WEBVTT - AMD CEO Lisa Su on the Chipmaker's AI Forecast 0:00:00.080 --> 0:00:13.400 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.440 --> 0:00:17.280 from coast to coast with Caroline Hide in New York 0:00:17.560 --> 0:00:19.560 and Eva low in Sent Francisco. 0:00:22.280 --> 0:00:24.079 This is Bloomberg Tech coming up. 0:00:24.120 --> 0:00:27.160 The White House says Apple will commit to spend another 0:00:27.360 --> 0:00:30.200 one hundred billion dollars on domestic manufacturing. 0:00:30.400 --> 0:00:33.320 Plus, we speak with AMD CEO Lisa Sue on the 0:00:33.360 --> 0:00:35.919 back of the company's earnings. 0:00:35.440 --> 0:00:39.000 And Bloomberg reports Open aiyes in talks for a potential 0:00:39.080 --> 0:00:42.800 insider share sale that would value the company at five 0:00:43.080 --> 0:00:46.200 hundred billion dollars extraordinary valuations. 0:00:46.280 --> 0:00:48.520 I turn my attention to the companies that are already 0:00:48.520 --> 0:00:51.239 public and already reporting earnings ed and actually I'm on 0:00:51.280 --> 0:00:53.200 the downside. They're all in the red at the moment. 0:00:53.240 --> 0:00:56.040 Quickly wit through what AMD is up to down the worst. 0:00:56.040 --> 0:00:59.720 It's October twenty twenty four. This is the China concerns, 0:01:00.120 --> 0:01:02.279 the idea of when we're going to seem I three 0:01:02.400 --> 0:01:05.440 or eight actually getting into the hands of Chinese customers, 0:01:05.600 --> 0:01:08.080 non enough charity. We dig into that with Lisasu a little. 0:01:07.920 --> 0:01:08.960 Bit in the show. 0:01:08.959 --> 0:01:11.959 Because remember the earnings did beat on expectations thirty two 0:01:11.959 --> 0:01:14.440 percent growth and revenue. I'm looking at Disney also beating, 0:01:14.840 --> 0:01:17.280 but again there is a concern perhaps around age old 0:01:17.400 --> 0:01:21.880 entertainment movies about TV that didn't manage to live up 0:01:21.880 --> 0:01:24.919 to expectations, held back some of those profitability growth targets. 0:01:24.959 --> 0:01:27.160 We're looking at Disney off by three percent, uber also 0:01:27.200 --> 0:01:28.240 by two point four percent. 0:01:28.480 --> 0:01:30.320 It too be It too actually. 0:01:30.120 --> 0:01:32.280 Said they're going to be doing twenty billion dollar buy back, 0:01:32.600 --> 0:01:34.679 but they're going to have to invest in autonomous and 0:01:34.720 --> 0:01:37.600 maybe that's the insecurity here, Ed, But what do you got? 0:01:37.720 --> 0:01:39.200 Okay, let's get to that Apple news. 0:01:39.240 --> 0:01:41.240 The stocks actually just come off session highs, but it's 0:01:41.280 --> 0:01:44.080 on track for its biggest jump since early May. One 0:01:44.200 --> 0:01:48.400 hundred billion dollars in additional investment in US manufacturing and 0:01:48.440 --> 0:01:51.200 supply chain. But here's the thing, that's all coming from 0:01:51.240 --> 0:01:53.280 the White House. So let's get out to Washington, DC 0:01:53.640 --> 0:01:56.720 and bloombergs Tyler Kendall, who joins us from the White 0:01:56.760 --> 0:01:59.400 House as we wait for I guess the Apple side 0:01:59.520 --> 0:02:00.320 of what's happen happening? 0:02:00.360 --> 0:02:01.680 But Tyler, what do we need to know? 0:02:02.800 --> 0:02:03.080 Yeah? 0:02:03.120 --> 0:02:05.320 Hey, Ed, Well, the White House says that this one 0:02:05.400 --> 0:02:08.840 hundred billion dollar investment pledge is expected to go towards 0:02:08.880 --> 0:02:12.400 a new manufacturing program that would in theory bring more 0:02:12.440 --> 0:02:15.680 of Apple supply chains to the US, and the official 0:02:15.720 --> 0:02:19.600 says that this brings the cumulative investment from Apple to 0:02:19.720 --> 0:02:22.680 six hundred billion dollars. Because, as you well know and mentioned, 0:02:22.840 --> 0:02:25.760 this bill A builds on a previous five hundred billion 0:02:26.120 --> 0:02:28.680 dollar