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Advanced Micro Devices (NASDAQ:AMD) has seen its market share grow as a provider of infrastructure for data centers grow from single digits to about 30% in just a few years.
Data center infrastructure has expanded to more than 50% of AMD’s revenue in its latest quarterly earnings. Its record $2.8B during the second quarter represented an 115% year-over-year leap.
AMD also announced last month it was acquiring ZT Systems, which will further enhance its ability to provide infrastructure for hyperscalers and artificial intelligence.
“This AI technology arc is really a once in 50 years type of thing, so we have to invest, and we see a huge opportunity before us,” said AMD CEO Lisa Su during the Goldman Sachs Communacopia + Technology conference on Monday.
“This is a computing super cycle,” she added. “There is no one player or architecture that will take over. We have been working to be the best computing partner to the ecosystem.”
Speaking of AI, Su said she expects the adoption of AI PCs to pick up in 2025. She said some investors mistakenly believed the AI PC demand would explode in 2024.
“I believe we are at the start of a multi-year AI PC cycle,” Su said. “I think you guys are a little fast on that developing. We never said it would take off in 2024. You can use AI to make PCs more useful, so why wouldn’t you want an AI PC?”
“This is the beginning of the cycle,” she added. “Next year, when you talk about the commercial refresh cycle, AI PCs will be part of that.”