Advanced Micro Devices, Inc. (AMD) Chairman and Chief Executive Officer Lisa Su speaks to Bloomberg TV on Monday, October 6, 2025, in San Francisco, California, United States.
David Paul Morris | Bloomberg | Getty Images
AMD Shares soared on Tuesday after CEO Lisa Su said the company’s overall revenue growth would expand to about 35% annually over the next three to five years due to “insatiable” demand for artificial intelligence chips.
Su said much of that will be earned by the company’s AI data center business, which has grown about 80% annually over the same period and expects sales to reach tens of billions of dollars by 2027.
“We think this is our potential given the customer traction, both announced customers as well as customers who are currently working very closely with us,” Hsu told analysts.
Ultimately, Su said AMD could achieve a “double-digit” share of the data center AI chip market in the next three to five years.
The AI chip market is currently Nvidiaaccording to some estimates, accounts for more than 90% of the market share, and the company’s market capitalization is over $4.6 trillion, compared to AMD’s valuation of about $387 billion.
AMD is holding its first Financial Analyst Day since 2022 as it finds itself at the center of a data center spending boom for AI.
Enterprises are collectively spending hundreds of billions of dollars on graphics processing unit (GPU) chips to build and power artificial intelligence applications like OpenAI’s ChatGPT, while also exploring alternatives to increase capacity and control costs. Aside from Nvidia, the only other major developer of GPUs is AMD.
In October, AMD announced a partnership with OpenAI to sell its Instinct AI chips to AI startups for billions of dollars over multiple years, starting with enough chips to use 1 gigawatt of power in 2026.
As part of the deal, OpenAI could end up taking a 10% stake in the chipmaker. Mr. Su also emphasized the long-term contract with. oracle and meta on tuesday.
AMD’s stock price has almost doubled by 2025.
OpenAI is also helping AMD set up next-generation systems based on the Instinct MI400X AI chip, which ships next year.
AMD said its chips can be assembled into “rack-scale” systems with 72 chips working together as one, which is essential for running the largest AI models.
If AMD succeeds at the rack, it will overtake Nvidia’s AI chips, which have been offered in rack-scale systems for three generations.
Su said the company currently expects the total market for AI data center parts and systems to reach $1 trillion annually in 2030, which corresponds to 40% annual growth. AMD reported fiscal year 2024 AI chip sales of $5 billion.
This is an increase from the company’s previous prediction that the market for AI chips would reach $500 billion in 2028. But AMD’s latest numbers also include central processors (CPUs), an important type of chip at the heart of computers, but not pure AI accelerators like GPUs made by Nvidia and AMD.
AMD’s Epyc CPUs remain the company’s most important product in terms of sales. The main competitors are intel And there are even smaller ones armCPU-based processors in the market. AMD also makes chips for game consoles, networking components, and other devices.
AMD on Tuesday focused on its growing AI business, but also told shareholders that its older businesses are also growing.
“The other message we want to get across to you today is that every other part of our business is firing on all cylinders, and it’s actually a pretty great place to be,” Sue said.
