Key Points
- AMD predicts the data center chip market will reach $1 trillion by 2030, driven by AI.
- The company forecasts 35% annual growth for its overall business and 60% for its data center business over the next 3-5 years.
- AMD is launching its next-gen MI400 AI chips in 2026 and making strategic acquisitions to boost its AI capabilities.
- A recent deal with OpenAI is expected to bring AMD over $100 billion in new revenue over the next 4 years.
Advanced Micro Devices (AMD) is setting its sights high, predicting that the market for its data center chips will grow to a staggering $1 trillion by 2030. CEO Lisa Su announced at the company’s analyst day on Tuesday, stating that artificial intelligence will be the main driver of this massive growth.
“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.”
AMD has been aggressively expanding its AI business to compete with rival Nvidia, which has been dominating the booming market for data center chips. While AMD has been very successful in the CPU business, gaining market share against Intel, it is now laser-focused on AI.
Looking ahead, AMD’s finance chief, Jean Hu, said the company expects 35% growth across its entire business over the next three to five years, with its data center business growing by an even more impressive 60%. The company also projects its earnings will rise to $20 a share in the same period. This optimistic forecast sent AMD’s shares up nearly 4% in extended trading.
To capture a bigger piece of the AI pie, AMD is set to launch its next-generation MI400 series of AI chips in 2026. The company is also making strategic acquisitions, including a server builder and several smaller software companies, to bolster its AI capabilities.
Last month, AMD announced a multi-year deal with ChatGPT creator OpenAI, expected to bring in over $100 billion in new revenue over four years. This deal was a major win for AMD, giving it a much-needed large customer in the AI space as it works to catch up to Nvidia.
