AMD's Strategic Positioning in the Evolving PC Market: Lisa Su's Optimism and Jim Cramer's Endorsement
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In Nvidia And AMD ARM PC Race, Lisa Su Optimistic About Product Positioning Despite Market Underrepresentation: 'We Take All Of Our Competition Very Seriously' - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)
Advanced Micro Devices, Inc. AMD CEO Lisa Su, on Tuesday, acknowledged the company's underrepresentation in the PC market but expressed confidence in its product positioning. What Happened: During AMD's second-quarter earnings call, Su responded to a question from Deutsche Bank analyst Ross Seymore about her company's standing in the AI PC market and the potential impact of emerging Arm-based systems. In response, she expressed satisfaction with AMD's client business results and the company's roadmap. "The Zen 5-based products, we're launching both notebook and desktop in the middle of this year." The AMD CEO went on to add, "What we've seen is actually very positive feedback on the product. So, we just actually launched the first Strix-based notebooks over the weekend. They went on sale." See Also: Elon Musk Blocked 'Vampires' Fame James Woods For Slamming His Blocking Ban, Now The Actor Can't Stop Sin Su also spoke about the importance of AI PCs to the overall PC category and predicted better seasonality in the second half of the year, driven by the strength of their product launches. Looking ahead to 2025, Su anticipates AI PCs to span a larger set of price points, opening up more opportunities. When asked about the impact of Arm-based systems, she acknowledged AMD's underrepresentation in the PC market but expressed confidence in their products' positioning against competition. "I would say that we take all of our competition very seriously. That being the case, I think our products are very well-positioned," she stated. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: AMD's second-quarter earnings and revenue increased year-over-year, driven by strength in data center revenue and a fairly positive performance in the client business. This performance came despite concerns about a possible cutback in orders from Microsoft Corporation and the formidable threat posed by artificial intelligence frontrunner Nvidia Corp. NVDA. Last year, it was reported that Nvidia and AMD are both planning to launch Arm-based CPUs for Windows-based PCs as soon as 2025. This could be a major expansion of Microsoft's Windows on Arm work, considering the tech giant has so far exclusively partnered with Qualcomm. Price Action: AMD shares surged 7.64% in after-hours trading, reaching $149.02, after closing Tuesday's regular session at $138.44, a decrease of 0.94%, according to Benzinga Pro data. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Microsoft's Windows Reportedly Warns Users To Backup Their Data In The Cloud To Have 'Peace Of Mind' -- But At What Price? Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs
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'AMD's Results Proved Our Plan To Reinvest In The Stock Was Right,' Says Jim Cramer Who Credits Lisa Su As Key Factor In Chip Makers Success - Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD)
Advanced Micro Devices Inc. AMD witnessed a significant surge in its stock price after the company's second-quarter results exceeded expectations, validating the decision of a prominent investor to reinvest in the chipmaker. What Happened: AMD's revenue for the quarter rose by 9% to $5.84 billion, surpassing the estimated $5.72 billion,. The adjusted earnings per share also increased by 19% to 69 cents, a cent above the estimates. The company's data center business, particularly its new artificial intelligence chip, the MI300X, played a pivotal role in this performance. Jim Cramer, a well-known investor, and host of "Mad Money" on CNBC, expressed his confidence in AMD's future. He highlighted the company's CEO, Lisa Su, as a key factor in AMD's success, stating that "AMD's results proved our plan to reinvest in the stock was right." The news of the strong earnings report caused AMD's stock to jump over 7% in after-hours trading, providing a much-needed boost after a difficult period for the company and the tech industry as a whole. See Also: Kamala Harris: 'The Will Of The Venezuelan People Must Be Respected' As Socialist Nicolás Maduro Faces Faces Toughest Test At The Ballot In Decades Why It Matters: The recent surge in AMD stock follows a period of uncertainty and market pressure. In May Cramer commented that AMD under $150 would be 'terrific', but noted that it doesn't match up to NVIDIA Corp. NVDA. AMD shares rebounded after the company posted a second-quarter beat and provided guidance that topped expectations. CEO Su emphasized the accelerating AI business, which helped the stock rise in after-hours trading. This was a significant rebound from earlier market pessimism about potential cutbacks in orders from Microsoft Corp. MSFT and competition from Nvidia. Additionally, the second-quarter report was crucial as it provided insights into AI-related spending, a key area where AMD is catching up to Nvidia. The company was expected to report second-quarter earnings of $0.68 per share, up from $0.58 per share in the year-ago quarter. The earnings report came at a pivotal moment for the tech sector, with several mega-cap tech giants, including Microsoft, Apple Inc, AAPL, and Amazon.com, Inc, AMZN, also reporting their quarterly earnings in the same week. This collective reporting period was seen as a decisive market test for the elite group known as the Magnificent Seven. Price Action: AMD shares surged 7.64% in after-hours trading, reaching $149.02, after closing Tuesday's regular session at $138.44, a decrease of 0.94%, according to Benzinga Pro data. Read Next: Trump Accuses OPEC Of Manipulating Oil Prices To Favor Kamala Harris, Warns 'She Will Be A Disaster For For The USA!' Image Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs
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AMD CEO Lisa Su expresses confidence in the company's product positioning for ARM PCs, despite current market underrepresentation. Meanwhile, Jim Cramer praises AMD's performance and credits Su's leadership.
AMD's Optimistic Outlook on ARM PC Market
AMD's CEO Lisa Su has expressed confidence in the company's strategic positioning for the emerging ARM PC market, despite the current underrepresentation. Speaking at the UBS Global Technology Conference, Su acknowledged the growing interest in ARM-based PCs, particularly following Qualcomm's recent announcement of its AI-enabled PC chips
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.Su stated, "I think we feel good about where we are positioned," highlighting AMD's commitment to both x86 and ARM architectures. This dual-pronged approach allows AMD to cater to diverse market demands and maintain flexibility in its product offerings.
Market Dynamics and Competition
The PC market is witnessing a shift with the increasing adoption of ARM-based processors, traditionally associated with mobile devices. This trend has been accelerated by major players like Apple with its M-series chips and Qualcomm's recent advancements in AI-enabled PC processors.
While AMD currently has a limited presence in the ARM PC segment, Su's comments suggest that the company is actively working on strategies to capitalize on this growing market. The competition in this space is intensifying, with NVIDIA also making moves to enter the ARM PC market.
Jim Cramer's Endorsement of AMD
In a separate development, CNBC's Jim Cramer has expressed his satisfaction with AMD's recent performance. Cramer, who had previously recommended reinvesting in AMD stock, credited CEO Lisa Su for the company's success
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.Cramer stated, "AMD's results proved our plan to reinvest in the stock was right," highlighting the company's strong financial performance and market position. This endorsement from a prominent financial commentator adds to the positive sentiment surrounding AMD's strategic direction and leadership.
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AMD's Financial Performance
AMD's recent financial results have bolstered investor confidence. The company reported better-than-expected earnings, with a particular emphasis on the growth in its data center and embedded segments. This performance has contributed to a positive outlook for AMD's stock, as reflected in Cramer's comments.
Leadership and Future Prospects
Lisa Su's leadership continues to be a key factor in AMD's success. Her strategic vision, which includes positioning AMD for emerging markets like ARM PCs while maintaining strength in traditional segments, has been well-received by industry analysts and investors alike.
As the PC market evolves, AMD's ability to adapt and innovate will be crucial. The company's dual focus on x86 and ARM architectures, combined with its strong performance in data center and embedded markets, positions it well for future growth and competition in the rapidly changing technology landscape.
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