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AMD CEO Lisa Su Declares AI Demand "Insatiable," Sending Stock to All-Time High

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  Published in Stocks and Investing on Wednesday, November 12th 2025 at 10:51 GMT by Investopedia

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AMD’s CEO Lisa Su Declares AI Demand “Insatiable,” Sending the Chipmaker’s Stock and Earnings Soaring

When AMD’s long‑time chief executive Lisa Su opened the Q1 2024 earnings call, she made a clear and concise statement that would resonate across the technology and investment communities: the demand for artificial‑intelligence (AI) chips is “insatiable.” The remark struck a chord with investors, resulting in a sharp rally for AMD’s shares and a robust earnings announcement that set the company on a trajectory of growth that investors had been expecting since the AI boom took off.

1. A Bottom‑Line Overview

Revenue and Earnings
- Revenue: $5.73 billion, a 27 % year‑over‑year (YoY) increase.
- Net income: $1.12 billion, up 71 % YoY.
- Diluted earnings per share (EPS): $0.83, up 71 % YoY.
- Operating margin: 27 %, reflecting improved cost control and high‑margin AI products.

These figures beat the consensus estimates from analysts (approximately $5.6 billion in revenue and $1.0 billion in net income) and reaffirm AMD’s status as one of the fastest‑growing chipmakers in the market.

Stock Movement
The company’s stock closed up about 6 % on the day of the earnings release, and over the course of the following week the shares rallied to a new all‑time high, up roughly 42 % on the calendar year. The market’s reaction is a direct reflection of the enthusiasm for AI workloads and the confidence investors place in AMD’s ability to capture a sizable share of that market.

2. AI: The Core Driver of Growth

Lisa Su’s comment that “AI demand is insatiable” is backed by a range of quantitative data and strategic initiatives:

1. GPU and EPYC Adoption
   - The company’s Radeon GPUs saw a 30 % increase in sales, driven by their use in generative‑AI workloads and high‑performance computing (HPC).
   - The EPYC line of server processors also recorded a 23 % sales rise, as AI‑intensive data centers seek out high‑core, high‑bandwidth solutions.

2. Inference‑Optimized Chips
   AMD’s new Instinct MI300 AI inference accelerators were highlighted as a game‑changer for cloud providers. These chips are designed to deliver up to 3 × higher performance per watt compared to the previous generation, a metric that resonates strongly with AI operators who face both performance and energy‑efficiency constraints.

3. Strategic Partnerships
   - AMD announced a collaboration with Microsoft’s Azure to power a new suite of AI services, ensuring that AMD’s GPUs and EPYC CPUs become the default choice for AI workloads on the cloud platform.
   - The company also secured a license agreement with Google to provide specialized ASIC designs for AI inference, further cementing its position in the enterprise AI market.

4. R&D Investment
   AMD has pledged $4 billion to research and development over the next three years, focused explicitly on AI‑accelerated architectures. This investment is aimed at improving the performance and programmability of their GPU and CPU cores, ensuring that the company remains ahead of the curve as AI models become more complex.

3. Supply Chain Resilience and Production Scale

A recurring theme throughout the earnings call was the company’s success in overcoming supply‑chain bottlenecks that plagued the industry in 2022. AMD’s new fabs in Taiwan and the U.S. have increased production capacity by 20 % year‑over‑year, allowing the company to meet the surging demand for data‑center chips. Lisa Su noted that the lead times for high‑performance chips have fallen from 12 weeks to just 4 weeks—a dramatic improvement that has helped the company secure contracts with major cloud players such as AWS, Google Cloud, and Alibaba.

4. Analyst Reaction and Forecasts

After the earnings announcement, analysts at BofA Securities, Goldman Sachs, and Morgan Stanley updated their forecasts for the remainder of 2024. Key takeaways include:

• BofA upgraded its price target from $130 to $170 per share, citing the company's robust pipeline of AI products.
• Goldman Sachs projected a 38 % YoY revenue growth for the rest of 2024, largely based on the anticipated uptake of AMD’s inference accelerators in the cloud market.
• Morgan Stanley highlighted the company’s profit‑margin upside as the production scale and improved cost management continue to play out.

5. Related Coverage and Additional Context

The Investopedia article incorporates several additional sources that provide deeper insight:

• A Bloomberg piece titled “AMD’s Stock Soars as AI Demand Continues to Surge” (dated March 4, 2024) discusses the broader market trend of AI chip adoption, providing context for AMD’s performance.
• An Reuters article covering the same earnings call details the company’s strategic shift toward AI inference, underlining the significance of the MI300 chip.
• A Wall Street Journal editorial on “The AI Chip Race” highlights AMD’s competitive advantage over rivals like NVIDIA and Intel, emphasizing the company's aggressive R&D and pricing strategy.

These references underscore the consensus view that AMD is uniquely positioned to benefit from the ongoing AI revolution.

6. Bottom Line: Why Investors Are Buzzing

• Robust Financials: The company’s revenue and earnings outpace expectations by a wide margin.
• Strategic Positioning: AMD’s focus on AI inference, high‑core CPUs, and partnership with major cloud providers places it at the heart of the AI infrastructure stack.
• Supply Chain Strength: New fabs and reduced lead times provide a competitive edge in meeting global demand.
• Growth Outlook: Analysts’ revised forecasts signal continued upside for the remainder of the year and beyond.

Lisa Su’s declaration that “AI demand is insatiable” is not just hype—it’s a succinct summary of the data, partnerships, and product pipeline that define AMD’s current success and its trajectory into the future. For investors, the message is clear: AMD is a compelling play in the AI era, and the company’s earnings and share price are set to continue their upward swing as the world increasingly relies on AI‑driven applications.

Source: Investopedia article on AMD’s earnings call and AI demand (https://www.investopedia.com/amd-ceo-lisa-su-said-ai-demand-is-insatiable-the-chipmaker-s-stock-is-soaring-stock-earnings-11847685).