Matt Frankel

And Lisa Su, the AMD CEO, said AMD expects server growth to accelerate and that the company should deliver tens of billions of dollars in just data center AI revenue next year alone.

But really the X factor here, and this is kind of what I meant by the AI spend just doesn't tell the full story,

is the strong CPU business that AMD has.

That's a big differentiator from Nvidia.

AMD is a distant second to Nvidia on the GPU side of the business, which is to this point has been generally synonymous with data center chips.

But AMD is a CPU leader, and this is becoming an increasingly important part of AI compute power, especially in the agentic age that we're approaching.

So although the data center segment is the main story here, it's also important to note that the client segment, which includes the chips that AMD puts in PCs and laptops and things like that,

That grew rapidly and indicated that the AMD Ryzen processors continue to take market share from Intel.

So that just kind of underscores the strength of their CPU business and why the market might be so optimistic on them right now.

There's a lot to look forward to with AMD later this year.

They're going to start shipping their Helios full rack system for AI data centers.

That's a direct competitor with products NVIDIA offers and charges about $3 million a piece for.

And OpenAI and Meta have already placed large orders.

Meta in particular is an especially interesting deal because it's literally one of the single largest AI infrastructure deals that has ever been announced so far.

So there's a lot to like.

It's tripled over the past year, but it's for a reason.

I do see that as a problem.

I don't see it as a problem yet.

I'll put it that way.

So like I said, arm holdings is a different animal because they're building this chip business from scratch, essentially.