pledge from the company over four years. But with 0:02:28.720 --> 0:02:31.919 that pledge we saw some really specific investment angles, including 0:02:32.080 --> 0:02:34.200 that some of it would go towards building a factory 0:02:34.200 --> 0:02:37.400 in Texas that holds AI servers. Part of it would 0:02:37.400 --> 0:02:40.480 go towards twenty thousand jobs in the US really focused 0:02:40.480 --> 0:02:43.480 on training as well as research and development. Now, our 0:02:43.520 --> 0:02:46.920 reporting indicates that while this investment is substantial, it likely 0:02:46.960 --> 0:02:50.720 falls short for the full production shift that this White 0:02:50.720 --> 0:02:53.639 House really wants to see, though it is worth pointing 0:02:53.639 --> 0:02:56.880 out twenty four percent of Apple suppliers are based in 0:02:57.040 --> 0:03:00.120 the US already, the most of any country. Still, well, 0:03:00.200 --> 0:03:02.079 we'll have to see if it's enough for President Trump 0:03:02.280 --> 0:03:05.200 to perhaps give some sort of a reprieve when it 0:03:05.240 --> 0:03:08.000 does come to the company. We know that the CEO team, 0:03:08.000 --> 0:03:11.200 Tim Cook, has been lobbying for some sort of carve 0:03:11.240 --> 0:03:14.080 out here, considering that earlier this year, President Trump had 0:03:14.080 --> 0:03:17.359 threatened a twenty five percent tariff ed if Apple did 0:03:17.360 --> 0:03:19.400 not move production to the United States. 0:03:19.880 --> 0:03:22.840 Amid all of this, of course, is that threat on 0:03:22.960 --> 0:03:26.560 Apple exclusively, but also there's threats on high tariff for India, 0:03:26.600 --> 0:03:29.160 where they've been shifting some of their supply chain to Tyler. 0:03:29.600 --> 0:03:32.359 As we know, it is incredibly difficult, if not nigh 0:03:32.400 --> 0:03:35.080 on impossible for them to really bring production of the 0:03:35.120 --> 0:03:37.640 iPhone to the United States. Do you think that that's 0:03:37.640 --> 0:03:41.560 starting to curry favor or at least appreciation in the administration. 0:03:42.080 --> 0:03:44.760 Right Well, today we saw really an escalation when it 0:03:44.800 --> 0:03:47.280 did come to India rate. President Trump now posing an 0:03:47.320 --> 0:03:51.360 additional twenty five percent tariff over India's imports of Russian 0:03:51.480 --> 0:03:53.520 energy supply, which would bring the tear freight on that 0:03:53.600 --> 0:03:56.840 country up to fifty percent. They're expected to be stacked 0:03:56.840 --> 0:03:58.880 on top of each other. That additional rate to go 0:03:58.920 --> 0:04:00.800 into effect in the next twenty one day, So we'll 0:04:00.840 --> 0:04:03.080 have to see if there's some sort of negotiation that 0:04:03.200 --> 0:04:05.640 happens here. It is clear though that the administration is 0:04:05.680 --> 0:04:08.200 going to like this investment. The White House is already 0:04:08.200 --> 0:04:11.120 out touting it because they really want to start to 0:04:11.160 --> 0:04:13.400 see these funds coming in. And if you look at 0:04:13.400 --> 0:04:16.000 all the unique deals perhaps that we've gotten from our 0:04:16.040 --> 0:04:18.839 training partners so far, a lot of them do ultimately 0:04:18.880 --> 0:04:21.080 have to do with investment funds. And the second thing 0:04:21.080 --> 0:04:22.680 that I'll also put on your radar is that we 0:04:22.720 --> 0:04:26.080 are expecting those sector specific tariffs to come down soon. 0:04:26.120 --> 0:04:28.200 This administration has said we can see them as soon 0:04:28.240 --> 0:04:30.080 as next week when it comes to chips. But really 0:04:30.160 --> 0:04:32.359 important to keep in mind that the Section two thirty 0:04:32.360 --> 0:04:35.640 two investigations, yes, are into semiconductors, but they're into the 0:04:35.800 --> 0:04:38.440 entire supply chain, which means that we could really see 0:04:38.640 --> 0:04:39.880 some wide ranging impacts. 