Club holding Advanced Micro Devices (AMD) is making another acquisition, just weeks after closing its blockbuster purchase of Xilinx. The latest deal, announced Monday, is an agreement to buy Pensando, valuing the cloud startup around $1.9 billion. That's much smaller than the estimated $50 billion price tag Xilinx carried . However, the two M & A moves share a common purpose — boosting AMD's presence in the lucrative data center chip market. AMD CEO Lisa Su joined CNBC's "Squawk on the Street" on Monday morning to talk about the company's planned purchase of Pensando and more. Here's what she had to say: 'Doubling down' on data center AMD's largest revenue segment remains computing and graphics. But the chip designer is also seeing significant growth in the data center processor market. Revenue in that category doubled in 2021 from the prior year. Acquiring privately held Pensando is all about "doubling down on the data center," Su told Jim Cramer. Combined with AMD's other offerings, Su added that this is a "fantastic portfolio for the most important customers and the most important workloads in the world." Founded in 2017 by a team of former executives from Cisco Systems (CSCO), also a Club name, Pensando makes a processor chip and related software that allows customers to operate their servers more efficiently and better tailored to their specific data needs. Roughly two years later, Pensando brought its product to market. Pensando's products are already being used by blue-chip companies such as Goldman Sachs (GS), Microsoft 's (MSFT) cloud division Azure and Oracle Cloud. Microsoft is also a Club holding. Hewlett Packard Enterprise (HPE) was an early investor and customer. The venture arm of Club holding Qualcomm (QCOM) strategically invested in Pensando in 2020, focusing on expanding around 5G. "What we see is there's a continuing need for more compute," Su told CNBC. "High-performance compute is the fastest growing, the most exciting part of the industry, and we have all the components for it. Of course, we love our traditional PC and gaming markets, but the data center is the most strategic area." Remember: Data center is a highly competitive area right now for semiconductor firms, but some on Wall Street see AMD taking market share there at the expense of Intel . It's one reason why widely respected chip analyst Stacy Rasgon in February upgraded AMD to a buy for the first time in a decade. Rasgon told CNBC on Monday afternoon he's a fan of AMD buying Pensando. "I think it makes a lot of sense. It bolsters their ability to offer data center solutions, especially in the enterprise," the Bernstein analyst said on "Closing Bell." Update on PC and gaming PC and gaming is still an important part of AMD's business even if other segments — such as data center — are growing faster. However, there's been some questions about what demand for PC and gaming chips will look like this year and beyond after the Covid pandemic caused a sizable uptick. How durable will that be? For PCs, in particular, Su said it's all about where you look. "There are hundreds of millions of PCs being sold. What you're really seeing is it depends on which segment you're in. There are some areas where you see softness. For example, education and consumer because you're coming off just record highs in 2021," she said. By contrast, Su said consumers continue to invest in higher-performing computers, like those used for enterprise and gaming, and premium offerings. "In premium, we've gained revenue share for the last eight quarters and in this market environment, I believe we're going to continue to gain revenue share," Su said, meaning that even if the overall category stays relatively flat in sales, AMD expects to receive a bigger piece of that pie. AMD's graphic chips are used in Microsoft's Xbox consoles, as well as Sony's PlayStations. Su painted a favorable picture of that category, noting AMD and its partners are working to ramp up supply to meet strong demand. "From everything we see, it's a very strong gaming cycle here this year and into '23 and beyond, and the key is, there's just more gamers out there," she said. Club's take During Monday's "Morning Meeting" for the Club, Cramer spoke favorably about AMD's acquisition of Pensando. Along with Xilinx, he said it further solidifies the chip designer's identity as a major data center player. "Old AMD is a little hostage to the PC, with some gaming," Cramer said. New AMD, by contrast, is "all high-end computing, high-performance computing, and that's exactly what [Su] needs," he added. We think AMD is a buy here, evidenced by our 1 rating on the stock. Shares have dropped 24% year to date, underperforming the VanEck Semiconductor ETF (SMH). Among the potential reasons: Investor worry about a PC slowdown, profit-taking since the stock has been a big winner since 2020, and because the Xlinix deal had a stock component. Regardless, we're believers in Su and AMD's transformation over the long-term. Monday's announcement to acquire Pensando bolsters that view and makes this pullback to start the year a buying opportunity. (Jim Cramer's Charitable Trust is long AMD, CSCO, MSFT and QCOM). See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . 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