AMD benefits from being a key second source for AI factory systems and gaining CPU pricing power amid high demand.

Well, Nvidia, of course. Ah, the rise of AMD is really driven by two dimensions. The first is central processing units (CPUs). We can talk about that in detail. But I think the other is seeing AMD as a true second source for AI factories .

It's much bigger than just chips. It is a complete system that companies like HPE and Lenovo are currently building. It will be released to customers at the end of this year, or the beginning of next year.

So, I think what you're seeing is this recognition that AMD really is that second source for leading AI companies and firms that are building those AI factories.

Look at AMD; a large part of what they announced during the evaluations of the past few weeks is that they are using a type of computer-to-computer communication that is heavily reliant on Broadcom.

Yes, of course. This report, I don't know if AMD has confirmed its need to raise its prices. I mean, what does that tell you about its current pricing and demand power, and also about chip price inflation ?

Therefore , it is natural that with the voracious demand for CPUs, the supply is not sufficient to meet this demand. This gives companies like AMD, Intel, and others pricing power they didn't have on CPUs two years ago.

I think when you look at a company like AMD, the data center is really the customer, because those giant systems don't necessarily go to enterprise customers initially. For example, when AMD releases its Helios operating system, one of its first customers will likely be Oracle, which is essentially a huge cloud computing provider .