If AI infrastructure demand is slowing, as some market watchers declare, AMD (AMD) CEO Lisa Su is not seeing it.
“The necessity for compute continues to be immense,” Su instructed me in a Yahoo Finance unique interview on Monday. “We see that all through all of our prospects globally, and we’ll proceed to take a position strongly on this space as a result of I believe that is the one most necessary know-how. I prefer to say it is the one most necessary know-how of the final 50 years.”
Su is backing up her views with chilly, onerous money.
AMD introduced at this time it closed on its $4.9 billion acquisition of ZT Programs. Introduced in August 2024, the deal is predicted to bolster AMD’s presence in compute infrastructure for hyperscalers. ZT Programs counts Microsoft (MSFT) as a key buyer, as does AMD.
The corporate anticipates the transaction to be accretive to non-GAAP outcomes by the top of 2025. The corporate is “actively engaged” with strategic companions to buy ZT Programs’ US-based information middle infrastructure manufacturing enterprise in 2025.
As of 11:26:24 AM EDT. Market Open.
AMD NVDA
Su stated a call on the manufacturing enterprise might be shared in “coming months.”
Added Su, “I need to be actually clear about this. There isn’t any query we’re within the very early innings of AI now — to place a few of the noise apart. We proceed to see extra functions, extra functionality. Enterprises are simply on the very early innings of adoption. And albeit, they want extra assist from of us like ourselves.”
AMD’s inventory continues to be held again amid the broader sell-off in momentum tech names corresponding to rival Nvidia (NVDA). Shares are down 15% yr so far, underperforming the S&P 500’s 5% drop.
The corporate’s first quarter steerage left some on the Avenue uneasy too.
AMD stated in early February first quarter gross sales can be down 7% sequentially. Information middle and PC chip gross sales are seen decrease.
“Though AMD has improved its competitiveness throughout CPU and GPU merchandise with Ryzen, EPYC, and Radeon platforms and is on observe to enhance its market share and drive significant income development within the close to time period, we imagine long-term share positive factors are much less sure,” stated JPMorgan analyst Harlan Sur in a be aware to shoppers. “As well as, AMD must make investments closely in working expense (particularly R&D) with a purpose to maintain tempo with the market leaders.”
Sur reiterated a Impartial score on AMD’s inventory.
Brian Sozzi is Yahoo Finance’s Govt Editor. Observe Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips about tales? E-mail brian.sozzi@yahoofinance.com.
