In a recent statement, Lisa Su, the Chair and CEO of Advanced Micro Devices Inc. (AMD), expressed her enthusiasm over the growing customer engagement in the AI sector, which has resulted in increased sales for the company. Speaking at Goldman Sachs’ Communacopia + Technology investor conference in San Francisco, Su mentioned that interest in AMD’s AI data-center hardware has surpassed expectations.
Su noted that within the past 30 days, customer engagements have seen a significant acceleration, with many of these engagements translating into firm customer commitments. This positive trend indicates a promising second half of the year for AMD’s data-center business.
Following Su’s remarks, AMD’s stock shares experienced a notable uptick. Initially trading at a slight loss around $109, the shares rose by as much as 2% to reach an intraday high of $111.45. By the end of the conference presentation, the shares had settled with a modest increase of less than 1%.
Overall, AMD’s CEO Lisa Su remains highly optimistic about the company’s future in the AI market, as growing customer engagement continues to drive sales and propel its data-center business forward.
AMD’s Future in the AI Chip Market
In the recent earnings report of AMD, it was noted that their data-center numbers have declined compared to the previous year. However, it is worth mentioning that the company did not include sales from their AI chips in these results. This is in contrast to both Nvidia and AMD who have introduced new AI chips in March and July respectively.
The CEO of AMD, Lisa Su, addressed concerns about the potential implications of geopolitical tensions and bans on selling AI technology to China. She stated that China has the potential to contribute around 20% to 25% of the company’s revenue. This indicates the significance AMD places on the Chinese market and their intention to continue investing in it.
On the other hand, Nvidia reported impressive earnings in late August, surpassing Wall Street estimates for data-center sales by over $2 billion. Additionally, Nvidia provided a positive outlook for the third quarter, with a revenue projection exceeding $3 billion. These results were driven by the successful launch of their new generation of AI data-center chips.
It is essential to note that AMD shares have experienced a significant increase of over 70% year-to-date. Meanwhile, Nvidia shares soared by more than 230%. In comparison, the PHLX Semiconductor Index (SOX) saw a surge of 46%, the S&P 500 (SPX) rose 17%, and the tech-heavy Nasdaq Composite (COMP) gained 34% during the same period.
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