tech
AMD's Su explains what's behind massive forecast change as stock roars 19% on earnings
CEO Lisa Su highlighted the growing demand for central processing units, doubling her long-term forecast after strong first-quarter earnings.
TL;DR
- AMD CEO Lisa Su cited agentic AI as the primary driver for increased demand for CPUs.
- The company exceeded first-quarter earnings estimates, with revenue increasing 38% year-over-year.
- AMD's data center business was the main contributor to the revenue growth.
- The company's stock price rose 19% following the positive earnings report and revised forecast.
- Su doubled her long-term server CPU market growth forecast from 18% to over 35% annually.
- The server CPU market is projected to exceed $120 billion by the end of the decade.
- Despite high demand and potential capacity constraints, AMD expects to meet customer compute demands.
- Analysts reacted positively, with Goldman Sachs upgrading AMD's rating to buy and increasing its price target.