0:04:40.120 --> 0:04:40.440 That's far. 0:04:40.440 --> 0:04:43.160 One hundred billion dollar extra commitment adds one hundred and 0:04:43.200 --> 0:04:45.479 twenty billion dollars in terms of market cap to Apple 0:04:45.520 --> 0:04:48.760 on the day, Tyler Kendall, thank you. Let's check in 0:04:48.839 --> 0:04:52.240 on other companies now. Earnings Disney lower after the media 0:04:52.279 --> 0:04:56.480 company reported third quarter revenue actually coming in slightly below 0:04:56.520 --> 0:05:01.360 expectations but highlighting strength and streaming and the sparks business bugs. 0:05:01.400 --> 0:05:04.039 Felix Jullett joins us for more look, they were ever 0:05:04.120 --> 0:05:07.080 so slightly amiss in terms of general revenue growth of 0:05:07.160 --> 0:05:09.159 just two percent, But it really seems to be the 0:05:09.160 --> 0:05:11.080 old school part of the business they let them down. 0:05:12.520 --> 0:05:14.920 Yeah, the traditional part of the business in terms of 0:05:15.279 --> 0:05:18.880 you know, the movie studio, the cable and broadcast channels 0:05:19.240 --> 0:05:24.039 are all you know, continuing to show decline and that 0:05:24.120 --> 0:05:26.320 you know has been offside someone by the growth in 0:05:26.440 --> 0:05:29.000 streaming and parks, which have been very strong. 0:05:30.160 --> 0:05:30.640 Felix. 0:05:30.960 --> 0:05:31.080 Uh. 0:05:31.480 --> 0:05:36.320 Streaming is many parts. But listening to Bob Iiger on 0:05:36.400 --> 0:05:39.480 the Cool Sports, I just want to recap his position 0:05:39.520 --> 0:05:41.320 on ESPN because I think it's worth discussion. 0:05:41.360 --> 0:05:41.840 Listen to this. 0:05:42.760 --> 0:05:46.520 We're building ESPN into the pre eminent digital sports platform 0:05:46.880 --> 0:05:51.120 with our highly anticipated Director consumer sports offering launching on 0:05:51.160 --> 0:05:54.280 August twenty first, and there are just announced plans with 0:05:54.360 --> 0:05:58.680 the NFL that will expand ESPN's programming and content offerings 0:05:58.720 --> 0:05:59.680 for fans. 0:06:00.600 --> 0:06:02.080 August twenty first, not far away. 0:06:02.120 --> 0:06:04.680 Like how big a piece of the strategy is sports 0:06:04.720 --> 0:06:05.919 and streaming and combination? 0:06:06.880 --> 0:06:09.160 Oh, a huge part of the strategy. I mean, they 0:06:09.200 --> 0:06:12.040 want to grow their advertising revenue and streaming. To do that, 0:06:12.120 --> 0:06:14.720 you need live events. There's nothing bigger in live events 0:06:14.760 --> 0:06:17.279 than the NFL. This deal with the NFL that they 0:06:17.320 --> 0:06:20.960 announced today, NFL gets a stake in ESPN and ESPN 0:06:21.080 --> 0:06:24.680 gets control of some of the NFL's media properties, including 0:06:24.800 --> 0:06:28.440 the Red Zone NFL Network, and also crucially, we'll get 0:06:28.440 --> 0:06:31.320 more NFL games as part of this package. That's huge. 0:06:31.360 --> 0:06:33.520 It's going to help them in terms of growing their 0:06:33.560 --> 0:06:36.680 advertising business. And at the same time they announced the 0:06:36.680 --> 0:06:41.680 deal today with TKOSWWE, the Wrestling Network, they're going to 0:06:41.680 --> 0:06:45.960 get a bunch of big live events, including in WrestleMania. Again, 0:06:46.040 --> 0:06:49.279 that too is going to bolster this new ESPN product 0:06:49.640 --> 0:06:53.400 and get more people watching it at particular times, which 0:06:53.440 --> 0:06:54.760 will help them with advertisers. 0:06:55.240 --> 0:06:58.240 Is there going to be any regulatory concern around this 0:06:58.560 --> 0:07:00.520 about just the big getting to a bigger in the 0:07:00.520 --> 0:07:01.200 world of sports. 