AMD Making 'Great Progress' With AI Giants: Jim Cramer Says AI Chip Story Is 'Not Just Jensen Huang'

Although NVIDIA Corp (NASDAQ:NVDA) has dominated the AI chip market to date, Advanced Micro Devices, Inc. (NASDAQ:AMD) CEO Lisa Su believes AMD will continue to see significant growth in the AI space — and she’s not alone.

Wednesday on CNBC’s “Squawk On The Street,” Jim Cramer suggested AMD will play a huge role in the future of AI.

What To Know: Cramer was an early supporter of Nvidia and a longtime fan of CEO Jensen Huang. The Jim Cramer Charitable Trust also owns shares of AMD as Cramer believes more than one chipmaker will rise in the AI revolution.

“One of the reasons that we own your stock for the Charitable Trust and have for some time is we are firm believers that AI is so big that it actually has room for two players, that it’s not just Jensen Huang and then nobody,” Cramer said.

“Could you make the case that actually you are a strong number two and getting stronger?”

AMD CEO On AI: Su responded to Cramer, noting she is a “huge believer” in AI. The AMD CEO predicted that we are at the beginning of an AI supercycle and that AI will be used in “every aspect of computing.”

“Whether you’re talking about the large clouds, enterprises, you’re talking about the edge or you’re talking about PC clients, you need all different sizes of compute for that and that’s exactly what we have,” Su said.

AMD reported third-quarter results late Tuesday. Revenue of $6.8 billion came in ahead of estimates of $6.71 billion as Data Center sales jumped 122% year-over-year.

Check This Out: What’s Going On With Chip Stocks Nvidia, Broadcom, Taiwan Semi, Micron And Others Wednesday?

Su told CNBC that when AMD introduced its MI300 AI GPUs near the end of last year, the company forecasted full-year 2024 sales of approximately $2 billion. Now the company’s guidance is calling for sales of more than $5 billion.

Over the past year, AMD has advanced partnerships and made “great progress” with Meta, Microsoft, Oracle and a number of other AI players, Su said.

“And we’re going to continue to do that, you know, going forward. So I think AI is really at the beginning and our goal is to be a very, very strong overall compute provider into that space,” Su said.

AMD Price Action: AMD shares were down 9.54%, trading at $150.47 at the time of publication Wednesday, according to Benzinga Pro.

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