AMD CEO Lisa Su reported strong year-over-year growth driven by robust demand in CPUs, accelerators, and gaming, with significant future potential in AI-focused data center accelerators like the MI355 and upcoming MI400 series. Despite regulatory challenges affecting shipments to China, AMD remains optimistic about navigating export controls, maintaining competitive positioning against domestic Chinese chipmakers, and continuing leadership in gaming and AI markets.
In the recent earnings discussion, AMD CEO Lisa Su highlighted a strong quarter driven by robust performance across all business segments, particularly in CPUs and accelerators. The company reported a 32% year-over-year growth in the second quarter and projects a 28% increase for the third quarter. Key growth areas include data center CPUs gaining market share in cloud and enterprise sectors, as well as strength in gaming PCs and embedded systems, which are expected to return to growth in the latter half of the year. Overall, AMD is benefiting from increased demand for computing power, especially fueled by AI investments from major hyperscalers.
A significant focus was placed on AMD’s accelerator business, which is anticipated to grow substantially in the coming years. Lisa Su explained that the second half of the year’s growth will be primarily driven by accelerators, with the recent launch of the MI355 product receiving positive customer feedback for its cost-effectiveness in AI inferencing and training workloads. AMD expects the total addressable market for data center accelerators to exceed $500 billion over the next few years, with the company aiming to capture a large portion of this market. The roadmap includes the upcoming MI400 series, which will offer full rack-level AI solutions, marking a major advancement in their AI capabilities.
The conversation also addressed concerns about AMD’s business in China, particularly regarding the impact of U.S. government export licenses on shipments. Lisa Su noted improvements in the last 90 days, with several licenses under review and progress being made toward approval. While the company has excluded China-related revenue from its third-quarter guidance due to uncertainty, demand in the region remains strong. AMD expects to resume shipments to China once licenses are granted, although the timing remains unpredictable. The company is cautiously optimistic about navigating regulatory challenges while maintaining strong overall business momentum.
Regarding competition from Chinese domestic chip makers, AMD acknowledges the progress made by companies like Huawei in developing their own accelerators. However, Lisa Su emphasized AMD’s confidence in its competitive positioning and strong global roadmap. The company continues to engage closely with the U.S. administration to manage export controls and believes its AI and CPU product lines remain highly competitive worldwide. AMD’s strategy focuses on delivering high-performance, cost-effective solutions that meet the evolving needs of customers across various markets.
Finally, on the topic of gaming and AI, Lisa Su reaffirmed AMD’s leadership in gaming consoles and CPUs, highlighting the company’s consistent execution and strong product roadmap. While acknowledging that AI represents a high-margin growth area, she stressed AMD’s commitment to being a dependable partner with a proven track record of delivering on promises. The company aims to be indispensable in the AI space by offering competitive products and maintaining strong customer relationships, positioning itself as a key player alongside competitors like Nvidia.