“AMD’s Results Proved Our Plan To Reinvest In The Stock Was Right,” Says Jim Cramer, Crediting Lisa Su As Key Factor in Chip Maker’s Success

Jim Cramer, the outspoken host of CNBC’s Mad Money, is celebrating the recent success of Advanced Micro Devices (AMD), a company he’s been a vocal proponent of for years. In a recent episode of his show, Cramer declared, “AMD’s results proved our plan to reinvest in the stock was right,” attributing the company’s remarkable turnaround to the leadership of CEO Lisa Su.

Cramer’s bold statement comes on the heels of AMD’s Q2 2023 earnings report, which showed impressive growth across all business segments. The company delivered revenue of $5.35 billion, exceeding analysts’ expectations and representing a 23% year-over-year increase. This strong performance further solidifies AMD’s position as a major player in the semiconductor industry, challenging the long-standing dominance of Intel.

Lisa Su: The Architect of AMD’s Revival

Cramer has been a consistent admirer of Su, crediting her strategic vision and leadership with driving AMD’s impressive comeback. Su, who took the helm in 2014, inherited a company struggling to compete with Intel. However, under her leadership, AMD has undergone a complete transformation, focusing on innovation and diversification.

Key Highlights of Su’s Leadership:

• Shifting Focus to High-Growth Markets: Su recognized the burgeoning demand for powerful processors in data centers and gaming, leading AMD to invest heavily in these segments.

• Investing in Advanced Technologies: AMD made significant strides in developing cutting-edge technologies like Zen architecture and RDNA graphics. These innovations have positioned the company as a leader in performance and efficiency.

• Strong Partnerships and Acquisitions: Su forged strategic partnerships with major players like Microsoft and Google, expanding AMD’s reach and solidifying its position in critical markets. Acquisitions like Xilinx, a leading provider of programmable chips, have further diversified AMD’s product portfolio.

The Data Speaks for Itself:

AMD’s financial performance over the past few years speaks volumes about the effectiveness of Su’s leadership.

• Revenue Growth: AMD’s revenue has grown consistently since 2014, reaching $23.6 billion in 2022. This growth has been driven by strong demand for its processors in data centers, gaming consoles, and personal computers.

• Market Share Gains: AMD has steadily gained market share in the CPU market, currently holding about 25% of the market, a significant jump from the single-digit share it held a decade ago.

• Profitability: AMD has also demonstrated strong profitability, with net income reaching $5.2 billion in 2022.

The Future is Bright for AMD:

Cramer’s confidence in AMD isn’t misplaced. The company continues to innovate and expand into new markets. Its Zen 4 architecture has been a game-changer, delivering unprecedented performance in both CPUs and GPUs. AMD is also poised to benefit from the growing demand for AI chips, a market where it is actively investing.

Key Growth Drivers for AMD:

• Data Center Growth: The global data center market is expected to grow at a CAGR of 12.5% from 2022 to 2027. AMD is well-positioned to capitalize on this growth with its high-performance EPYC processors.

• Gaming Market Expansion: The gaming market is a massive and rapidly growing segment. AMD’s Ryzen processors and Radeon graphics cards are highly sought-after by gamers, fueling the company’s growth.

• AI and Machine Learning: AMD is aggressively pursuing the AI chip market, leveraging its expertise in high-performance computing and graphics processing.

Conclusion:

Jim Cramer’s bullish stance on AMD is grounded in the company’s impressive performance and its bright future prospects. Lisa Su’s leadership has been instrumental in AMD’s turnaround, driving innovation, expanding market share, and delivering strong financial results. With a focus on emerging technologies and a strong leadership team, AMD is well-positioned to continue its growth trajectory and cement its position as a dominant force in the semiconductor industry.