AMD Chair and CEO Lisa Su said during Tuesday's earnings conference that the emergence of DeepSeek is a good thing.

The earnings results showed that in the fourth quarter of 2024, which ended in December 2024, AMD's revenue reached $7.658 billion, an increase of 24% year-over-year, above the market's expectation of $7.53 billion, while its net income was $482 million, a decrease of 28% year-over-year.

Notably, AMD's data center revenue grew 69% year-over-year to $3.86 billion in the quarter, but was lower than analysts' estimates of $4.09 billion, indicating that it failed to close the gap with Nvidia in the area of artificial intelligence computing power.

However, the earnings results caused investors to worry that AMD's entry into the AI computing power field is losing momentum, and the shares fell more than 8% in pre-market trading.

Su emphasized at the earnings conference that there have been some new breakthroughs in the AI field recently, such as the development of a large model DeepSeek-R1 by Chinese company DeepSeek and the announcement of the establishment of a $500 billion "Stargate" project in the U.S., which are exactly the kind of advances that AMD would like to see.

"All of these initiatives require massive amounts of new compute and create unprecedented growth opportunities for AMD across our businesses," she noted.

Regarding DeepSeek's high-performance, large models trained at lower cost, Su was optimistic, "Relative to DeepSeek, we think that innovation on the models and the algorithms is good for AI adoption."

"The fact that there are new ways to bring about training and inference capabilities with less infrastructure is actually good, because it allows us to continue to deploy AI compute in the broader application space and [with] more adoption," she further stated.