Source: Semiconductor Industry Watch. At yesterday's Conputex conference, Dr. Lisa Su released the latest roadmap. Afterwards, foreign media morethanmoore released the content of Lisa Su's post-conference interview, which we have translated and summarized as follows: Q: How does AI help you personally in your work? A: AI affects everyone's life. Personally, I am a loyal user of GPT and Co-Pilot. I am very interested in the AI used internally by AMD. We often talk about customer AI, but we also prioritize AI because it can make our company better. For example, making better and faster chips, we hope to integrate AI into the development process, as well as marketing, sales, human resources and all other fields. AI will be ubiquitous. Q: NVIDIA has explicitly stated to investors that it plans to shorten the development cycle to once a year, and now AMD also plans to do so. How and why do you do this? A: This is what we see in the market. AI is our company's top priority. We fully utilize the development capabilities of the entire company and increase investment. There are new changes every year, as the market needs updated products and more features. The product portfolio can solve various workloads. Not all customers will use all products, but there will be a new trend every year, and it will be the most competitive. This involves investment, ensuring that hardware/software systems are part of it, and we are committed to making it (AI) our biggest strategic opportunity. Q: The number of TOPs in PC World - Strix Point (Ryzen AI 300) has increased significantly. TOPs cost money. How do you compare TOPs to CPU/GPU? A: Nothing is free! Especially in designs where power and cost are limited. What we see is that AI will be ubiquitous. Currently, CoPilot+ PC and Strix have more than 50 TOPs and will start at the top of the stack. But it (AI) will run through our entire product stack. At the high-end, we will expand TOPs because we believe that the more local TOPs, the stronger the AIPC function, and putting it on the chip will increase its value and help unload part of the computing from the cloud. Q: Last week, you said that AMD will produce 3nm chips using GAA. Samsung foundry is the only one that produces 3nm GAA. Will AMD choose Samsung foundry for this? A: Refer to last week's keynote address at imec. What we talked about is that AMD will always use the most advanced technology. We will use 3nm. We will use 2nm. We did not mention the supplier of 3nm or GAA. Our cooperation with TSMC is currently very strong-we talked about the 3nm products we are currently developing. Q: Regarding sustainability issues. AI means more power consumption. As a chip supplier, is it possible to optimize the power consumption of devices that use AI? A: For everything we do, especially for AI, energy efficiency is as important as performance. We are studying how to improve energy efficiency in every generation of products in the future-we have said that we will improve energy efficiency by 30 times between 2020 and 2025, and we are expected to exceed this goal. Our current goal is to increase energy efficiency by 100 times in the next 4-5 years. So yes, we can focus on energy efficiency, and we must focus on energy efficiency because it will become a limiting factor for future computing. Q: We had CPUs before, then GPUs, now we have NPUs. First, how do you see the scalability of NPUs? Second, what is the next big chip? Neuromorphic chip? A: You need the right engine for each workload. CPUs are very suitable for traditional workloads. GPUs are very suitable for gaming and graphics tasks. NPUs help achieve AI-specific acceleration. As we move forward and research specific new acceleration technologies, we will see some of these technologies evolve-but ultimately it is driven by applications. Q: You initially broke Intel's status quo by increasing the number of cores. But the number of cores of your generations of products (in the consumer aspect) has reached its peak. Is this enough for consumers and the gaming market? Or should we expect an increase in the number of cores in the future? A: I think our strategy is to continuously improve performance. Especially for games, game software developers do not always use all cores. We have no reason not to adopt more than 16 cores. The key is that our development speed allows software developers to and can actually utilize these cores. Q: Regarding desktops, do you think more efficient NPU accelerators are needed? A: We see that NPUs have an impact on desktops. We have been evaluating product segments that can use this function. You will see desktop products with NPUs in the future to expand our product portfolio.

According to Reuters, $Intel (INTC.US)$ It is expected to report its largest quarterly revenue decline in five quarters on Thursday, which may indicate further erosion of market share in data centers and personal computer markets by this once iconic American chip maker.

With the increasing losses in contract manufacturing business, shareholders are turning their attention to CEO Pat Gelsinger's efforts to save the company's lost market leadership. Intel has failed to capitalize on the generative AI-driven chip boom, following a series of missteps including giving up investments in OpenAI.

According to data compiled by the London Stock Exchange on October 26, Wall Street expects Intel's second-quarter revenue to decline by 8% to $13.02 billion, as investors hope Gelsinger can clearly outline his plan for putting the company's latest manufacturing technology into operation.

A disastrous quarterly report in August has raised doubts about Gelsinger's strategy to revive this troubled chip maker.

Rosenblatt Securities analyst Hans Mosesman said Intel investors have two big questions: "Can this issue be resolved?" and "Who will solve this issue?"

Henry Kissinger took office as CEO in 2021, where he has already cut jobs, suspended dividends, and has even reached out to existing clients.$Amazon (AMZN.US)$They have reached a new chip manufacturing agreement - one of the first major production deals for the company's latest 18A technology.

