Key Takeaways
- AMD CEO Lisa Su identifies "Physical AI" and robotics as the primary drivers for the next growth cycle, while predicting a 1:1 CPU-to-GPU ratio in data centers by the end of 2026.
- Lenovo (LNVGY) warns of a severe memory component shortage that is doubling costs, even as its NVIDIA (NVDA) partnership secures critical GPU supply.
- The Philippines’ central bank (BSP) warns it may be "falling behind the curve" as persistent supply shocks in rice and fertilizer drive inflation to an over three-year high of 7.2%.
- Hong Kong’s semiconductor index surged 2.5% at the open, led by gains in SMIC (SMICY) and Huahong Semiconductor (HHVFF) following positive AI outlooks.
AMD Pivots to Physical AI and Global Ecosystem
AMD (AMD) Chair and CEO Lisa Su declared that the next major phase of artificial intelligence will be defined by "Physical AI," including humanoid robotics and industrial automation. Speaking at an industry event in Shanghai, Su noted that AI is moving rapidly beyond simple inference to perform advanced, intelligent tasks across a globally diverse ecosystem.
To meet this shift, AMD is aggressively ramping up CPU production, noting that the traditional data center balance is shifting toward a more equal distribution of processing power. Su emphasized that the U.S. cannot manufacture everything on its own, underscoring the necessity of continued investment in Taiwan and the ongoing progress at TSMC (TSM) Arizona to build capacity for the next three years.
Lenovo Grapples with Memory Crunch Despite NVIDIA Ties
Lenovo (LNVGY) CEO Yang Yuanqing reported that while the company's strategic partnership with NVIDIA (NVDA) has stabilized its supply of high-end AI chips, the broader hardware industry is facing a "potentially permanent" memory chip shortage. This crunch, driven by the reallocation of silicon wafers to high-bandwidth memory (HBM), has led to rising costs and immediate price hikes for enterprise servers and PCs.
Company executives advised partners to secure orders quickly, as quoted prices for certain server products are currently expiring in as little as 12 hours. Despite these headwinds, Lenovo’s digital infrastructure group has seen high double-digit growth, supported by the rollout of new rack-scale solutions based on NVIDIA’s latest architectures.
Philippines Faces Inflationary "Supply Shocks"
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. expressed growing concern that the central bank’s early interest rate tightening may not have been aggressive enough to curb 7.2% inflation. Remolona noted that policymakers have been taken by surprise by the persistence of supply shocks affecting fertilizer and rice prices, which have been exacerbated by current account deficits.
The Philippine peso remains under pressure, recently hitting historic lows near P61.75 against the dollar, though the central bank chief noted that a weaker currency provides a marginal benefit to struggling exporters. The BSP is now considering off-cycle rate hikes to stay ahead of the curve as fiscal conditions remain tight.
Asian Markets and Geopolitical Movements
Technology shares in Greater China saw a significant boost on Friday, with Hong Kong’s technology index opening up 1.6% and the Hang Seng Semiconductors Industry Index climbing 2.5%. The rally was supported by strong performances from memory-related stocks like Montage Technology and GigaDevice, which rose between 4% and 5% in early trade.
On the diplomatic front, China’s top lawmaker Zhao Leji is scheduled to conduct official visits to Kazakhstan and Russia from May 25 to 30. The visit is expected to focus on parliamentary cooperation and strengthening the Belt and Road initiative amid shifting regional trade dynamics.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.