During an interview with CNBC, Su stated that the industry is now at an inflection point in the market, with AI adoption increasing across large enterprises.
Su added that the AI industry is still in its early innings, highlighting that businesses are realizing that artificial intelligence can reap them rewards.She said that this has led to an increase in the adoption of the technology, and thereby an increase in the demand for CPUs.Su stated that the CPU market is expected to be over $120 billion by 2030, growing at over 35% each year.
Advanced Micro Devices Inc. (AMD) CEO Lisa Su on Wednesday said that AI agents are driving a “tremendous demand” for compute.
During an interview with CNBC, Su stated that the industry is now at an inflection point in the market, with AI adoption increasing across large enterprises.
“Agents are driving a tremendous demand in the overall AI adoption cycle and we’re very excited to be in the middle of it,” she added.
AMD shares were up nearly 16% in Wednesday’s opening trade.
AMD’s Su Says We’re At Early Innings Of AI
Su added that the AI industry is still in its early innings, highlighting that businesses are realizing that artificial intelligence can reap them rewards. She said that this has led to an increase in the adoption of the technology, and thereby an increase in the demand for CPUs.
Su also explained the rising demand for CPUs, stating that the growing popularity of AI agents has led to an increase in compute needs.
“As recently as last year, we thought the CPU total addressable market (TAM) was going to be growing at about 18-20%… now what we’re seeing is, that rate is doubling,” she added.
Su stated that the CPU market is expected to be over $120 billion by 2030, growing at over 35% each year.
“From my standpoint, I think it’s really a validation of everything that we believed, but what’s happening is, the usefulness, the utility of AI has actually increased at an even faster pace than we originally thought,” Su said.
AMD’s Blowout Q1 Turns Wall Street Bullish
AMD’s blowout first-quarter (Q1) performance resulted in a slew of price target hikes from Wall Street.
According to TheFly, TD Cowen hiked its price target for AMD to $500 from $290 while keeping a ‘Buy’ rating. The firm cited AMD doubling its CPU TAM forecast that was issued six months ago as the reason for its bullish outlook.
JPMorgan hiked its price target for AMD to $385 from $270, stating that the chipmaker’s Q1 performance shows that a structural inflection is underway across the server CPU and data center accelerator growth trajectories.
Analysts at Jefferies echoed similar sentiments, stating that the CPU market narrative has meaningfully strengthened. The firm hiked its AMD stock price target to $415 from $300, while keeping a ‘Buy’ rating.
What Do Retail Traders Think About AMD?
Retail sentiment on Stocktwits around AMD trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels. AMD was among the top trending tickers on the platform at the time of writing.
One bullish user stated that their only regret is not buying more of AMD stock.
AMD stock is up 93% year-to-date and 318% over the past 12 months. The S&P 500 ETF (SPY) is up 31% over the past 12 months, while the Invesco QQQ Trust ETF (QQQ) is up 44%.
The iShares Core S&P 500 ETF (IVV) is up 31% during this period.
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