0:07:02.600 --> 0:07:04.160 I mean, yeah, I think that this is going to 0:07:04.240 --> 0:07:07.480 have to get regulatory approval. As we've seen with Paramount, 0:07:07.520 --> 0:07:09.760 that can cause a lot of problems in this current 0:07:09.840 --> 0:07:13.600 environment with the Trump administration, So that is a concern, 0:07:14.720 --> 0:07:16.720 But I think you know, what they're trying to do 0:07:16.840 --> 0:07:20.760 is again just build up. You know, they've been talking 0:07:20.760 --> 0:07:24.000 about this direct to consumer ESPN product for years now. 0:07:24.040 --> 0:07:26.080 This is a huge launch. It's been a long time 0:07:26.080 --> 0:07:28.320 in the making and to come out with news that 0:07:28.320 --> 0:07:31.680 you're going to have more NFL games, more WWE. I 0:07:31.680 --> 0:07:34.080 think that's what they're trying to drive the excitement around 0:07:34.120 --> 0:07:34.559 at the moment. 0:07:35.680 --> 0:07:38.560 Felix, you learn when you cover technology earnings in particular, 0:07:38.640 --> 0:07:42.160 sometimes it's what they don't say that drives stories. And 0:07:42.600 --> 0:07:45.440 I'm sorry to even ask this, but what's the latest 0:07:45.480 --> 0:07:46.200 on Bob Eiger? 0:07:46.480 --> 0:07:47.600 Like is he going to be there. 0:07:47.520 --> 0:07:50.600 Forever and ever infinity or do they have some plans 0:07:50.640 --> 0:07:52.000 in place for what happens next? 0:07:52.720 --> 0:07:55.960 Yeah, I mean, the succession issue with Disney never quite 0:07:56.040 --> 0:07:59.800 goes away. You know, it's been the focus of investors 0:08:00.080 --> 0:08:03.200 long time. They bodged it the last time Bob came back. 0:08:03.320 --> 0:08:06.160 They have to get it right this time. You know, 0:08:06.240 --> 0:08:08.920 there's been endless speculation about who that's going to be. 0:08:09.560 --> 0:08:12.520 Looks like the internal candidates are really getting narrowed down. 0:08:13.440 --> 0:08:17.760 But you know, again, TBD, that's all the next chapter 0:08:17.840 --> 0:08:19.760 of Disney and they have to really stick the landing 0:08:19.840 --> 0:08:20.240 this time. 0:08:27.880 --> 0:08:31.400 Welcome to our global audience across Bloomberg television and radio. 0:08:31.800 --> 0:08:35.520 We're joined by AMD CEO Lisa Sue. And it was 0:08:35.559 --> 0:08:38.240 such an interesting quarter to look back at Data Center 0:08:38.280 --> 0:08:43.120 in particular CPU strength, not just accelerators, strong AI outlook 0:08:43.160 --> 0:08:47.440 on accelerators, gaming PC, and then some concern about the 0:08:47.480 --> 0:08:50.240 future of the China business. But Caroline and I Lisa 0:08:50.280 --> 0:08:53.240 have talks for quite a while now about AMD as 0:08:53.280 --> 0:08:56.200 the best performing chip stock so far this year. I 0:08:56.240 --> 0:08:58.880 wondered if we start by just asking what in the 0:08:59.040 --> 0:09:02.600 quarter changed for a MD what the kind of biggest 0:09:02.880 --> 0:09:04.480 move forward was, do you think. 0:09:05.280 --> 0:09:08.000 Yeah, absolutely so. First of all, Ed and Caroline, great 0:09:08.040 --> 0:09:10.520 to be here with you. We always, you know, look 0:09:10.559 --> 0:09:13.560 at these things and say, when we have a business 0:09:13.559 --> 0:09:17.120 where all of our businesses are actually performing extremely well, 0:09:17.800 --> 0:09:19.400 it's a good it's a good place to be. 0:09:19.559 --> 0:09:20.480 So we had a very. 0:09:20.280 --> 0:09:22.800 Strong first half of the year, you know, second quarter 0:09:22.960 --> 0:09:23.840 up thirty two. 0:09:23.640 --> 0:09:24.800 Percent year over year. 0:09:24.920 --> 0:09:27.839 We're guiding to a third quarter you know, up twenty 0:09:27.880 --> 0:09:28.440 eight percent. 0:09:28.559 --> 0:09:30.520 And underneath that what you see is. 0:09:30.520 --> 0:09:33.040 You know, first of all, data center business is doing 0:09:33.320 --> 0:09:36.960 extremely well. Our server CPUs are continuing to gain share 0:09:37.320 --> 0:09:40.040 in cloud and in enterprise. One of the things that 0:09:40.080 --> 0:09:43.160 we're seeing with AI is the AI investments from the 0:09:43.240 --> 0:09:46.920 largest hyperscalers are actually pulling you know, both GPU and 0:09:47.040 --> 0:09:48.400 CPU revenue, you. 0:09:48.320 --> 0:09:50.000 Know, which is good for us overall. 