AMD CEO Lisa Su on AI Accelerators, PC Demand, and China Business

Strong Performance Across AMD Businesses

• 🚀 AMD's CEO Lisa Su highlighted strong performance in the first half of the year, with Q2 revenue up 32% year-over-year and a Q3 guidance of 28% growth.
• 💡 The data center business is performing exceptionally well, with server CPUs gaining share in cloud and enterprise, and AI investments driving both GPU and CPU revenue.
• 📈 PC and gaming segments are also showing strength, with products well-positioned for both consumer and commercial markets.
• 🌱 The embedded business is expected to return to growth in the second half of the year.

AI Accelerator Growth and Roadmap

• ⚡ AMD's AI accelerator business is projected to grow to tens of billions of dollars, driven by strong demand from hyperscalers.
• 🎯 The recently launched MI355 product is highly competitive, offering a strong total cost of ownership for inferencing and training workloads.
• 🗓️ AMD is on an annual roadmap cadence, with the MI400 series planned for next year, offering full rack-level solutions.
• 💰 The total addressable market (TAM) for AI accelerators in the data center is over $500 billion in the next few years, and AMD expects to capture a significant portion.

Navigating the China Market and Tariffs

• ⚠️ Concerns about the China business were noted, with AMD not including China revenue in Q3 guidance due to ongoing license reviews with the US government.
• ✅ There has been an improvement in discussions with the US government over the last 90 days, with a focus on balancing national security and AI technology proliferation.
• 🔄 AMD expects to restart its supply chain and ship products to China once licenses are approved, though exact timing is dependent on government review.
• 📊 Despite challenges, the overall demand for AMD's products in the second half of the year is stronger than anticipated.

Competitive Landscape and Market Share

• 🔍 AMD is closely monitoring the competitive environment, including domestic Chinese chip makers, but remains confident in its overall roadmap and competitiveness.
• 📈 The company sees both general demand rebound and market share gains in its server and client CPU segments due to its leadership products.
• 🤝 AMD aims to be an indispensable partner to major customers like OpenAI, focusing on execution, delivering total cost of ownership, and reliability.
• 🎮 While gaming and consoles are strong, AI represents the key area for future margins and strategic importance.