Advanced Micro Devices (AMD) has historically operated in the shadow of Intel (INTC) and, although it has been able to break away from those shackles thanks to a technology lead, it is now working hard to do the same with Nvidia (NVDA). That’s easier said than done, though, as Nvidia is unlikely to mirror Intel’s past missteps. This means what AMD CEO Lisa Su has to do is continue the fight. Most of the past week has been dominated by videos of Nvidia CEO Jensen Huang enjoying street food in China. Little do people know that Su was also recently on a mission to the country, just not for the food.
Su recently visited China to talk to some of AMD’s largest customers. She then stopped in Taiwan to make sure the supply chain serving these customers was working fine — and when I say working fine, I mean flawlessly executing the unprecedented CPU demand with which manufacturers are currently dealing. Su confirmed as much when she said CPU demand is significantly higher than what even management anticipated just 12 months ago. That is exactly why Su went to check on how the world’s largest contracted chipmaker, Taiwan Semiconductor (TSM), is able to handle the orders coming its way from AMD.
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AMD also intends to invest more than $10 billion in Taiwan’s AI sector. The investments are focused on advanced packaging and manufacturing for rack-scale systems. While we do not know whether these companies will be able to handle AMD’s orders, we do know that Su is exactly where she needs to be for AMD. If agentic AI is to lead the future of the company, then the CEO is taking exactly the right steps to benefit shareholders down the road.
About Advanced Micro Devices Stock
Based in Santa Clara, California, AMD is a leading semiconductor company specializing in high-performance computing and graphics solutions. The company operates through its Embedded, Data Center, and Client and Gaming segments, with its broad product portfolio including microprocessors, graphics processors, and system-on-chip (SoC) solutions.
AMD has delivered an exceptionally strong performance over the past year, significantly outpacing the S&P 500 ($SPX), up by 352% compared to the index’s return of 30% during the same period. This strong rally reflects growing investor confidence in AMD shares. The momentum has also carried into this year as well, with the stock more than doubling year-to-date (YTD), up by 134%.
