Advanced Micro Devices (AMD) has historically operated in the shadow of Intel (INTC), and while it has been able to free itself from those shackles thanks to some technological leadership, it is now working hard to do the same with Nvidia (NVDA). That’s easier said than done, however, as Nvidia is unlikely to mirror Intel’s past mistakes. This means that what AMD CEO Lisa Su has to do is continue the fight. Most of last week was dominated by videos of Nvidia CEO Jensen Huang enjoying street food in China. What people don’t know is that Su was also recently on a mission in the country, but not for the food.
Su recently visited China to speak with some of AMD’s largest customers. He then stopped in Taiwan to make sure the supply chain serving these customers was running well, and when I say running well, I mean smoothly executing the unprecedented CPU demand manufacturers are currently dealing with. Su confirmed this when he said that CPU demand is significantly higher than even management anticipated just 12 months ago. That’s exactly why Su went to see how the world’s largest contract chipmaker, Taiwan Semiconductor (TSM), is able to handle the orders coming in from AMD.
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AMD also intends to invest more than $10 billion in Taiwan’s AI sector. Investments focus on advanced packaging and manufacturing for rack-scale systems. While we don’t know if these companies will be able to handle AMD’s orders, we do know that Su is exactly where he needs to be for AMD. If agent AI is going to lead the future of the company, then the CEO is taking exactly the right steps to benefit shareholders in the future.
About Advanced Micro Devices Stock
Headquartered in Santa Clara, California, AMD is a leading semiconductor company specializing in high-performance computing and graphics solutions. The company operates through its Integrated, Data Center and Client and Gaming segments, with its broad product portfolio including microprocessors, graphics processors and system-on-chip (SoC) solutions.
AMD has delivered exceptionally strong performance over the past year, significantly outperforming the S&P 500 ($SPX), 352% more than the index’s return of 30% over the same period. This strong rally reflects growing investor confidence in AMD stock. The momentum has continued this year as well, with the stock more than doubling year to date (YTD), up 134%.
