data on how steep the decline in semi-custom actually was and how its profit margins were impacting AMD’s overall gross profit margin, but largely received vague statements in response."