Transcript
0:04 after a roller coaster of your AMD one of our favorite chip makers one owned by my travel Trust basically flat for 2024 and remember AMD is the only chipmaker that comes close to Nvidia in this artificial intelligence space yet now the stock's down roughly 80 points from its highs this spring something's wrong here so let's check in with Dr Lisa sue the chair and Co of advanced mic devices get a better sense of what's going on Dr
0:26 Sue welcome back to M Jim it's wonderful to be here with you well I saw you get honored ear this week it was a terrific event time 100 and you were a featured toaster because you've done so much well and you said something really caught my ear intention you said that we'll look back 10 years from now and we can't believe what life was like now will you tell me what you're seeing 10 years from now that would make it so this seems
0:50 also pedestrian well first of all Jim you know great to be here with you and I have to say I really do believe you know we talk a lot about AI we're just really at the beginning of understanding what AI can do for us and you know if you take a step back like I've been in this industry for like over 30 years and we've seen you know a lot of interesting technology I mean we saw
1:12 Cloud we saw mobile we saw PCS we saw all these were all great Technologies but AI is something different because it makes U everything better in terms of you know it makes our businesses you know more productive it makes our Engineers more productive it makes researchers more productive and it helps us really you know I can see a world where AI really helps us solve you know really some of the world's you know toughest problems and that's why I say
1:40 you know it was it was a nice event on a Monday night it was one of those events where you could see you know a decade from now nobody's going to be asking what was the ROI on AI they're going to say that AI is part of our life it's it's how we live it's it's how we run our businesses it's how we do our research it's how we teach our kids that's the world that I see what do you
2:01 say to people right now who are watching who just say you know what that's just businesses talking to businesses I don't see it impacting my life at all oh I I beg to disagree I I really believe that AI will impact everyone's lives it's just starting today so you know let's not be impatient right Tech Trends are meant to play out over years not over months we've only been in this let's call it you know chat GPT world for
2:28 maybe like 18 months all learning it's it's fun you know we all use it we use it to make ourselves you know to answer questions for us we use it to help us in sales and marketing you know we use it to help us build chips frankly in terms of large language models but now we're going to see it in all aspects of our lives and you know I I think of it as you know personal
2:50 assistance I think of it as education probably one of the areas that I'm most excited about is you know what we can do in healthcare and what we can do in Excel accelerating research and you know these are things that you know if you look at the process that it would take for you know drug companies to discover new drugs it might take like you know years and most fail 90% fail exactly if you could change years to
3:17 weeks right that's or days that's kind of the superpower and that's just one example and you know the beauty of all this is you need the Computing and you know that's what we do right we do all the foundation of the Computing that enables you know AI to help us in all of these industries and you know that's why I'm just so excited about where we are right now all right now I want to dis abuse some people of a notion people
3:42 tell me well listen it's either Nvidia or it's AMD and to me if you don't think that there's room for two you really don't understand the space but that you taught me that let's teach others that well it's absolutely true you know the way to think about it is there's no one siiz fits all in Computing there's no you know there's no you know only one architecture actually you're going to need the right compute for each
4:08 application like I'm excited about AI everywhere I'm excited about AI in the cloud I'm excited about AI in PCS you know so that we each have our own you know sort of AI engines I'm excited about AI at you know the edge and and infrastructure that that we use you know throughout you know the entire world so there all kinds of different Computing that you need and the beauty of AMD is that you know we've had this
4:34 vision for the last you know 10 plus years this is kind of how we've thought about you know so what do we want to be when we grow up we want to be the high performance Computing leader and AI is a huge huge piece of that okay but let me give you how I feel as someone who's followed you from when the stock was at five and you explained to me why to sell Intel at 50 and why buy AMD at5 so far
4:55 so good but you explained to me a road map and it was a road of Italian cities and it was going to lead to Triumph and when that Triumph occurred your company be worth a lot more I don't hear much about the road mapap anymore I just hear much more about AI what happened to the road map and is that not making you that much money anymore well first of all let me you know take a step
5:17 back and say you need Computing of all sizes so if you want to talk about Italian cities I could talk to you about Italian cities there there's really U think about this way Jim there's like you know three types of computing right there's you know this big accelerator AI Computing that we're talking about for our large language models and for you know all of that stuff you know we're at dreamforce yeah Mi 300 we're at dreamforce this week there's a lot of
5:43 talk about what you need to do you know with agents and things like that there's traditional compute and in in CPU land where our Italian road map has done extraordinarily well if you think about you know data centers around the world they need to become more efficient you know there's too much old equipment that equipment has to be upgraded you need the the highest performance lowest power efficiency you know overall total cost of ownership you know we have we're now in our
6:13 fifth generation of our Italian city so turn is our latest and greatest you know products there we're just about to launch it in the next quarter lots of exciting things going on there I talked about aips that are also a very exciting Trend that we're going to see going forward in the PC market where we have you know intelligence in Ai and then you know we also have our embedded Computing gym you know I've talked a lot about that U you know sort
6:41 of the what we're doing with fpgas and adaptive Computing you know Aerospace and defense we use a tremendous amount of AMD underneath that when you think about industrial test and measurement so we are Computing across the board obviously there's a lot of excitement around Ai and accelerators but they're really you know you know three major legs of our Computing stool well it makes sense that the AI part is exciting cuz you put out some pretty amazing numbers for 2027 a lot of people
7:09 initially felt that they were impossible as we go on it seems like that they're reasonable and rational projections aren't they absolutely and we see the Computing Market in you know AI accelerators getting to $400 billion by 2027 we don't care about Italian road maps no no no we hey we we love love all compute we love all compute but when you think about the power of AI and where it goes you know sure that that's where a
7:37 lot of our focus is you know we've made tremendous progress in you know our road map around accelerators you know mi30 is our our current generation we're now on a one-year Cadence so every year we come out with you know new hardware such that we can make AI even more efficient and more capable going forward so we're you know we're launching our next Generation here again in the fourth quarter then you'll see us with another a new generation Mi 350
8:07 Series in 2025 and then Mi 400 series in 2026 so our Italian cities plus our accelerators you'll see you know just a tremendous growth opportunity and if we saw you in the same room as Jensen Wong would you be able to say you know what I get along with a guy a decent competitors or are things just too heated between the two companies I'm a big believer in the technology ecosystem really works when you have you know good competition and
8:38 and frankly you know good partnership as well and there are places where you know we partner across the ecosystem and then there are places where we compete but the the main thing is customers want choice right our customers are the largest customers in the world they want the best tech you know everybody wants to have the good choices and you know that's what what we're offering we're offering just a a very very you know strong you know
9:02 high performance Computing road map and that world works when demand exceeds Supply doesn't it it is one of those cases Jim where you know people have asked me over and over again you know are we going to have enough and we are building we are building you know a ton so that we have enough of computing capacity but demand is very strong as well and so you know we're going to continue to to ramp up the
9:28 supply chain but I view this as again let's not think about it as you know what happens you know over the very short term let's go back to how we started with like we're going to look back at this whole time you know 10 years from now and we're going to say you know what was life like before AI well I tell you I look back 10 years from from right now and I remember where your stock was I remember you told me I
9:53 was going to do and had I said buy it at five and sell it at seven well I guess we would have missed a lot of points want to thank Lisa Sue AMD chair and CEO don't grade it on a day when the FED gives you 50 basis point cut that's not how to look at stocks businesses or at least assume have money back after the break coming up is workday Rising the other enterprise software star jumping
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