## AMD CEO Lisa Su Defends Outlook Amid AI Demand Surge
Advanced Micro Devices CEO Lisa Su has pushed back against concerns over the company’s recent forecast, asserting that the semiconductor giant is experiencing a significant uptick in demand, particularly driven by the accelerating pace of artificial intelligence development. “AI is accelerating at a pace that I would not have imagined,” Su stated in an interview, emphasizing that current compute needs are still being outpaced by this burgeoning demand.
Despite AMD’s fourth-quarter results exceeding Wall Street’s expectations, the company’s stock saw a notable decline following the release of its first-quarter revenue guidance. AMD projects first-quarter revenue to be around $9.8 billion, with a margin of error of $300 million, a figure that surpassed the consensus estimate of $9.38 billion. However, some analysts had anticipated a more robust outlook, buoyed by the widespread increase in AI spending and extensive data center expansions.
Su highlighted a strong acceleration in AMD’s datacenter business from the fourth to the first quarter, noting that demand for its central processing units (CPUs) is “going gangbusters” as enterprises significantly scale up their computing power for AI initiatives. This surge in demand comes at a critical juncture for AMD, following a series of substantial deals in the previous quarter, including strategic partnerships with OpenAI and Oracle. These collaborations underscore the growing imperative for data centers to support the sophisticated computational demands of advanced AI tools.
Looking ahead, Su indicated that AMD is poised for an “inflection point” in the latter half of the year with the planned shipment of its new integrated server-scale AI system, codenamed Helios. The company remains confident in its timeline for the launch of this advanced solution, signaling a strategic move to further solidify its position in the rapidly evolving AI hardware landscape. The development and deployment of such integrated systems are crucial for offering not just raw processing power, but also optimized architectures that can efficiently handle the complex workloads characteristic of modern AI applications, from large language models to sophisticated data analytics. The success of Helios could represent a significant competitive advantage for AMD, directly addressing the market’s hunger for more powerful and specialized AI hardware.
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