Advanced Micro Devices Inc (NASDAQ:AMD) on Monday announced that it entered into a definitive agreement to acquire cloud technology company Pensando for approximately $1.9 billion.
"Pensando is really one of those foremost pioneers in this whole data center area," AMD Chair and CEO Lisa Su said Monday on CNBC's "Squawk On The Street."
What To Know: The acquisition is representative of AMD's move to double down on data center, she said.
Pensando has spent time thinking about how data center services will be used in the future and has already built a hardware and software distributed services platform, Su added.
"We are definitely focused on growth," she said. "And what we see is there is a continuing need for more compute."
High performance computing is the fastest growing part of the industry and AMD has put components in place via acquisitions to capitalize on the growth, Su said.
"Strategically, I think you are going to see a lot more from us in the data center and really the embedded markets," she said.
See Also: Rosenblatt Analyst Explains How AMD Stock Weakness Is Buying Opportunity
Su told CNBC that AMD has gained market share measured by revenue over the last eight quarters and she expects to continue to take share over the coming quarters.
"This has been sort of a strategic journey that we're on," she said. "It's really about transitioning our portfolio from one that was much more consumer centric to one that's much more balanced in the high performance compute and adaptive compute space and together with Xilinx and Pensando and the AMD organic portfolio, I think we have the best portfolio in the industry."
AMD Price Action: AMD has traded between $72.50 and $164.45 over a 52-week period.
The stock was up 1.3% at $109.60 midday Monday, according to data from Benzinga Pro.
Photo: courtesy of AMD.
