AMD's Lisa Su Sees AI Demand Surging, Even as Market Punishes Stock

Despite a punishing 16% drop in its stock price on Wednesday, Advanced Micro Devices CEO Lisa Su told CNBC that demand for the company's most sophisticated chips is not just strong—it's gaining speed. Su framed a first-quarter revenue forecast that disappointed some investors as a reflection of an AI market expanding faster than even insiders predicted.

"From my vantage point, AI is accelerating at a pace I would not have imagined," Su said in an interview. She noted that over the past several months, demand has consistently exceeded available computing power. AMD's data center business, she reported, accelerated from the fourth quarter into the first, with demand for its central processors described as exceptionally strong as enterprises race to build AI capabilities.

The sell-off followed AMD's Tuesday earnings report, where fourth-quarter results beat expectations but were eclipsed by a forward-looking revenue projection of approximately $9.8 billion. While that figure surpassed the average Wall Street estimate of $9.38 billion, some analysts had anticipated a more robust guide, given the current surge in AI infrastructure spending under the second Trump administration's tech-focused policies.

Su pointed to the second half of 2026 as a critical period for AMD, when it begins volume shipments of its new integrated AI system, Helios. She expressed confidence that the company is on schedule for the launch, positioning it to capture more of a market where, by her account, demand continues to outstrip supply.

Source: CNBC