Lisa Su, seat and main enforcement serviceman of Advanced Micro Devices Inc. (AMD), during a Bloomberg Television interrogation successful San Francisco, California, US, connected Monday, Oct. 6, 2025.
David Paul Morris | Bloomberg | Getty Images
AMD shares swung connected Tuesday aft CEO Lisa Su said the company's wide gross maturation would grow to astir 35% per twelvemonth implicit the adjacent 3 to 5 years, driven by "insatiable" request for artificial intelligence chips.
Su said that overmuch of that would beryllium captured by the company's AI information halfway business, which it expects to turn astatine astir 80% per twelvemonth implicit the aforesaid clip period, connected way to deed tens of billions of dollars of income by 2027.
"This is what we spot arsenic our imaginable fixed the lawsuit traction, some with the announced customers, arsenic good arsenic customers that are presently moving precise intimately with us," Su told analysts.
Ultimately, Su said that AMD could beryllium capable to execute "double-digit" stock successful the information halfway AI chip marketplace implicit the adjacent 3 to 5 years.
The AI spot marketplace is presently dominated by Nvidia, which has implicit 90% of the marketplace share, according to immoderate estimates, and which has fixed the institution a marketplace headdress of implicit $4.6 trillion, versus AMD's astir $387 cardinal valuation.
AMD is holding its archetypal fiscal expert time since 2022, arsenic the institution has recovered itself astatine the halfway of a roar successful information halfway spending for AI.
While companies are spending hundreds of billions of dollars successful full connected graphics processing portion (GPU) chips to physique and powerfulness artificial quality applications similar OpenAI's ChatGPT, they are besides looking for alternatives to summation capableness and power costs. AMD is the lone different large developer of GPUs speech from Nvidia.
In October, AMD announced a concern with OpenAI successful which it would merchantability the AI startup billions of dollars successful its Instinct AI chips implicit aggregate years, starting with capable chips successful 2026 to usage 1 gigawatt of power.
As portion of the deal, OpenAI could extremity up taking a 10% involvement successful the chipmaker. Su besides highlighted semipermanent deals with Oracle and Meta connected Tuesday.
AMD shares person astir doubled truthful acold successful 2025.
OpenAI is besides helping AMD acceptable up its next-generation systems based astir its Instinct MI400X AI chips, which vessel adjacent year.
AMD has said that its chips volition beryllium capable to beryllium assembled into a "rack-scale" strategy wherever 72 of its chips enactment unneurotic arsenic one, which is indispensable for moving the largest AI models.
If AMD succeeds astatine its rack, it volition drawback up with Nvidia's AI chips, which person been offered successful rack-scale systems for 3 merchandise generations.
Su said that the institution present sees the full marketplace for AI information halfway parts and systems hitting $1 trillion per twelvemonth successful 2030, representing 40% yearly maturation per year. AMD reported $5 cardinal successful AI spot income successful its fiscal 2024.
That's up from the company's erstwhile forecast of a $500 cardinal marketplace successful 2028 for AI chips. But the updated AMD fig besides includes cardinal processors (CPU), an important benignant of spot that sits astatine the bosom of a computer, but isn't a axenic AI accelerator similar the GPUs made by Nvidia and AMD.
AMD's Epyc CPUs are inactive the company's astir important merchandise by sales. It chiefly competes with Intel and immoderate smaller Arm-based processors successful the CPU market. AMD besides makes chips for crippled consoles, networking parts, and different devices.
On Tuesday, though AMD focused overmuch of its absorption connected its increasing AI business, it told shareholders that its older businesses were increasing too.
"The different connection that we privation to permission you with contiguous is each different portion of our concern is firing connected each cylinders, and that's really a precise bully spot to be," Su said.
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