'Great Technology' Is How AMD Differentiates Itself, CEO Tells Cramer

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. 

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