Advanced Micro Devices CEO Lisa Su addressed investor concerns over the company’s recent guidance, emphasizing that demand for advanced chips is accelerating rapidly. Speaking on CNBC’s “Squawk on the Street,” Su said that over the past two to three months, she has seen a significant uptick in demand, describing the pace of AI growth as “something I would not have imagined.” Despite posting fourth-quarter results that exceeded Wall Street expectations, AMD’s stock dropped 13% on Wednesday, weighed down by a first-quarter revenue forecast that some analysts viewed as underwhelming. The company projected $9.8 billion in revenue for the first quarter, plus or minus $300 million—above the $9.38 billion analysts had anticipated—but fell short of expectations for a more bullish outlook. Su attributed the cautious guidance to the high bar set by a series of major deals in the fourth quarter, including partnerships with OpenAI and Oracle. She noted that demand for AMD’s datacenter business has surged from the fourth to the first quarter, with enterprise clients rapidly expanding their computing capacity to support AI workloads. “Demand is going gangbusters,” she said, adding that the market’s need for compute power continues to outpace supply. She also highlighted an upcoming inflection point in the second half of the year, as AMD begins shipping its new integrated server-scale AI system, Helios. The company remains on track with the launch, and Su expressed confidence that Helios will play a key role in capturing growing demand for AI infrastructure. The broader trend of massive datacenter buildouts, driven by AI adoption across industries, continues to fuel investment in semiconductor capacity. Su’s comments underscore AMD’s confidence in its long-term trajectory, even as short-term guidance draws scrutiny.