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0:00 JUST GOING TO PUT MY NECK OUT THERE AND SAY, I WISH MY CHARITABLE TRUST COULD BUY IT RIGHT BEFORE I DO THIS INTERVIEW. AND THAT'S WHY WE HAVE AI AND DATA CENTER CHIP DEMAND FUELING. Q THREE CRUSHING, CRUSHING OF THE ESTIMATES. AND THAT'S WHY IT'S SO TERRIFIC TO HAVE. NOW, FIRST ON CNBC, AMD CHAIR AND CEO LISA SU. LISA, SO MANY POSITIVES. IT'S VERY HARD TO FIGURE OUT WHICH ONES TO START. HOW ABOUT THE FACT THAT YEAR OVER YEAR AND QUARTER LINKED QUARTER, SO TO SPEAK, DRAMATIC SURPRISES FROM WHERE WE THOUGHT WOULD HAPPEN EVEN EVEN THREE MONTHS AGO AND EVEN ONE YEAR AGO?
0:33 >> WELL, FIRST OF ALL, JIM, DAVID, CARL, IT'S GREAT TO BE HERE THIS MORNING. IT IS A VERY, VERY STRONG TIME IN TERMS OF DEMAND FOR COMPUTE. WE HAD A GREAT THIRD QUARTER, YOU KNOW, EXCEEDED OUR EXPECTATIONS. YOU KNOW, DATA CENTER WAS EXTREMELY STRONG. WE GREW OVER 40% YEAR OVER YEAR. AND AS WE LOOK FORWARD, WE'RE SEEING EVEN STRONGER DEMAND OVERALL. JIM. SO I THINK WHAT WE'RE SEEING IS, YOU KNOW, AGAIN, COMPUTE IS ONE OF THOSE THINGS THAT EVERYBODY IN THE INDUSTRY WANTS, AND WE ARE EXTREMELY WELL SET UP WITH OUR NEWEST PRODUCTS RAMPING STARTING IN THE THIRD QUARTER AND GOING INTO Q4 AND 2027.
1:10 >> I'VE BEEN WATCHING YOUR STOCK FROM BEFORE THE ELECTION, AFTER. IT'S OBVIOUSLY PEOPLE FEEL THAT WHATEVER YOU THOUGHT WOULD BE ABOUT DATA CENTER BUILD HAS GOT TO BE CURTAILED. I'M CURIOUS ABOUT WHAT YOU THINK BECAUSE FRANKLY, WHAT YOU HAVE IN THE PIPELINE, I CAN'T SEE A SINGLE DEAL OR OF CONSEQUENCE THAT WOULD BE CANCELED. AND WHAT YOU HAVE NOT IN THE PIPELINE FOR 2030 132 COULD BE ALSO SPOKEN FOR, GIVEN THE DEMAND THAT WE SEE. >> WELL, WE ARE IN A PLACE, JIM, WHERE I THINK THERE IS A INTENSE NEED FOR MORE COMPUTE.
1:42 AND WHEN WE LOOK AT THAT, WE ARE SEEING A VERY STRONG ORDER PIPELINE. WE ARE ACTUALLY SEEING THE DEMAND BEING HIGHER THAN SUPPLY. BUT WE WERE ABLE TO GUIDE, FOR EXAMPLE, OUR DATA CENTER BUSINESS IS GOING TO GROW 50% SEQUENTIALLY QUARTER ON QUARTER INTO THE FOURTH QUARTER. WE HAVE ACTUALLY LANDED OUR FIRST RACKS AT OUR TOP CUSTOMERS, INCLUDING ANTHROPIC, OPEN AI, MICROSOFT, ORACLE, META. AND THESE CUSTOMERS ARE SEEING GREAT PERFORMANCE OUT OF OUR NEWEST PRODUCTS. SO, YOU KNOW, WHAT I LOOK AT IS THIS IS AN OPPORTUNITY TO CONTINUE TO EXPAND. WE SEE OUR BUSINESS GROWING OVER 80% NEXT YEAR, WHICH IS A VERY SIGNIFICANT NUMBER. IT'S OVER DOUBLE OF OUR LONG TERM MODEL. AND WE SEE LOTS OF OPPORTUNITY TO CONTINUE EXPANDING BECAUSE OF OUR VERY STRONG CUSTOMER PARTNERSHIPS, AS WELL AS VERY STRONG SUPPLY CHAIN PARTNERSHIPS.
2:30 >> I WOULD ALSO POINT OUT THAT YOU HAVE CHIPS THAT DON'T NEED AS MUCH DRAM, WHICH I THINK WOULD MATTER TO A LOT OF PEOPLE. I HAVE THE NOVEMBER AMD FINANCIALS ANALYST DAY FROM 2025 IN FRONT OF ME. LISA, YOU TALKED ABOUT THE COMPOUND ANNUAL GROWTH RATE OF 60% FOR DATA CENTER BUSINESS. HOW WOULD YOU REVISE THAT? NOW LOOKING AT WHAT YOU JUST DID? >> WELL, I THINK WHAT WE SEE IS AGAIN, THIS YEAR, WE'RE GOING TO BE 100% OF OUR DATA CENTER BUSINESS IN TERMS OF GROWTH NEXT YEAR. WE'RE ALSO FORECASTING OVER 100% GROWTH.
3:02 OUR SERVER CPU BUSINESS. YOU MIGHT HAVE SEEN, FOR EXAMPLE, THE NEWEST CAPABILITIES WITH META MUSE AND THESE PERSONAL AGENTS. I THINK WE'RE SEEING AGAIN, WE'RE AT THE VERY BEGINNING OF THE ADOPTION CYCLE WHERE PEOPLE ARE SEEING WHERE, YOU KNOW, AI AND SUPERINTELLIGENCE CAN REALLY TAKE US. AND FOR THAT, YOU NEED ALL KINDS OF COMPUTE, YOU NEED CPUS, YOU NEED GPUS, YOU NEED ALL OF THESE ACCELERATORS TO COME TOGETHER. AND THI