To The Moon

$美国超微公司(AMD)$  Everything you need to know about $AMD before today's Q4 earnings, in 8 bullet points:

1. $AMD's ascent over the past decade can be attributed to its bold bet on chiplets, a revolutionary approach to semiconductor design that stands in stark contrast to the monolithic approach favored by industry giants like $NVDA. By breaking down complex chips into smaller, interconnected modules, $AMD has managed to achieve higher yields, improved performance, and reduced costs, paving the way for its resurgence in the semiconductor market.

2. As Moore's Law nears its limits, manufacturing increasingly complex monolithic chips has become increasingly challenging. Chiplets offer a viable solution to this challenge, enabling $AMD to continue pushing the boundaries of chip design while maintaining cost-effectiveness. $AMD's early adoption of chiplet technology has placed it at a significant advantage, as other industry players are only now catching up.

3. $AMD's success extends beyond its technological prowess; it is also a testament to its exceptional organizational culture. Under the leadership of Lisa Su, $AMD has fostered a collaborative and empowering environment where employees feel deeply connected to the company's mission. This culture of transparency and accountability has fueled innovation and driven the company's growth.

4. $AMD's acquisition of Xilinx, the world's leading provider of FPGAs, further strengthens its position in the semiconductor landscape. FPGAs, unlike traditional ASICs, can adapt their structure on the fly to accommodate specific computational tasks, offering immense potential for efficient and adaptable computing. This acquisition will enable $AMD to integrate AI acceleration into all of its products, significantly enhancing their capabilities.

5. The acquisition of Pensando, a pioneer in stateful datacenters, complements $AMD's strategic approach. Stateful datacenters maintain a detailed record of their current state, enabling the creation of AI models that can optimize datacenter operations. Pensando's expertise in this domain will provide $AMD with the tools to build intelligent and adaptable datacenter solutions, ultimately providing customers with the environments required for $AMD's products to perform optimally.

6. Combining the strengths of Xilinx and Pensando, $AMD has crafted a highly differentiated roadmap that sets it apart from its rivals. $AMD's Infinity Fabric technology, honed through its chiplet development, excels at connecting disparate computing engines, providing a powerful foundation for future innovation. This adaptability will enable $AMD to fill specific market niches that others cannot reach, which I believe will increase margins going forward.

7. $AMD is now extending its chiplet expertise to the GPU market, a domain dominated by $NVDA. While $NVDA focuses on building ever-larger, more powerful GPUs, $AMD is employing its proven strategy of innovation from below. With its strong organizational foundation and chiplet mastery, $AMD is poised to challenge $NVDA's dominance in the GPU arena. While $NVDA holds a strong software moat, $AMD's gains in GPU market share could translate into significant returns for its shareholders.

8. In the company's Q3 earnings call, Lisa Su highlighted $AMD's significant progress in the Datacenter GPU business, citing substantial customer interest in its next-generation MI300 chip. She also reiterated $AMD's previous guidance for Q4 2023, projecting $400 million in Datacenter GPU revenue, representing a 50% quarter-over-quarter growth. Moreover, she projected over $2 billion in Datacenter GPU revenue for FY2024. $AMD's Q4 earnings will be a crucial indicator of its continued momentum in the Datacenter GPU market.