Lisa Su Responds to Musk's Nvidia Comments as AMD Stock Faces Challenges After Earnings Report

Advanced Micro Devices CEO Lisa Su recently responded to comments made by Elon Musk regarding SpaceX's commitment to exclusively using Nvidia artificial intelligence chips. Su brushed off the remarks, highlighting AMD's strong position in the market and its ongoing partnership with SpaceX. She expressed her respect for Musk and his accomplishments, emphasizing the importance of their long-term partnership. Su also noted that AMD continues to work with numerous tech companies, including those in the space sector, and is proud of the work they have done together. The company's ability to maintain relationships with various industry players demonstrates its versatility and capacity to adapt to changing market demands.

Lisa Su's comments came after Musk praised Nvidia's AI chip architecture during their earnings call, stating that it had the best design and highlighting the close cooperation between Nvidia and SpaceX. However, in May 2025, Musk mentioned that his AI company would purchase chips from both AMD and Nvidia, as well as other potential suppliers. This statement suggests that Musk's commitment to Nvidia may not be exclusive, leaving room for AMD to continue providing chips to SpaceX and other companies. Su's response to Musk's comments showcases her confidence in AMD's products and its position in the AI chip market. The company's ability to compete with Nvidia is crucial, given the growing demand for AI chips across various industries.

Nvidia's shares closed 3.4% higher on Wednesday, following Musk's comments, while AMD's stock closed 7% lower despite posting strong second-quarter earnings. Su reinforced the company's positive outlook, explaining that they have stronger customer visibility and are planning for the future. She noted that customers are looking for more compute power, and AMD is well-positioned to provide it. The company's revenue climbed 50% to $11.54 billion in the second quarter, exceeding analyst expectations. Data center sales drove much of the growth, increasing 107% annually to $6.7 billion, attributed to the sales of central processing units and graphics processing units.

AMD's strong earnings report and guidance for Data Center segment growth 'well over 100%' demonstrate the company's central position in the AI chip market. Su told analysts that server revenue is expected to grow 80% year-over-year in the second half of 2026 and more than 70% for 2027. The company is making investments across the supply chain to meet the increasing demand for its products. Su emphasized that customers are providing AMD with more opportunities to plan and invest in the entire ecosystem, enabling the company to supply products at a higher rate. This forward-thinking approach will be crucial in maintaining AMD's competitive edge in the market.

The AI boom has significantly benefited AMD, with the stock trading up 132% so far this year. Confidence in the company has been buoyed by its GPU and CPU products, which are essential for AI applications. Su stated that AI is driving a significant expansion in demand for compute power across all markets, and AMD's leadership portfolio and growing customer visibility position it well to capture this opportunity. The company's ability to deliver substantial revenue and earnings growth in the years ahead will depend on its capacity to innovate and meet the evolving demands of the AI market. As the industry continues to grow, AMD must stay ahead of the curve to maintain its competitive position.

Despite the strong earnings report, investors were not impressed, and the stock price fell. This reaction can be attributed to high market expectations, which have been fueled by the company's previous successes. The dip in AMD's stock price may present a buying opportunity for investors, as the company's fundamentals remain strong. Su's confidence in AMD's position and her emphasis on the company's ongoing partnerships and investments demonstrate a positive outlook for the future. As the AI market continues to expand, AMD is well-positioned to capitalize on the growing demand for compute power and AI chips.

The semiconductor industry is expected to be worth $2 trillion per year by 2028, with $1.4 trillion coming from AI accelerators or GPUs, according to AMD's estimates. This growth will be driven by the increasing adoption of AI technologies across various industries, including healthcare, finance, and transportation. As a leading provider of AI chips, AMD is poised to benefit from this trend. The company's ability to innovate and adapt to changing market demands will be crucial in maintaining its position in the industry. With its strong portfolio of products and growing customer visibility, AMD is well-positioned to capture a significant share of the expanding AI market.

Looking ahead, AMD must continue to invest in research and development to stay ahead of the competition. The company's commitment to innovation and customer satisfaction will be essential in driving growth and maintaining its position in the market. As the AI industry continues to evolve, AMD must be prepared to adapt and respond to changing demands. With its strong foundation and forward-thinking approach, the company is well-positioned to capitalize on the growing demand for AI chips and compute power. The future of the AI market looks promising, and AMD is poised to play a significant role in shaping its development.

In conclusion, Lisa Su's response to Musk's comments highlights AMD's confidence in its position in the AI chip market. The company's strong earnings report and guidance for future growth demonstrate its potential to capitalize on the expanding demand for compute power and AI chips. As the industry continues to grow and evolve, AMD must stay ahead of the curve to maintain its competitive edge. With its commitment to innovation and customer satisfaction, the company is well-positioned to drive growth and maintain its position as a leading provider of AI chips.

As AMD looks to the future, it must continue to invest in research and development to stay ahead of the competition. The company's ability to adapt to changing market demands and respond to evolving customer needs will be crucial in driving growth. With its strong portfolio of products and growing customer visibility, AMD is poised to capture a significant share of the expanding AI market. The company's commitment to innovation and customer satisfaction will be essential in maintaining its position as a leading provider of AI chips and driving growth in the years ahead.