00:00 Speaker A
I know that a lot of our audience is interested in finding a way to hide out in some of the big tech names, and we just had a chance for our executive editor, Brian Sozzi, to speak with Lisa Su, the CEO over at AMD about the future of AI. Here’s what she had to say.
00:14 Lisa Su
There is no question we are in the very early innings of AI. Now, you know, put some of the noise aside. So I am a big believer in this is the very, very early part of AI. Uh, the need for compute continues to be immense. Uh, we see that throughout all of our customers globally, and we’re going to continue to invest strongly in this area because I think this is the single most important technology. I like to say it’s the single most important technology of the last 50 years.
00:54 Speaker A
Do you agree with that from an investment thesis perspective that long-term AI is the transformative technology to invest in?
01:01 Speaker B
So we get asked about thematic investments all the time. People want long-term investments, and the problem is there’s a mismatch between what investors will tolerate in the short term in terms of market volatility and what they want to achieve in the long term in terms of the returns. Absolutely, uh, AI is going to be transform has been transformative, uh, potential for productivity breakthroughs, um, handling, you know, potentially lower labor force participation, older workforce, and, you know, having to find other ways to kind of make up for that, uh, that problem that we’re going to have in the next 10 or 20 years is going to be transformative. A lot of these stocks, I think when push comes to shove, when they when we even when we do get a genuine slowdown, will do better because they have a secular kind of earnings story kind of powering their their their their company’s bottom line for revenues, their outlook for long term. But in the near term, if they’re perceived as sort of, this is something that’s done well lately. It’s been a high momentum trade. Anything that you know, once when this hits the wall, anything that’s kind of high momentum is is going to be suffering, whether it’s a consumer stock, whether it’s a bank, whether it’s an AI related trade. So in the near term, this could be dicey, long term, we’re big believers, yes.