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AMD CEO Lisa Su asserted in an interview with CNBC earlier today that her firm is in a strong position heading into the year's second half. AMD's second quarter earnings report, released yesterday, sent the shares down by 5% in premarket trading today as the firm posted a GAAP operating loss and disappointed investors with its data center division. However, Su believes that the data center division is performing well and AMD is looking at good forecasts from its customers.
AMD CEO Points At Importance Of Global Semiconductor Supply Chain While Discussing US Manufacturing Push
Su believes that AMD is "coming off a very strong first half" and a "very strong first quarter" with a guide indicating a "very strong second half" as well. AMD suffered from an operating income drop in the second quarter due to US sanctions on its GPU sales to China. Commenting on the restrictions, Su highlighted that her firm was working closely with the Trump administration regarding its AI chip proliferation. She added that while the license approvals are being processed, they have not yet been granted.
The AMD CEO is excited about the year's second half as she expects 28% growth in the coming quarter with 13% sequential growth. Shifting gears to AI, Su outlined that her firm is in the midst "of a tremendous AI opportunity." According to the CEO, AMD's AI revenue opportunity continues to be tens of billions of dollars.
As for the data center business, Su shared that "I would say that our DC business is doing extremely well," and added that not only is her firm a key player in the high-performance computing industry, but it is also "seeing good forward-looking forecasts from our customers."
"I think the data center business is the main driver of our growth," said Su, with AMD's goals aiming to become "the computing foundation for the largest hyperscalers" and benefiting from AI companies investing significantly in compute.
The conversation then shifted to US domestic chip production and how much money AMD would have to lose or spend in order to source its chips domestically. On this front, while Su noted that AMD's"very supportive of manufacturing in the US" and that "it's good for" the firm "to have resiliency," she added that the chip supply chain is a global supply chain which requires time to diversify away from as AMD needs to access all of it in the short term. She also noted that AMD is "actively moving some of chips to US in Arizona."
Circling back to the data center business, Su asserted that AMD is gaining significant share in the industry as evidenced by its 33 quarters of consecutive year-over-year growth in the server market. Customers want "reliable, high-performance, cost-effective chips," she added.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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