CNBC’s Jim Cramer said Monday. advanced micro deviceThe impressive run under CEO Lisa Su is far from over, but the rise of agent AI is opening up significant new growth opportunities for the chipmaker.
“Lisa Su orchestrated one of the biggest, possibly greatest, turnarounds in AMD history, and it shows no signs of stopping anytime soon,” the “Mad Money” host said.
AMD rose nearly 13% last week and at one point had a market capitalization above $1 trillion, but fell below that milestone on Monday. The stock is up almost 30% in September alone, and the recent surge is due to: meta Launched Muse, a personal AI agent platform. Cramer said the increased adoption of AI agents should significantly increase demand for central processing units, and that AMD “remains the leader” in that market.
“Earlier this year, investor focus shifted from AI model training to inference and agents, and it became clear that CPU demand would explode as more CPUs are needed to run useful AI agents,” Cramer said.
AMD’s current position marks a stunning reversal from when Su took over as CEO in October 2014. At the time, the company was valued at just over $2.5 billion and was losing market share to rival chipmakers. intel. Time passed, and AMD’s stock price soared more than 18,000% as Su refocused the company and steadily gained CPU share.
While AMD is beefing up its CPUs, it’s also gaining a foothold in graphics processors used for AI workloads. Nvidia Kramer said the market is large enough to support multiple winners. AMD already has Meta and OpenAI.
“NVIDIA is still at the top of the AI chip market, but AMD is also making huge profits, and (Su’s) products are more competitive than people realize,” he said. “NVIDIA literally can’t make its own chips fast enough to meet demand. Of course there was room for AMD here.”
Cramer acknowledged that while AMD’s huge performance makes it vulnerable to backlash, AMD’s long-term opportunity remains intact. “What a great run,” he said. “Thanks to Lisa Su’s humble and tenacious leadership, she transformed a $2.5 billion company into a nearly $1 trillion enterprise.”
Cramer’s Charitable Trust, a portfolio managed by CNBC’s Investment Club, owns shares in INTC, META, and NVDA.
