AMD CEO Lisa Su on AI Forecast, China Market, and Chip Demand

AMD's Strong Financial Performance

• 🚀 AMD's second quarter revenue grew 32% year-over-year, with a projected 28% growth for the third quarter, indicating strong overall business performance.
• 💡 The data center business is performing exceptionally well, with server CPUs gaining share in cloud and enterprise markets.
• 🧠 AI investments from hyperscalers are driving demand for both GPU and CPU revenue, as agentic AI requires significant compute power.
• 📈 PC and gaming segments are also showing strength, with AMD 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 Outlook and Roadmap

• ⚡ AMD's AI accelerator business is projected to grow into the tens of billions, driven by new products like the MI355 launched in June.
• 🎯 The MI355 is highly competitive in total cost of ownership for inferencing and training workloads, contributing to second-half growth.
• 🗺️ AMD has accelerated its roadmap with an annual cadence, planning the MI400 series for next year, offering full rack-level solutions.
• 💰 The total addressable market (TAM) for AI accelerators in data centers is estimated to exceed $500 billion over the next few years.

Navigating the China Market and Licenses

• ⚠️ Discussions with the US government regarding licenses for shipping to China are ongoing, with indications of progress.
• ⚖️ The US Department of Commerce is seeking a balance between national security and global AI technology proliferation.
• 🚫 AMD has not included China-specific AI accelerator revenue in its third-quarter projections due to the uncertainty of license approvals.
• 📦 AMD expects to restart its supply chain and ship products to China once licenses are approved, though exact timing depends on the government review process.
• 📈 Despite China concerns, the overall demand for computing is stronger than anticipated, especially in the second half of the year.

Competitive Landscape and Market Share

• 🔍 AMD is constantly assessing the competitive environment, including domestic Chinese chip makers, in the AI market.
• 🏆 AMD believes it is well-positioned with a strong and strengthening roadmap for the rest of the world.
• 📊 The company sees both strong demand and market share gains in the PC and server segments, with leadership CPUs in both areas.
• 🎮 In gaming, AMD has a strong product cycle and is seeing good demand and customer traction.

Audience Question: AI Indispensability

• 💡 The question was raised whether AMD plans to become indispensable to AI companies like OpenAI, beyond being a cost-effective alternative to Nvidia.
• ✅ AMD's strategy focuses on executing its roadmap, delivering total cost of ownership, and being a dependable partner.
• 🚀 The company is confident in its strong roadmap and its ability to execute, noting that largest customers value dependable partners.