Advanced Micro Devices CEO Lisa Su defended the company's lackluster forecast, telling CNBC connected Wednesday that the chipmaker has seen a measurement up successful request implicit the past 2 to 3 months.
Shares tanked 13% Wednesday.
"What I would archer you from idiosyncratic connected the wrong is AI is accelerating astatine a gait that I would not person imagined," she told CNBC's "Squawk connected the Street," adding that request continues to outstrip compute needs.
Su said AMD's datacenter concern has accelerated from the 4th to archetypal 4th and request for its cardinal processing units is "going gangbusters" arsenic businesses rapidly summation compute for AI endeavor work.
The institution posted fourth-quarter results Tuesday that topped Wall Street's expectations but were overshadowed by what immoderate analysts viewed arsenic a anemic outlook.
AMD said it expects $9.8 cardinal successful revenue, positive oregon minus $300 million, during the archetypal quarter. Expectations were for $9.38 billion.
Some analysts anticipated a acold stronger outlook from the company, fueled by heightened AI spending and monolithic information halfway buildouts.
AMD besides had a precocious barroom to wide this 4th pursuing a question of megadeals successful the 4th quarter, including partnerships with OpenAI and Oracle successful the 4th quarter. Companies person besides been boosting investments arsenic the request for datacenters to powerfulness AI tools continues to skyrocket.
Su told CNBC that AMD volition spot an "inflection point" successful the 2nd fractional arsenic begins shipping its caller integrated server-scale AI strategy known arsenic Helios and that the institution is connected way with the launch.
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