0:09:50.040 --> 0:09:52.760 You know, augentic AI actually requires lots and lots of 0:09:52.760 --> 0:09:56.880 compute going forward. We're also seeing strength in you know, 0:09:56.960 --> 0:10:01.359 PCs as well as gaming. Our products are extremely well positioned, 0:10:01.679 --> 0:10:05.120 whether you're talking about you know, consumer or commercial. And 0:10:05.120 --> 0:10:08.160 then we're also seeing you know, some improvement in the 0:10:08.200 --> 0:10:10.600 embedded side of our business as you know, that is 0:10:10.640 --> 0:10:13.320 also you know, going to I would say, return to 0:10:13.360 --> 0:10:15.560 growth in the second half of the year. So we've 0:10:15.559 --> 0:10:18.280 seen a lot of positive signals over the last ninety 0:10:18.360 --> 0:10:21.200 days in terms of, you know, what the market needs 0:10:21.679 --> 0:10:24.600 from computing and sort of the investment and things. You know, 0:10:24.600 --> 0:10:27.360 there are some questions about China, of course, which you 0:10:27.360 --> 0:10:28.559 know we can certainly talk about. 0:10:29.600 --> 0:10:34.040 Well, let's talk first about the AI accelerator outlook, because 0:10:34.080 --> 0:10:37.320 actually from analysts to investors, to develop a community, when 0:10:37.320 --> 0:10:39.200 we say that you're coming on the show, we get 0:10:39.280 --> 0:10:42.319 questions from all quarters. You had said that the AI 0:10:42.360 --> 0:10:45.320 accelerator business will grow to the tens of billions, and 0:10:45.360 --> 0:10:47.680 what I'm kind of seeing is people just want granularity 0:10:47.679 --> 0:10:50.280 from Lysia a little bit like when does that happen 0:10:50.360 --> 0:10:52.920 and when does it happen? And you talked about the hyperscalers. 0:10:53.160 --> 0:10:56.120 But what's the growth pathway to tens of billions in 0:10:56.559 --> 0:10:57.840 accelerator revenue? 0:10:58.400 --> 0:11:01.000 Yeah, absolutely, ed, So let me give you a few 0:11:01.080 --> 0:11:04.400 important markers. So what we said is the second half 0:11:04.440 --> 0:11:07.600 of the year, our growth would be primarily driven in 0:11:07.640 --> 0:11:11.400 the data center by accelerators. We launched a new product 0:11:11.960 --> 0:11:16.720 just in June I three fifty five product. It's extremely competitive. 0:11:17.200 --> 0:11:19.440 We really like how we stack up in terms of 0:11:19.440 --> 0:11:23.440 total cost of ownership for inferencing and training workloads. Customers 0:11:23.480 --> 0:11:26.800 really like that product. That's driving some of our second 0:11:26.840 --> 0:11:29.679 half growth, and certainly when we talk about our sequential 0:11:29.679 --> 0:11:32.400 growth into Q three, that's being primarily driven by that 0:11:32.480 --> 0:11:33.839 accelerator capability. 0:11:34.200 --> 0:11:34.800 And now when you. 0:11:34.880 --> 0:11:38.240 Extend forward, you know I've said that the AI TAM 0:11:38.320 --> 0:11:41.959 for accelerators and data center will be over five hundred 0:11:42.000 --> 0:11:44.439 billion over the next couple of years. You know, we 0:11:44.520 --> 0:11:48.199 expect to get a large portion of that new accelerator 0:11:48.240 --> 0:11:50.280 TAM and that's how we get to tens. 0:11:50.040 --> 0:11:51.200 Of billions of dollars. 