AMD first take: The company's data this quarter is decent, but it did not provide guidance that exceeded expectations.

AMD's revenue and gross margin both improved this quarter, mainly driven by a recovery in the data center and client businesses. On the operating expense side, the company's research and development, as well as sales and related expenses, remained relatively stable overall. This quarter, the company's core operating profit returned to over $1 billion, indicating that overall performance has emerged from the trough.

Regarding the two core businesses, specifically: 1) Client business: This quarter achieved 1.881 billion yuan, a growth of 29.5%. Considering the single-digit growth in the PC industry, Dolphin believes that the company further squeezed Intel this quarter, gaining a larger market share; 2) Data center business: Set a new record, reaching 3.55 billion yuan, mainly benefiting from strong sales of the Instinct series GPUs and EPYC (Xiaolong) series CPUs, which suggests that core cloud vendors overall still maintain high capital expenditures this quarter.

Although the revenue and profit data this quarter are decent, the company did not provide guidance that exceeded expectations. For the next quarter, the company expects revenue of $7.2-7.8 billion for Q4 2024 (market expectation is $7.55 billion) and a non-GAAP gross margin of around 54% (market expectation is 54.21%). Both figures are basically in line with market expectations, which has somewhat affected market confidence in the company and the AI industry chain. For specific details about the company's business situation and its outlook on AI, one can pay attention to the company's specific explanations during the conference call.