"Only uses Nvidia chips," Musk's remark met with calm response from AMD CEO

"Only uses Nvidia chips," Musk's remark met with calm response from AMD CEO

Elon Musk, CEO of SpaceX, announced that he would only use Nvidia chips for building AI infrastructure, causing a sharp drop in the stock price of Nvidia's competitor, AMD. However, AMD CEO Lisa Su responded calmly.

Appearing on CNBC's 'Squawk on the Street' on the 5th (local time), CEO Lisa Su said, "SpaceX is a very important technology company," and expressed pride that AMD has collaborated with SpaceX in various fields.

She emphasized that AMD trades with many technology companies in various markets, including the space sector.

Earlier, at SpaceX's earnings conference call on the 4th, Musk said, "Going forward, we have decided to build an exclusive relationship based on Nvidia," adding, "because we believe the Vera Rubin architecture is the best architecture."

Musk also added, "We value our close cooperation and partnership with Nvidia very highly," and "I understand that we will receive a significantly large portion of Nvidia's graphics processing unit (GPU) volume next year."

This statement differs from his previous announcements that he planned to use both Nvidia and AMD chips.

Following Musk's remarks, Nvidia's stock price rose 3.4% on the 5th, while AMD's stock price fell 7%.

In an interview with CNBC, CEO Su said, "At this time, we have much stronger customer visibility," and "Customers want much more computing power from us."

She added, "Our customers are giving AMD many more planning opportunities regarding server supply," and "As a result, we are investing across the entire supply chain and working with customers to invest in the entire ecosystem, including backend processes, to meet customer demand."

AMD also announced its second-quarter earnings on the 4th.

AMD's second-quarter revenue was $11.5 billion, a 50% increase year-over-year. This exceeded the consensus (average market forecast) of $11.3 billion, which CNBC evaluated as demonstrating AMD's key position in the AI chip market.

In particular, data center sector revenue, including sales of server CPUs and GPUs, recorded $6.7 billion, a 107% increase year-over-year, driving growth.

Data center revenue is expected to grow by 80% year-over-year in the second half of this year and by more than 70% in 2027.