A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023.
The Santa Clara, California-based chip designer has seen its stock climb 16% since October 6, when it signed a multiyear deal with OpenAI estimated to bring in tens of billions of dollars in annual revenue. While the agreement is not expected to challenge Nvidia’s dominant position in AI chipmaking, analysts view it as a strong endorsement of AMD’s technology and long-term competitiveness.
At the company’s analyst day event in New York — its first in three years — Chief Executive Officer Lisa Su said AMD expects the total market for its data center chips to expand to $1 trillion by 2030, with artificial intelligence driving much of the growth. The market projection includes AMD’s general-purpose processors, networking chips, and specialized AI accelerators. “It’s an exciting market,” Su said. “There’s no question, data center is the largest growth opportunity out there, and one that AMD is very, very well positioned for.”
Chief Financial Officer Jean Hu added that AMD expects 35% annual growth across its overall business and 60% annual growth in its data center segment over the next three to five years. The company anticipates earnings to rise to $20 per share in that period, compared with analysts’ 2025 profit estimate of $2.68 per share, according to LSEG data.
Nvidia’s CEO Jensen Huang has forecast that the global AI infrastructure market could reach $3 trillion to $4 trillion by 2030, reflecting industry-wide optimism for rapid expansion in computing demand.
AMD’s upcoming MI400 series of AI chips, scheduled for release in 2026, will include variants designed for scientific research and generative AI applications. Alongside the MI400, AMD plans to introduce a full server rack system, similar to Nvidia’s GB200 NVL72, aimed at supporting large-scale AI workloads.
Su highlighted AMD’s recent acquisitions in AI-related areas, including the purchase of server manufacturer ZT Systems and several smaller software firms. “AMD has built an M&A machine,” Su said. Chief Strategy Officer Mat Hein told Reuters that the company’s latest acquisition, MK1, is part of a broader plan to strengthen AMD’s software capabilities and attract top engineering talent. “We’ll continue to do AI software tuck-ins,” Hein said.
AMD also forecast fourth-quarter revenue above market expectations, supported by growing demand for AI chips. The company’s data center CPU business has seen notable benefits from increased investment in AI infrastructure, reinforcing AMD’s confidence in its growth outlook for the coming years.
