Advanced Micro Devices (AMD) CEO Lisa Su told CNBC on Wednesday that the company's massive forecast revision was driven by a surge in demand for central processing units (CPUs), particularly from the growth of agentic artificial intelligence.
Su highlighted that the company's first-quarter earnings were strong enough to warrant doubling its long-term forecast.
The stock responded with a 15% surge following the announcement, reflecting renewed investor confidence in AMD's position in the AI-driven computing landscape.
The stock responded with a 15% surge following the announcement, reflecting renewed investor confidence in AMD's position in the AI-driven computing landscape.
Su's comments suggest that the company is seeing a shift in the market, with agentic AI applications driving demand for CPUs in addition to GPUs.
This development comes amid a broader trend in the semiconductor sector, where companies are increasingly capitalizing on the AI boom.
Recent gains in the sector have been fueled by strong guidance and demand signals from key players, with Intel and Super Micro Computer also seeing significant stock moves in recent days.