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AMD CEO Su 'Very Pleased' With Q2 Report, Says 'People Are Still Getting To Know AMD'

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AMD CEO Su 'Very Pleased' With Q2 Report, Says 'People Are Still Getting To Know AMD'

The Street's reaction to Advanced Micro Devices, Inc. (NASDAQ: AMD) second-quarter report Tuesday was mixed: the stock traded lower by 8%, as investors were likely concerned with a poor outlook.

CEO Dr. Lisa Su was a guest on CNBC's "Squawk on the Street" segment to discuss the results and outlook with Jim Cramer.

'Very Pleased' With Results

Su said she is "very pleased" with AMD's performance in the second quarter, highlighted by sequential 20% growth in revenue and the launch of multiple new products across PCs, data centers and graphics.

The downward revision to the chipmaker's outlook is due to weakness in gaming consoles, which is to be expected after the announcement of new consoles from Microsoft Corporation (NASDAQ: MSFT) and Sony Corp (NYSE: SNE), she said. 

"For us, there is new demand," she said. 

"People want to build new data centers [and] people want to ensure they get better capex efficiency. People want new gaming products. And so as a result, I believe if you have strong product portfolio you are going to see growth, even though there is a lot of volatility in the market."

PC Market

The overall PC market is "good," and AMD performed "very, very well," the CEO said.

The company benefited from notable growth in notebooks and new platforms coming online, she said.

"We gained five or six points of market share over the last five or six quarters and I'm even more excited about what we see into the second half of 2019 and into 2020. From a standpoint of market share, I think we are still underrepresented in the market [and] I think people are still getting to know AMD and getting to know what we can offer to the market."

China

The semiconductor industry as a whole continues to monitor developments in China very closely, and in AMD's case, it stopped shipping certain products to customers on the no-trade entity list, Su said.

The company is backed by other "strong products" it continues to ship to other Chinese customers, which adds confidence to the back half of 2019, she said. 

"It's a complex world out there. Clearly there are a number of issues with China as it relates to trade as it relates to national security concerns," Su said. "We fully understand that. Our goal is to have a diversified business, one that can turn on a dime."

AMD shares were falling by 9.48% to $30.66 at the time of publication Wednesday.

Related Links:

71 Stocks Moving In Wednesday's Mid-Day Session

AMD Drops On Mixed Quarter, Analysts Weigh In

 

Posted-In: China CNBC gaming Jim Cramer Lisa Su PCsTech Media Best of Benzinga

 

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