However, this has not reassured investors as the company's stock price has fallen over 50% since the beginning of this year, with the market cap dropping below $100 billion.

While some investors are seeking progress from Intel in establishing advanced 18A manufacturing technology, set to launch in 2025, others hope that the company will divest its manufacturing business, leaving only the chip design business.

Synovus Trust portfolio manager Daniel Morgan said: 'If Intel sells its foundry business, many will appreciate it.' The institution holds Intel and $Advanced Micro Devices (AMD.US)$ During the reporting period, Scion increased its holdings in biotechnology company BioAtla.

According to Visible ALPHA, due to the capital-intensive process of operating and expanding wafer fabs, its foundry is expected to incur a $2.55 billion operating loss this quarter.

Gabelli Funds, a shareholder of Intel, research analyst Ryuta Makino stated: "Foundry services are the main reason for Intel's weak gross margin."

According to the London Stock Exchange, the chip manufacturer's adjusted gross margin is expected to decline by more than 7 percentage points to 37.9%.

$Intel (INTC.US)$ The increasing production of AI personal computer chips may also put pressure on profit margins - the company has been betting on AI personal computer chips to drive demand recovery in the field.

However, this recovery has not materialized, and sales in Intel's personal computer division may decline by more than 6% in the third quarter.

The winner may be $Advanced Micro Devices (AMD.US)$ According to the estimation of the London Stock Exchange, AMD's PC chip revenue is expected to increase by more than 18% in the third quarter.

AMD is also eroding market share from Intel in the server industry. This company led by Su Zifeng is expected to achieve more than double the growth in datacenter revenue with its AI chips, while Intel's datacenter revenue is expected to decrease by about 17% for the 10th consecutive quarter.

Although Intel still holds a significant share in the server CPU market, the demand has shifted towards artificial intelligence graphics processors, where Intel has a small share.

Since September, about half of the 31 analysts have lowered their revenue expectations for Intel, so some investors believe that Intel's performance will not disappoint.

Makino from Gabelli Funds stated, "I would be very surprised if there were any more negative surprises, because expectations have been completely reset."

But in fact, AMD has also given out unfavorable expectations.

AMD's stock price is falling, is AI peaking?

According to Reuters, the chip manufacturer $Advanced Micro Devices (AMD.US)$ )'s revenue forecast is lower than analysts' expectations, leading to a post-market trading drop in the company's stock, indicating that the growth rate of its artificial intelligence sales is lower than some people's expectations.

The company announced on Tuesday that fourth-quarter revenue is approximately $7.5 billion.

Analysts' average estimate is $7.55 billion. Although the company currently expects sales of the so-called artificial intelligence accelerators to exceed $5 billion this year - higher than the previous forecast of $4.5 billion - some analysts and investors have been anticipating greater growth.

In the lucrative market of artificial intelligence computing chips, $Advanced Micro Devices (AMD.US)$ Currently catching up$NVIDIA (NVDA.US)$The company. The company is currently earning billions of dollars in revenue from these types of products — growing rapidly compared to a year ago — but still far below its competitors' revenue in the hundreds of billions of dollars.

In Tuesday's after-hours trading, AMD's stock price fell by about 7%. The company's stock price has risen by 13% so far this year, closing at $166.25 in New York.

AMD's third-quarter revenue increased by 18% to $6.82 billion, exceeding the average expected $6.71 billion. Profit per share rose to 92 cents excluding certain items, in line with expectations.

AMD's new MI300 accelerator product competes with Nvidia chips and has become one of its largest sales engines. However, growth is hindered by supply constraints. Like most companies in the industry, AMD no longer owns its own factories, choosing instead to outsource production to **** semiconductor manufacturers.

Investors track AMD's performance as an indicator of overall demand for AI-related hardware. Amazon's AWS and$Microsoft (MSFT.US)$Companies and other companies are investing heavily in this still new type of computing infrastructure, disrupting the entire industry. Investors are concerned that AI services have not yet become highly profitable products, which may make it more difficult for companies to continue to prove that the cost of purchasing chips is reasonable.

In addition to being Nvidia's biggest competitor in AI accelerators, AMD also competes with Nvidia in graphics chips used by PC gamers. Furthermore, it engages in intense competition with Intel in personal computer and server processors.

AMD's datacenter division generated sales of 3.5 billion USD last quarter, more than double the same period last year, slightly higher than expected. Personal computer chips brought in 1.88 billion USD in revenue, a 29% increase.

AMD also provides custom processors for Microsoft and $Sony Group (6758.JP)$Group's game consoles. Sales in this segment weakened due to the current generation of game consoles reaching the end of their lifecycle. Revenue decreased by 69% to 0.462 billion USD, below expectations.

AMD also predicts that the adjusted gross margin (the remaining sales percentage after deducting production costs) for the fourth quarter will be slightly lower than expected.

Editor/Rocky