0:11:51.640 --> 0:11:54.880 Very key is also, you know, we've accelerated our roadmap 0:11:54.960 --> 0:11:57.760 and so we are on an annual cadence and next 0:11:57.880 --> 0:12:01.240 year we'll have yet a new capability with our four 0:12:01.320 --> 0:12:04.760 hundred series, which will bring full rack level solutions, which 0:12:04.760 --> 0:12:08.319 will be another giant step forward in terms of capability 0:12:08.920 --> 0:12:11.720 for you know, AI solutions. So I think that's the 0:12:11.800 --> 0:12:14.959 roadmap and path for the next couple of years. We're 0:12:15.559 --> 0:12:18.560 really excited about the traction. We're getting lots of customer 0:12:18.640 --> 0:12:22.080 validation saying hey, you're on absolutely the right path, and 0:12:22.440 --> 0:12:25.160 you know we're making strong progress towards those goals. 0:12:25.679 --> 0:12:29.360 Lisa, the granularity there was demanded time and time again 0:12:29.480 --> 0:12:32.680 on that earning score with analysts was around China though, 0:12:32.720 --> 0:12:34.640 and I know it's so hard to give because in 0:12:34.679 --> 0:12:37.040 many ways, as m I threeh eight, it's depending on 0:12:37.040 --> 0:12:38.520 the licenses from the US government. 0:12:38.960 --> 0:12:40.480 How are those discussions going with. 0:12:40.440 --> 0:12:42.240 The US government. How quickly do you think they can 0:12:42.280 --> 0:12:43.200 get through the backlog? 0:12:44.080 --> 0:12:45.400 Yeah, Caroline, definitely. 0:12:45.480 --> 0:12:48.160 Look, you know, I know people always want precision, and 0:12:48.200 --> 0:12:51.760 what I will give you is exactly how things are 0:12:51.800 --> 0:12:54.800 playing out from our standpoint. I think we've seen an 0:12:54.840 --> 0:12:57.439 improvement over the last ninety days. You know, ninety days ago, 0:12:58.120 --> 0:12:59.960 you know, we did not expect to believe to shift 0:13:00.520 --> 0:13:02.400 to be able to ship to China because of some 0:13:02.480 --> 0:13:07.800 of the regulations I think this administration, the Department of Commerce, 0:13:07.800 --> 0:13:11.240 the government has actually been very open to trying to 0:13:11.240 --> 0:13:14.800 find the right balance between national security and ensuring that 0:13:14.840 --> 0:13:20.360 we have AI USAI technologies proliferated across the world. So 0:13:20.400 --> 0:13:23.360 we think that's a great balance. We now know that 0:13:23.640 --> 0:13:25.960 we have a number of licenses that are under review. 0:13:26.400 --> 0:13:29.160 We've been given good indications that those are moving through 0:13:29.200 --> 0:13:33.439 the review process, and we will certainly inform everyone when 0:13:33.440 --> 0:13:35.960 the licenses are granted. But given that it's hard to 0:13:35.960 --> 0:13:38.880 predict exact timing, just given all of the things that 0:13:38.920 --> 0:13:40.840 are in front of the government at the moment, we 0:13:40.880 --> 0:13:43.360 thought the right thing to do right now is just say, hey, 0:13:44.120 --> 0:13:47.520 let's not include that in the third quarter revenue. But 0:13:47.679 --> 0:13:50.920 even with that, we're growing twenty eight percent year over year, 0:13:51.000 --> 0:13:53.800 which is fantastic growth rate. And if you asked me, 0:13:54.200 --> 0:13:56.280 you know what we've learned in the last ninety days, 0:13:56.320 --> 0:13:58.560 We've learned that the demand is even stronger in the 0:13:58.559 --> 0:14:01.200 second half of the year. And we necessarily, you know, 0:14:01.280 --> 0:14:02.880 thought maybe just a few months ago. 0:14:02.920 --> 0:14:06.120 And analysts really cooperated and thought it was right that 0:14:06.120 --> 0:14:08.720 we should see such caution perhaps and not show up 0:14:08.720 --> 0:14:11.640 in the numbers. But Lisa, I'm interested in the inventory 0:14:11.679 --> 0:14:13.720 that you had been very clear about the eight hundred 0:14:13.720 --> 0:14:16.400 million dollar knock on the fact that you couldn't access 0:14:16.480 --> 0:14:18.600 China for a while. I know that most of those 0:14:18.679 --> 0:14:21.480 manufacturing hadn't been complete, but do you think you can 0:14:21.600 --> 0:14:24.240 unwind that eight hundred million how much you think can 0:14:24.280 --> 0:14:25.600 you bring that back to bear? 0:14:26.760 --> 0:14:30.960 Well, we certainly expect that once licenses are approved, that 0:14:31.040 --> 0:14:35.520 we will restart our supply chain and get those in place. 