AMD CEO Lisa Su on China Export Restrictions, AI Chip Demand, and Growth

AMD's Strong Performance and Growth Drivers

• 🚀 AMD's overall business is performing extremely well, with the second quarter up 32% year over year and a projected 28% growth for the third quarter.
• 💡 The data center business is a key driver, with server CPUs gaining share in cloud and enterprise, and AI investments from hyperscalers boosting both CPU and GPU revenue.
• 🌱 Strength is also observed in PCs and gaming, 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 Business Outlook

• 🎯 AMD's accelerator business is set to drive second-half growth, primarily through its new MI355 product launched in June, which is competitive in total cost of ownership for inferencing and training workloads.
• 💰 The total addressable market (TAM) for AI accelerators in data centers is projected to exceed $500 billion over the next couple of years, with AMD aiming to capture a significant portion, leading to tens of billions in revenue.
• ⚡ A new AI 400 series with full rack-level solutions is planned for next year, representing a significant advancement in AI capabilities.

Navigating China Export Restrictions

• ⚠️ AMD is making progress with the US government on obtaining licenses to resume sales in China, with several licenses under review and positive indications of movement.
• 🤝 The US administration, particularly the Department of Commerce, is seen as open to finding a balance between national security and global AI technology proliferation.
• 🚫 While licenses are pending, AMD has chosen not to include China revenue in its third-quarter forecast, despite strong overall growth.
• 📦 Once licenses are approved, AMD expects to restart its supply chain and ship previously manufactured products, though the exact timing depends on government approvals.

Competitive Landscape and Market Position

• 🔍 AMD is aware of and monitors the competitive environment, including progress by China's domestic chipmakers, but remains confident in its roadmap.
• 🏆 AMD believes it is well-positioned overall, with a strong and strengthening roadmap for the rest of the world.
• 📊 The company is seeing strong refresh cycles in data centers and robust pull-through of solutions in enterprise and PC markets, alongside a strong product cycle in gaming.
• 🌟 AMD aims to be an indispensable partner for AI development, not just a cost-effective alternative, by executing its roadmap, delivering total cost of ownership, and being a dependable partner for its largest customers.