AMD CEO Lisa Su reported strong revenue growth driven by gains in data centers, gaming, and accelerators, with a particular focus on expanding in the AI accelerator market despite export challenges in China. She expressed confidence in AMD’s competitive AI roadmap and global market position, emphasizing the company’s commitment to innovation and regulatory navigation while maintaining leadership in both gaming and AI sectors.
In the recent earnings discussion, AMD CEO Lisa Su highlighted a strong quarter for the company, with a 32% year-over-year revenue increase in the second quarter and a projected 28% growth in the third quarter. The growth is driven by robust performance across all business segments, particularly in data centers where AMD’s server CPUs are gaining market share in both cloud and enterprise sectors. The company is also seeing strength in gaming PCs, consumer and commercial products, and expects the embedded segment to return to growth in the second half of the year.
A significant focus was placed on AMD’s accelerator business, which is expected to grow substantially. Lisa Su explained that the second half of the year’s growth will be primarily driven by accelerators, especially with the launch of the competitive MI355 product for AI inferencing and training workloads. AMD anticipates capturing a large portion of the over $500 billion AI total addressable market (TAM) for accelerators in data centers over the next few years, with further advancements planned through the MI400 series, which will offer full rack-level AI solutions.
Regarding the challenges in the China market due to US government export restrictions, Lisa Su noted improvements over the past 90 days. While AMD had to exclude China-related revenue from its third-quarter guidance due to pending licenses, the company is optimistic about the review process and expects to resume shipments once licenses are approved. She emphasized that despite these challenges, AMD’s overall business remains strong, with growing demand and positive momentum in other regions and segments.
On competition from Chinese domestic chip makers, Lisa Su acknowledged their progress but expressed confidence in AMD’s strong AI roadmap and product competitiveness globally. She stressed that AMD’s leadership in CPUs and GPUs, combined with a solid execution track record, positions the company well to maintain and grow its market share worldwide. The company continues to engage closely with the US government to navigate regulatory complexities while advancing its technology leadership.
Finally, addressing a viewer question about AMD’s position in gaming consoles versus AI chips, Lisa Su emphasized AMD’s consistent execution and strong product roadmap. She highlighted the company’s ability to deliver on promises, provide cost-effective solutions, and be a dependable partner to large customers. While gaming remains a key area, AMD is focused on becoming indispensable in the AI space by offering competitive, high-performance accelerators and CPUs that meet the evolving needs of the market.