How Lisa Su Has Positioned AMD to Be a Big AI Winner and Why the Stock Is a Buy

In the early days of artificial intelligence (AI), Advanced Micro Devices (NASDAQ: AMD) looked like it would be nothing more than an afterthought to the dominant Nvidia . However, AMD CEO Lisa Su has managed to position the company to be a big AI winner in the coming years.

This started with the bold move of striking a deal with OpenAI, where Su was willing to give the frontier AI model company an up to 10% stake in AMD. In exchange, OpenAI committed to buying 10 gigawatts of AMD's graphics processing units (GPUs) to run inference for its models. It was a deal worth in excess of $100 billion, but more importantly, the size of the commitment would require OpenAI to incorporate its ROCm software platform into its systems. Meta Platforms would sign a similar deal shortly afterward.

At the same time, Su bet that AMD's innovative chiplet design, which is devised to function as part of a larger interconnected system and could be packaged with more memory, would become ideal for inference, a market expected to grow larger than training. She also went out and acquired ZT Systems so the company could start selling complete rack systems.

Continue reading

Indexed and credited by AIPROPX. Originating outlet: The Motley Fool. Open at source →