Lisa Su Says Customers Want 'A Lot More Compute' — Sees 'Tremendous Momentum' In AMD’s Data Center Business

• Su said the AI market has reached an “inflection” in demand as enterprises move beyond experimentation and begin deploying AI in production.
• Rather than reducing the importance of CPUs, Su expects agentic AI to increase their role, saying CPU-to-GPU ratios are moving to "better than 1:1" over the next three to five years.
• According to Su, customers are now planning data center buildouts 12, 24 and 36 months in advance, giving AMD much stronger visibility into future demand.

Advanced Micro Devices Inc. (AMD) CEO Lisa Su said customers are demanding "a lot more compute" as artificial intelligence adoption accelerates, with the chipmaker seeing "tremendous momentum" in its data center business amid a surge in enterprise AI deployments.

During an interview with CNBC, Su said AMD's data center business is on track to grow well over 100% by 2027, driven by hyperscale and enterprise customers planning AI infrastructure investments further in advance.

"What we've seen in the AI market over the last six or seven months is really an inflection in demand... especially in the CPU market,” she said.

AMD shares were down nearly 6% in Wednesday’s opening trade. AMD was among the top trending tickers on Stocktwits at the time of writing.

Su Says AI Demand Has Reached An 'Inflection' Point

The AMD CEO said the AI market has reached an “inflection” in demand as enterprises move beyond experimentation and begin deploying AI in production.

“As AI is becoming more useful for people, as they're using more agents, as enterprises are bringing more of their workload, let's call it experimentation into productive workloads... people need a lot more CPU compute as well as GPU compute,” she said.

Rather than reducing the importance of CPUs, Su expects agentic AI to increase their role, saying CPU-to-GPU ratios are moving to "better than 1:1" over the next three to five years.

Su Sees Bigger Opportunity For AMD In Data Centers

Su said that customers are now planning data center buildouts 12, 24 and 36 months in advance, giving AMD much stronger visibility into future demand.

“We believe that there will be an opportunity to even be significantly above 100% growth in our data center business,” she said, citing stronger customer planning and increasing compute requirements.

On Tuesday, AMD reported earnings per share (EPS) of $1.66 on revenue of $11.54 billion in Q2, compared to Wall Street expectations of an EPS of $1.61 per share on revenue of $11.3 billion, according to Fiscal.ai data.

AMD's Data Center revenue more than doubled to $6.7 billion, driven by demand for EPYC server processors and Instinct AI GPUs.

Opportunity In Space

The AMD CEO also highlighted the growing importance of the space industry, calling Space Exploration Technologies Corp. (SPCX) “an incredibly important technology company,” while adding that AMD is proud of the work it is doing with the Elon Musk-led company across multiple areas.

She added that AMD's broad portfolio, which includes CPUs, GPUs, FPGAs and adaptive computing products, positions the company to support a wide range of technology companies.

“We do business with just about every tech company out there, especially in the space market," she said, adding that the sector is "extremely important" for AMD as it matches the right compute to different workloads through products such as its Helios platform and upcoming MI500-series accelerators.

What Retail Traders Think About AMD

Retail sentiment on Stocktwits around AMD trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

AMD stock is up 128% year-to-date and 180% over the past 12 months. The S&P 500 ETF (SPY) is up 23% over the past 12 months, while the Invesco QQQ Trust ETF (QQQ) is up 29%.

The VanEck Semiconductor ETF (SMH) is up 101% during this period, while the iShares Semiconductor ETF (SOXX) is up 125%.

Also See: FUBO CEO Teases November Strategy Reveal After Strong North America Subscriber Growth In Q3

For updates and corrections, email newsroom[at]stocktwits[dot]com.