2019 will prove to be a "big year" for Advanced Micro Devices, Inc. AMD, as the company is setting the stage for multiple product launches, CEO Lisa Su told CNBC's Jim Cramer in a Wednesday interview.
What Happened
AMD has "a lot of things in the hopper" and the company is set to oversee a "significant product cycle" over the next three to five years, Su said in the interview. One of the products in its pipeline: a computer chip that will help power Sony Corp SNE's PlayStation 5. Another notable win in the gaming space is AMD's powering of Alphabet Inc GOOG GOOGL's new gaming service Stadia, Su said.
While gaming represents a "good secular" growth market for AMD, the company's semiconductors also help power PC and data centers, the CEO said. While up against tough competition, AMD has notched market share gains by focusing on addressing high-performance computing needs, she said.
Why It's Important
AMD's recent momentum sets the company up to record revenue growth in 2019, Su said. The company sees "tremendous excitement" around its products, including the Ryzen microprocessor for PCs and the Epyc processor for data — both of which she said will be launched in the coming months.
"With all of the data out there and all of the compute needs, it is a great market, and it really appreciates great technology," she said. "That's where we differentiate ourselves."
What's Next
Gross margin expansion is something AMD is working to achieve, and the first quarter showed a five-point year-over-year expansion, Su said. As AMD's products see increased traction over time, incremental margin expansion is expected, she said.
The company is "making good progress" toward hitting its long-term 40-45-percent margin rate, the CEO said.
Related Links:
Analysts Impressed With AMD's Execution, Pipeline Following Solid Q1 Results
RBC Says AMD Is High Beta Name To Own For 2019: 'It's Profitable To Buy The Stock On Down Days'
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