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Lisa Su, chair and chief government officer of Superior Micro Units Inc. (AMD), throughout a Bloomberg Tv interview in San Francisco, California, US, on Monday, Oct. 6, 2025.
David Paul Morris | Bloomberg | Getty Photographs
AMD CEO Lisa Su mentioned on Tuesday that the corporate’s general income progress would increase to about 35% per 12 months over the subsequent three to 5 years, pushed by “insatiable” demand for synthetic intelligence chips.
Su mentioned that a lot of that may be captured by the corporate’s AI knowledge heart enterprise, which it expects to develop at about 80% per 12 months over the identical time interval, on monitor to hit tens of billions of {dollars} of gross sales by 2027.
“That is what we see as our potential given the shopper traction, each with the introduced prospects, in addition to prospects which might be at present working very carefully with us,” Su informed analysts.
Finally, Su mentioned that AMD might have the ability to obtain “double-digit” share within the knowledge heart AI chip market over the subsequent three to 5 years.
AMD shares fell 3% in prolonged buying and selling. Shares rose in prolonged buying and selling when AMD mentioned its gross margins in coming years could be between a variety of 55% to 58%, higher than analysts had anticipated.
The AI chip market is at present dominated by Nvidia, which has over 90% of the market share, in response to some estimates, and which has given the corporate a market cap of over $4.6 trillion, versus AMD’s roughly $387 billion valuation.
AMD is holding its first monetary analyst day since 2022, as the corporate has discovered itself on the heart of a growth in knowledge heart spending for AI.
Whereas corporations are spending lots of of billions of {dollars} in complete on graphics processing unit (GPU) chips to construct and energy synthetic intelligence functions like OpenAI’s ChatGPT, they’re additionally searching for alternate options to extend capability and management prices. AMD is the one different main developer of GPUs other than Nvidia.
In October, AMD introduced a partnership with OpenAI by which it might promote the AI startup billions of {dollars} in its Intuition AI chips over a number of years, beginning with sufficient chips in 2026 to make use of 1 gigawatt of energy.
As a part of the deal, OpenAI might find yourself taking a ten% stake within the chipmaker. Su additionally highlighted long-term offers with Oracle and Meta on Tuesday.
AMD shares have almost doubled thus far in 2025.
OpenAI can also be serving to AMD arrange its next-generation methods based mostly round its Intuition MI400X AI chips, which ship subsequent 12 months.
AMD has mentioned that its chips will have the ability to be assembled right into a “rack-scale” system the place 72 of its chips work collectively as one, which is crucial for operating the most important AI fashions.
If AMD succeeds at its rack, it would meet up with Nvidia’s AI chips, which have been provided in rack-scale methods for 3 product generations.
Su mentioned that the corporate now sees the full marketplace for AI knowledge heart elements and methods hitting $1 trillion per 12 months in 2030, representing 40% annual progress per 12 months. AMD reported $5 billion in AI chip gross sales in its fiscal 2024.
That is up from the corporate’s earlier forecast of a $500 billion market in 2028 for AI chips. However the up to date AMD determine additionally contains central processors (CPU), an necessary type of chip that sits on the coronary heart of a pc, however is not a pure AI accelerator just like the GPUs made by Nvidia and AMD.
AMD’s Epyc CPUs are nonetheless the corporate’s most necessary product by gross sales. It primarily competes with Intel and a few smaller Arm-based processors within the CPU market. AMD additionally makes chips for sport consoles, networking elements, and different units.
On Tuesday, though AMD centered a lot of its concentrate on its rising AI enterprise, it informed shareholders that its older companies have been rising too.
“The opposite message that we need to go away you with at present is each different a part of our enterprise is firing on all cylinders, and that is truly a really good place to be,” Su mentioned.
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