0:14:36.120 --> 0:14:37.720 We do have, you know, a bit of time that 0:14:37.760 --> 0:14:39.760 it takes to complete those, but we would expect to 0:14:39.760 --> 0:14:42.360 be able, you know, to ship some of those products 0:14:42.400 --> 0:14:45.320 as licenses are approved. And you know, again the exact 0:14:45.320 --> 0:14:49.200 timing will depend on when licenses are approved. But I 0:14:49.240 --> 0:14:51.640 again would hope that we don't get caught up in 0:14:52.360 --> 0:14:56.000 something that I would say is moving actually in the 0:14:56.040 --> 0:14:59.240 right direction and really see like the overall business is 0:14:59.280 --> 0:15:02.280 doing extremely well. Right when I look at data center growth, 0:15:02.320 --> 0:15:04.800 when I look at client and gaming growth, and really 0:15:04.880 --> 0:15:06.840 the return to growth in the embedded those are the 0:15:06.920 --> 0:15:12.040 key aspects to really understand about where the business is today. 0:15:13.280 --> 0:15:13.560 Lisa. 0:15:13.880 --> 0:15:16.800 The final question that we have on China, if I may, 0:15:17.240 --> 0:15:19.960 is something that we've also discussed quite often with Video 0:15:20.000 --> 0:15:23.640 and Jensen. One which is the idea that in the 0:15:23.640 --> 0:15:28.040 interim period you just outlined, China's domestic chip makers have 0:15:28.160 --> 0:15:31.600 made some progress on their own accelerators. Does a m 0:15:31.680 --> 0:15:35.960 D make an assessment of that of how performance a 0:15:36.000 --> 0:15:40.320 comparable Huawei or other Chinese accelerator is relative to them? 0:15:40.400 --> 0:15:41.800 I three hundred family. 0:15:42.840 --> 0:15:45.400 And of course, I mean, look, it's a very competitive 0:15:45.440 --> 0:15:48.280 market out there. At the end of the day, everybody 0:15:48.360 --> 0:15:52.200 wants AI computing, Like AI computing is the foundation for 0:15:52.440 --> 0:15:54.800 you know, all the great things that we know that 0:15:54.840 --> 0:15:58.320 AI can add to, you know, businesses and you know, 0:15:58.360 --> 0:15:58.720 sort of. 0:15:58.640 --> 0:15:59.960 The overall capability. 0:16:00.240 --> 0:16:04.120 So yes, we're always looking at the competitive environment. That 0:16:04.240 --> 0:16:07.080 being the case, you know, I think we are well positioned. 0:16:07.400 --> 0:16:07.960 Overall. 0:16:08.160 --> 0:16:11.200 Our roadmap for the rest of the world is very strong, 0:16:11.480 --> 0:16:13.960 and we think is just getting stronger as we go forward, 0:16:14.160 --> 0:16:16.160 and as it relates to China, it's something that we 0:16:16.240 --> 0:16:18.480 have to work through with the administration, but as I said, 0:16:18.560 --> 0:16:22.600 we've had very close conversations and we're making good progress there. 0:16:22.640 --> 0:16:25.880 So from that standpoint, you know, I think the overall 0:16:25.920 --> 0:16:29.280 competitiveness of our AI roadmap has never been stronger. And 0:16:29.320 --> 0:16:32.520 we're excited about what we can deliver across you know, 0:16:32.560 --> 0:16:35.920 AI GPUs as well as you know, our our CPU 0:16:36.000 --> 0:16:39.160 franchise and all of the rest of our portfolio. 0:16:40.360 --> 0:16:43.880 This is Bloomberg Tech Live on Bloomberg Television and Bloomberg Radio, 0:16:43.920 --> 0:16:47.960 and we're speaking with AMD CEO Lisa Sue Strong in 0:16:48.080 --> 0:16:53.480 PC Strong in server particularly CPU. Is that an a 0:16:53.680 --> 0:16:57.000 m D capturing market share story or is that just 0:16:57.040 --> 0:16:59.280 a rebound in demand generally story? 