Advanced Micro Devices anticipates that the market for its data center chips and systems will reach $1 trillion by 2030, CEO Lisa Su announced during the company’s analyst day on Tuesday.
AMD shares rose 0.5% to $245.29 on Tuesday afternoon.
According to Su, artificial intelligence will significantly contribute to this growth, impacting markets for AMD’s central processing units (CPUs), networking chips, and specialized AI chips, as discussed at the Nasdaq in New York.
“It’s an exhilarating market,” Su stated. “Undoubtedly, the data center represents the most significant growth opportunity available.”
The chip designer is working to broaden its AI business as competitor Nvidia expands its market share in data center chips amid rapid market growth. AMD has achieved success in the CPU sector, progressively gaining ground against Intel. Nvidia, however, has a more optimistic outlook on the AI infrastructure market. CEO Jensen Huang predicts it will expand to $3 trillion to $4 trillion by 2030.
AMD’s upcoming MI400 series of AI chips, launching in 2026, will feature various models for scientific and generative AI applications. In addition to the MI400 chips, AMD plans to introduce a full server rack, akin to Nvidia’s GB200 NVL72 product.
In her opening remarks, Su emphasized AMD’s recent AI-focused acquisitions, such as server builder ZT Systems and numerous smaller software firms. Su referred to AMD’s creation of “an MA machine.”
Recently, AMD has acquired multiple startups specializing in AI application software development. On Monday, AMD announced its acquisition of MK1. Chief Strategy Officer Mat Hein told Reuters the objective is to ensure AMD has the necessary software and personnel to enhance its AI capabilities.
“We’ll continue to pursue AI software acquisitions,” Hein stated. Last week, the Santa Clara-based company projected fourth-quarter revenue exceeding Wall Street expectations. The demand for AI chips has given AMD executives optimism for the year’s remainder. The company’s data center CPU business has also benefited from increased AI-related expenditures.
The last analyst day was held by AMD in 2022. In October, AMD secured a multiyear agreement with OpenAI, the creator of ChatGPT, expected to generate over $100 billion in new revenue over four years from OpenAI and other clients. As part of the deal, OpenAI will receive warrants to purchase up to a 10% stake in the chipmaker.
The OpenAI agreement provided AMD with a crucial large customer, as it has yet to see the substantial returns from the AI spending boom that Nvidia has experienced.
