AMD CEO Highlights 'Huge' AI Opportunity: 'It's Going To Change Everything We Do'

Advanced Micro Devices Inc AMD CEO Lisa Su highlighted how large the artificial intelligence (AI) opportunity is in front of the chipmaker.

The hype, however, did little to boost AMD’s stock price, which slid on Wednesday, Jan. 31, after the company reported fourth-quarter (Q4) results.

AMD beat Q4 revenue estimates and turned in earnings per share numbers that were in line with expectations.

The company’s shares have nearly doubled over the last year, largely driven by its positioning in the AI space. AMD raised its AI accelerator guidance significantly Tuesday night and forecasted a total addressable market of $400 billion by 2027.

“High-performance computing is driving everything we do and … the $400 billion TAM in 2027 is about changing the way we do everything,” Su said Wednesday on CNBC’s Squawk On The Street. “So think about what AI is. I would say it’s the most important technology that has come over the last 50 years.”

AI is going to change everything we do. It will improve how we live and work and expand our capabilities, she said, adding that AI will eventually change every aspect of how we run businesses and make decisions.

“Every single person’s life is going to be touched by AI, so yeah, I feel like this is a huge market opportunity,” Su stressed.

Su told CNBC that AI models are still in the early stages of training and will improve dramatically over time. AMD is working on building the foundation by improving processing and computing capabilities that will enable AI users to have better experiences and get better results from large language models, she said.

The AMD CEO noted that she believes there is room for numerous companies to succeed in the AI realm, given the massive demand for AI and her TAM predictions for the coming years.

AMD increased its expectations for AI chip revenue this year from $2 billion to more than $3.5 billion, Su said.

“This is the very beginning … with such a large market, you’re going to need a lot of different solutions,” she added.

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AMD Price Action: Although well off the lows of the day, AMD shares were down 2.06% at $168.48 at the time of writing, according to Benzinga Pro.

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