AMD's Su dismisses AI spending fears as stock rallies: 'It's the right gamble'

Lisa Su, the CEO of Advanced Micro Devices (AMD), addressed concerns regarding the hefty investments made by Big Tech companies during a recent CNBC interview on 'Squawk Box.' She reassured investors that these expenditures are essential for propelling innovation forward, stating, "I don't think it's a big gamble; I think it's the right gamble." Su noted that many of AMD's hyperscaler clients have significantly increased their spending over the past year, marking a pivotal moment in technology that promises substantial returns. This confidence comes as major tech firms report over $380 billion in AI-related investments in their latest earnings announcements, striving to enhance infrastructure in response to escalating demand. In a separate discussion with analysts, Su projected that AMD's revenues could soar by 35% annually over the next three to five years, driven by an 'insatiable' appetite for AI chips. Following her optimistic insights, AMD's shares surged by more than 6%, reflecting investor confidence in the company's future prospects.