Thank you, Mitch, and good afternoon to all those listening in today.
We executed well in the second quarter, launching multiple leadership products, significantly expanding our AI engagements, and ramping our latest Zen 4, EPYC, and Ryzen product families. Second quarter revenue declined 18% year-over-year, to $5.4 billion. Sales were flat sequentially as Client and Datacenter segment growth was offset by expected declines in our Gaming and Embedded Segments. AI cluster engagements grew by more than seven times sequentially as multiple customers initiated or expanded programs supporting future deployments of Instinct MI250 and MI300 hardware and software at scale. Looking at the second quarter business results, Datacenter segment revenue, of $1.3 billion was down 11% year-over-year, and up 2% sequentially. Although market demand remains mixed, the 4th Gen EPYC CPU adoption accelerated in the quarter, with revenue nearly doubling sequentially as cloud provided expanded deployments to power their internal infrastructure and public instance offerings.
In cloud, 30 new AMD instances launched in the second quarter, with multiple Genoa instances announced by AWS, Alibaba, Microsoft, and Oracle. Genoa delivers up to 1.9 times more performance in enterprise and cloud applications, and 1.8 times more performance per watt than the competition, making it, by far, the industry's higher performance and most efficient server processor. As an example, AWS announced its M7a Genoa instance, which is the highest performance and best price-performance general purpose x86 instance they offer. In total, there are now more than 670 AMD-powered cloud instances publicly available, and we expect that number to grow 30%, to nearly 900 by the end of the year, driven largely by new Genoa deployments. We also expanded our Zen 4 server product portfolio in the quarter with the launches of Bergamo and Genoa-X. Microsoft Azure announced the first Genoa-X HPC instances that offer more than five times higher performance in technical computing workloads compared to their prior generation. With Bergamo, we deliver more than double the performance than competitive offerings for cloud-native applications, while offering full x86 software compatibility. We were excited to be joined at our launch event by Meta, where they announced plans to deploy Bergamo broadly across their global datacenter infrastructure to power applications, including Facebook, Instagram, and WhatsApp. Looking ahead, Dell, HPE, Lenovo, Supermicro, and other large server providers are on track to begin launching their new Bergamo platforms in the third quarter.
In enterprise, while macroeconomic uncertainty resulted in weaker customer demand year-over-year, sales of EPYC processors for enterprise servers grew sequentially as we closed multiple wins with large energy, technology, financial services, and healthcare companies. Overall, pull from large enterprises continued to grow. For example, Banco de Brasil, BNP Paribas, Petronas, Uber, and other large enterprises, all adopted EPYC processors in the quarter. And SAP selected EPYC processors to power RISE with SAP applications hosted on Google Cloud. We expect EPYC revenue to grow by a double-digit percentage sequentially in the third quarter, led by the expanding 4th Gen EPYC CPU ramp. In addition, Siena, our first EPYC processor optimized for leadership, Edge server, and teleco infrastructure is on track to launch this quarter. Turning to our broader Datacenter business, in networking, the largest cloud providers expanded their adoption of Pensando DPUs in the quarter, highlighted by new deployments with Alibaba and Oracle Cloud.
In supercomputing, EPYC and Instinct processors continue to be the solutions of choice for the most powerful supercomputers in the world, powering 121 of the fastest systems on the latest top-500 list, and seven of the 10 most efficient systems on the Green500 list. In AI, we made strong progress in the second quarter as we met key hardware and software milestones to address the growing customer pull for our datacenter AI solutions. Our AI strategy is focused on three areas. First, deliver a broad portfolio and multi-generation roadmap of leadership GPUs, CPUs, and adaptive computing solutions for AI inferencing. Second, expend the open and proven software platform we have established that enables our AI hardware to be deployed broadly and easily. And third, expand the deep and collaborative partnerships we have established across the ecosystem to accelerate deployments of AMD-based AI solutions at scale.
We delivered on all three fronts in the second quarter. On the software and partnership side, Hugging Face announced plans to optimize thousands of their models for AMD Instinct, Ryzen, EPYC, Radeon, Versal, and Alveo platforms. To make it easier for developers to tap into the full performance and features of our AI hardware, we delivered a significant performance and feature update in our latest ROCm software, and expanded support for AMD silicon across the leading frameworks, including PyTorch, TensorFlow, Onyx, and technologies like OpenAI Triton. We are receiving positive feedback on the improvements and the new capabilities of our latest ROCm software stack from our AI customers and ecosystem partners. As an example, leading AI software company, MosaicML, recently highlighted that our Instinct MI250 accelerator delivers competitive training performance with minimal or no changes to the underlying AI software. On the hardware side, we announced our new Instinct MI300X GPUs designed to be the world's most advanced accelerators for generative AI. MI300X combines our next-gen CDNA 3 architecture with the industry's largest memory footprint and fastest memory bandwidth. These are critical factors in AI inferencing performance. Customer interest in our Instinct MI300A and MI300X GPUs is very high.
