AMD CEO Confirms No China AI GPU Licenses Granted Yet & Highlights Robust Data Center Growth

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A Look at AMD’s Strategic Position from CEO Lisa Su

In a recent interview with CNBC, AMD’s CEO Lisa Su expressed confidence regarding the company’s outlook as it approaches the latter half of the year. Despite a 5% drop in shares during premarket trading after the release of their second-quarter earnings report—which indicated a GAAP operating loss and underwhelming results in the data center segment—Su emphasized the positives, particularly in the data center division, which she believes is evolving favorably as AMD receives encouraging forecasts from clients.

The Global Semiconductor Supply Chain: A Key Focus

Su remarked that AMD is “coming off a very strong first half, ”highlighting both the exceptional performance of the first quarter and the solid guidance for the second half. The decline in operating income during the second quarter was attributed to U. S.sanctions affecting GPU sales to China. In light of these restrictions, Su noted that the company is collaborating closely with the U. S.government regarding AI chip exports, although necessary license approvals are still pending.

Anticipated Growth in AI and Data Center Segments

Looking ahead, Su anticipates a robust 28% growth in the upcoming quarter along with 13% sequential growth. She underscored that AMD is at the forefront of a significant opportunity in artificial intelligence, valuing the AI revenue potential at tens of billions of dollars.

Regarding the data center business, Su commented, “I would say that our DC business is doing extremely well.”She reinforced AMD’s role as a major player in high-performance computing, reflecting on optimistic trends driven by customer demand for reliable, high-performance, and cost-effective chips.

The Importance of Domestic Manufacturing

The discussion also delved into domestic chip manufacturing, with Su acknowledging AMD’s support for U. S.manufacturing initiatives. While she recognized that having a resilient supply chain is beneficial for AMD, she emphasized the complexities of transitioning the chip supply chain to domestic sources, particularly given current global dependencies. However, she did reveal that AMD is actively transitioning some production to the U. S., specifically in Arizona.

Market Position and Future Aspirations

Refocusing on the data center market, Su indicated that AMD is successfully increasing its market share, marking 33 consecutive quarters of year-over-year growth in the server sector. Customers are increasingly seeking dependable, high-performing, and budget-friendly chips, which she believes will continue to be the main driver of AMD’s growth.“I think the data center business is the main driver of our growth, ”Su stated, as AMD aspires to establish itself as the foundational computing provider for the largest hyperscale enterprises.

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