0:16:59.360 --> 0:17:01.240 Lisa Well, I. 0:17:01.440 --> 0:17:02.160 Think it's both. 0:17:02.360 --> 0:17:02.480 Ed. 0:17:02.600 --> 0:17:06.320 I think the demand is is good. I think the 0:17:06.359 --> 0:17:10.840 demand patterns are better. But clearly we're very, you know, 0:17:11.000 --> 0:17:13.520 very competitive with our products. I think we have leadership 0:17:13.800 --> 0:17:15.680 CPUs in both. 0:17:15.440 --> 0:17:16.320 Server and client. 0:17:16.880 --> 0:17:20.880 We've shown significant traction in cloud as well as enterprise, 0:17:21.280 --> 0:17:23.240 and I think going forward you're going to see, you know, 0:17:23.440 --> 0:17:27.480 enterprise customers want the best solution out there, and that is. 0:17:27.400 --> 0:17:30.240 You know, a m D for computing and gaming. 0:17:30.600 --> 0:17:34.440 Nisa so Strong. I'm interested into the nuance of pull 0:17:34.520 --> 0:17:36.360 forward because you said on the call that you didn't 0:17:36.359 --> 0:17:38.960 see a whole lot of pull forward. Are people trying 0:17:38.960 --> 0:17:41.560 to get ahead of tarifs and price increases, but did 0:17:41.560 --> 0:17:42.360 you see any. 0:17:43.680 --> 0:17:45.400 You know, very little Caroline. 0:17:45.480 --> 0:17:48.879 I think what we look at mostly is not just 0:17:48.920 --> 0:17:53.280 what we're selling in to customers, but we actually look 0:17:53.320 --> 0:17:56.600 at what's being sold out at end customers, and what 0:17:56.640 --> 0:18:00.240 we're seeing being you know, really transferred to end customers 0:18:00.320 --> 0:18:04.320 is good demand. I mean, people are refreshing their data centers, 0:18:04.680 --> 0:18:06.760 which is very positive. Right We're in a place where 0:18:06.800 --> 0:18:10.760 computing is important, and so we're seeing strong refresh cycles 0:18:11.119 --> 0:18:14.040 on the data center side. We're seeing strong pull through 0:18:14.840 --> 0:18:19.760 of our of our solutions in the enterprise in PC, 0:18:20.560 --> 0:18:22.919 and then from a gaming standpoint, again, we have a 0:18:23.000 --> 0:18:26.240 very strong product cycle. So you know, there's it's always 0:18:26.240 --> 0:18:29.679 hard to tell exactly what the impact of the current 0:18:30.480 --> 0:18:32.800 tariffs are, but I would say that that's the smaller 0:18:32.840 --> 0:18:35.520 part of the impact on our business. The larger part 0:18:35.720 --> 0:18:41.120 is just strong products, you know, very good traction from customers. 0:18:40.840 --> 0:18:42.640 And looking at a stronger second half. 0:18:42.440 --> 0:18:44.680 Of the year, a stronger second half of the year 0:18:44.720 --> 0:18:48.120 where you take some market share from Nvidia, Lisa, how 0:18:48.119 --> 0:18:51.199 are you seeing that grow out and the ability to 0:18:51.240 --> 0:18:52.879 compete with the next ranger chips. 0:18:53.760 --> 0:18:57.800 Well, we are very bullish on our overall roadmap capability. 0:18:58.080 --> 0:19:00.639 I think the second half of the year as a 0:19:00.760 --> 0:19:04.879 number of customers. You're really you're broadly adopting AMD. 0:19:06.680 --> 0:19:09.520 Lisa, I have a question from our audience, if that's okay, 0:19:09.880 --> 0:19:11.960 a viewer of Bloomberg Tech and as you know, like 0:19:12.040 --> 0:19:15.480 loads of AMD employees, your peers, technology industry. 0:19:15.160 --> 0:19:16.680 People want to hear what you have say. I'm just 0:19:16.720 --> 0:19:17.840 going to read it to you. 0:19:17.840 --> 0:19:22.399 Can Lisa, please explain AMD's winning and gaming consoles. But 0:19:22.560 --> 0:19:25.560 AI is where the margins are. Now, what's the plan 0:19:25.640 --> 0:19:29.160 to make a MD indispensable to the next open AI 0:19:29.720 --> 0:19:33.440 and not just cost effective alternative? I think to invideor 0:19:33.520 --> 0:19:35.760 is what they're saying well ed? 0:19:36.240 --> 0:19:38.080 The best way to say that is for you know, 0:19:38.119 --> 0:19:40.240 those of you who know us as a company, you 0:19:40.280 --> 0:19:42.400 know we execute extremely well. 0:19:42.960 --> 0:19:44.680 You know, our roadmaps are strong. 0:19:45.000 --> 0:19:48.520