Engagements with top-tier cloud providers, large enterprises, and numerous leading AI companies significantly expanded in the quarter. We are providing early system access and sampling both products with our lead AI, HPC, and cloud customers now, and remain on track to launch and ramp production in the fourth quarter.
Turning to our Client segment, revenue declined 54% year-over-year to $1 billion. Client segment revenue increased 35% sequentially as Ryzen 7000 series CPU sales grew significantly, led by the launches of new notebooks from the largest OEMs. We also launched new commercial offerings with our first Ryzen Pro notebook and desktop processors powered by our leadership Zen 4. More than 100 AMD-powered commercial PC platforms are on track to launch this year from HP, Lenovo, and other leading OEMs as we grow this important part of our client business. We expect our Client segment will grow in the seasonally stronger second-half of the year based on the strength of our product portfolio and increased adoption of our Ryzen 7000 CPUs, including the ramp of our Ryzen 7040 mobile CPUs that deliver leadership performance and energy efficiency, and are the industry's first x86 processors with a dedicated AI engine. Going forward, we see AI as a significant PC demand driver as Microsoft and other large software providers incorporate generative AI into their offerings. We are executing a multi-generational rise in AI processor roadmap which, together with our ecosystem partners, will fundamentally change the PC experience.
Now, turning to our Gaming segment, revenue declined 4% year-over-year to $1.6 billion as higher semi-custom revenue was more than offset by lower gaming graphic sales. Sequentially, segment revenue declined 10%.
Semi-custom SoC sales were strong in the quarter as Microsoft and Sony had healthy console demand based on improved retail availability globally, and the launches of new AAA games. In gaming graphics, we expanded our Radeon 7000 GPU series in the second quarter with the launch of our mainstream RX 7600 cards for 1080p gaming. We are on track to further expand our RDNA 3 GPU offerings with the launch of new, enthusiast-class Radeon 7000 series cards in the third quarter. Turning to our Embedded segment, revenue increased 16% year-over-year to $1.5 billion.
Sequentially, revenue declined 7% as solid demand with industrial, vision and healthcare, automotive, and broadcast customers was offset by softness with communications customers as some operators slowed their infrastructure upgrades. We expanded our leadership adaptive computing product portfolio in the quarter, launching our new Versal Premium VP1902 adaptive SoC with advanced chiplet packaging, the industry's largest and most performance solution for emulating and verifying next generation ASICs and SoCs. In the low end, we announced our Spartan UltraScale+ FPGA family to address a new range of cost optimized, industrial, computer vision, healthcare and robotics applications. We also released enhanced versions of our Vivado and Vitis software platforms that make it easier for customers to develop highly performant applications for our Versal Adaptive SoCs. Embedded CPU sales grew in the quarter with the launches of new AMD powered security, storage and networking solutions from HPE, Fortinet and other leading vendors.
Looking into the second-half of the year, after delivering six quarters of very strong year-over-year growth, we expect Embedded segment revenue to decline in the back-half of the year as lead times normalize and some customers reduce their inventory levels. We continue to be very pleased with our embedded design win momentum and in particular, the growing revenue synergy opportunities we see based on our combined adaptive and embedded processing product portfolio. In summary, we executed well in the quarter against our strategic priorities. Looking at the second-half of the year, we expect the PC market to grow seasonally with more normalized inventory levels across the supply chain. In the datacenter market, we see a mixed environment as AI deployments are expanding. However, cloud customers continue optimizing their datacenter compute and enterprise customers remain cautious with new deployments. Against this backdrop, we expect strong growth driven by higher fourth gen EPYC and Ryzen 7000 processor sales and initial shipments of our Instinct MI300 accelerators in the fourth quarter. Longer term, while we are still in the very early days of the new era of AI, it is clear that AI represents a multibillion dollar growth opportunity for AMD across cloud, edge and an increasingly diverse number of intelligent endpoints. In the datacenter alone, we expect the market for AI accelerators to reach over $150 billion by 2027. We have increased our AI related R&D, ecosystem enablement and go-to-market investments to capture a significant share of this emerging market. The strong progress we are making executing our AI roadmaps and the rapid pace at which we are expanding our ecosystem of AI hardware and software partners makes us very confident we can deliver leadership, training and inference solutions powered by our instinct EPYC, Ryzen AI, Versal and Alveo platforms for our customers and partners. Now I'd like to turn the call over to Jean to provide additional color on our second quarter results and our outlook for Q3, Jean?