00:00 Speaker A
Well, how well-positioned is Lisa Su’s company as new products are being developed?
00:04 Speaker B
I think it’s in a very good location. I think we’ll see the first real viable competition using Nvidia’s Blackwell platform later this year. Um, this isn’t far behind, uh, it’s still a generation behind Nvidia’s most advanced systems, but it’s a strong contender for the industry’s first rack system. And AMD’s products could test Nvidia’s market share with a more price-sensitive entry point.
00:39 Speaker A
Cody, what about other competition? As you know, AMD is thinking about its own customers. You think of the hyperscalers, the cloud giants, Microsoft, Amazon. What kind of competition could that create for AMD in the long term?
00:55 Speaker B
Yes, I think that’s true. Broadcom works with many hyperscalers and is a leader in the ASIC industry. Well, you’ll see that actually all hyperscalers invest in their own custom ASICs for some of their workloads. It’s more of a reasoning game for ASICs. Well, AMD and Nvidia will establish themselves in the industry with their high-performance GPUs.
1:24 Speaker B
I think there is room for both in a capacity-constrained data center environment. Um, but that’s an area that we’re looking at, like, um, ASIC. As you said, AMD customers are willing to use their own internal silicon.
1:44 Speaker A
Cody, um, you make a very good point, listen, expectations were high here. So before we get to this print, this stock has been a rocket ship, right? It’s up over 100% over the past 12 months. It’s truly a remarkable run.
2:00 Speaker A
I know you like the name, Cody. However, I think you may have some questions regarding the evaluation. You’re still arguing, listen, it’s fascinating at these levels.
2:10 Speaker B
Yes, that’s right. After 26 years, I think they’ve successfully launched the Helios platform and we’ll start to see real customer adoption. Oh, and remember they have Oracle and they have an open AI initiative. Um, they have customers who are, uh, very committed to using AMD for early generations of rack-scale systems. So, as the market starts to see the fruits and evidence of all the years of hard work that it’s put together to become a competitor to Nvidia, I think 2026 will start to unfold and the stock will respond well.
