AMD CEO sees PC market restoration in 2nd half as AI demand ramps

Superior Micro Units CEO Lisa Su stated she foresees the PC market to develop seasonally within the second half of the 12 months with higher stock ranges throughout the availability chain.

The large chip maker executed nicely within the second quarter, launching a number of management merchandise, considerably increasing AI engagements and ramping the newest Zen 4 Epyc and Ryzen product households, Su stated in a name with analysts.

Whereas the second quarter income noticed a decline of 18% to $5.4 billion in comparison with a 12 months in the past, AMD launched quite a few new merchandise amid the general financial downturn.

Gross sales had been flat sequentially as PC consumer and information heart section progress was offset by anticipated declines within the gaming and embedded segments.

AI buyer engagements grew by greater than seven instances sequentially as a number of prospects initiated or expanded packages supporting future deployments of Intuition MI250 and MI300 {hardware} and software program at scale, Su stated.

Su stated that semi-custom SoC gross sales had been sturdy within the quarter as Microsoft and Sony had wholesome console
demand primarily based on improved retail availability globally and the launches of recent triple-A video games. That’s going to be excellent news for the general recreation trade.

In cloud, 30 new AMD situations launched within the second quarter with a number of “Genoa” situations
introduced by AWS, Alibaba, Microsoft and Oracle. Genoa delivers as much as 1.9 instances extra efficiency in enterprise and cloud functions and 1.8 instances extra performance-per-watt than the competitors, making it by far the trade’s highest efficiency and most effective server processor, Su stated.

Su stated she expects Epyc server chip income to develop by a double-digit proportion sequentially within the third quarter led by the increasing 4th Gen EPYC CPU ramp.

In supercomputing, Epyc and Intuition processors proceed to be the options of alternative for probably the most highly effective supercomputers on this planet, powering 121 of the quickest techniques on the newest Top500 checklist and 7 of the ten most effective techniques on the Green500 checklist, Su stated.

“In AI, we made sturdy progress within the second quarter as we met key {hardware} and software program milestones to handle the rising buyer pull for our information heart AI options,” Su stated.

She stated AMD’s AI technique is targeted on three areas. First, AMD will ship a broad portfolio and multi-generation roadmap of management GPUs, CPUs and adaptive computing options for AI inferencing and
coaching. Second, AMD will lengthen the open and confirmed software program platform AMD has established that allows AI {hardware} to be deployed broadly and simply. And third, increase the deep and collaborative
partnerships AMD has established throughout the ecosystem to speed up deployments of AMD-based AI options at scale.

“We delivered on all three fronts within the second quarter,” she stated.

On the {hardware} facet, AMD introduced new Intuition MI300X GPUs designed to be the world’s most superior accelerators for generative AI. MI300X combines next-gen CDNA 3 structure with the trade’s largest reminiscence footprint and quickest reminiscence bandwidth, vital elements in AI inferencing efficiency. Buyer curiosity in our Intuition MI300A and MI300X GPUs may be very excessive, she stated. The merchandise will ship within the fourth quarter.

As for PCs, Su stated, “We anticipate our consumer section will develop within the seasonally stronger second half of the 12 months primarily based on the power of our product portfolio and elevated adoption of our Ryzen 7000 CPUs, together with the ramp of our Ryzen 7040 cell CPUs that ship management efficiency and vitality effectivity and are the trade’s first x86 processors with a devoted AI engine.”

She added, “Going ahead, we see AI as a big PC demand driver as Microsoft and different giant software program suppliers incorporate generative AI into their choices. We’re executing a multi-
generational Ryzen AI processor roadmap, which along with our ecosystem companions, will essentially change the PC expertise.”

In gaming graphics, AMD expanded its Radeon 7000 GPU collection within the second quarter with the
launch of our mainstream RX 7600 playing cards for 1080P gaming. The corporate is on-track to additional increase our RDNA 3 GPU choices with the launch of recent fanatic class Radeon 7000 collection playing cards within the third quarter.

For the remainder of the 12 months, Su stated, “Within the information heart market, we see a combined atmosphere as AI deployments are increasing, nonetheless cloud prospects proceed optimizing their information heart compute and enterprise prospects stay cautious with new deployments. Towards this backdrop, we anticipate sturdy progress pushed by greater 4th Gen EPYC and Ryzen 7000 processor gross sales and preliminary shipments of our Intuition MI300 accelerators.”

She added, “Long term, whereas we’re nonetheless within the very early days of the brand new period of AI, it’s clear that AI
represents a multi-billion greenback progress alternative for AMD throughout cloud, edge and an more and more various variety of clever finish factors. Within the information heart alone, we anticipate the marketplace for AI accelerators to achieve over $150 billion by 2027.”