Advanced Micro Devices (AMD) anticipates that the market for its data center chips and systems will grow to $1 trillion by 2030, as stated by CEO Lisa Su during the company’s analyst day on Tuesday.
On Tuesday afternoon, AMD shares saw a 0.5% increase, reaching $245.29.
Artificial intelligence is expected to drive much of the growth toward this trillion-dollar figure. This market includes AMD’s central processing units (CPUs), networking chips, and specialized AI chips, according to Su at the Nasdaq in New York.
“It’s an exciting market,” Su commented. “There’s no question, data center is the largest growth opportunity out there.”
The chip designer has been working to expand its AI business as rival Nvidia rapidly gains market share in data center chips amid the market boom. AMD has been successful in the CPU business, gradually gaining market share against Intel. Nvidia, however, has a more optimistic outlook on the AI infrastructure market, with CEO Jensen Huang projecting it to grow to $3 trillion to $4 trillion by 2030.
AMD’s next-generation MI400 series of AI chips is set to launch in 2026, featuring several variants designed for scientific applications and generative AI. In addition to the MI400 chips, AMD plans to launch a complete server rack, akin to Nvidia’s GB200 NVL72 product.
In her opening remarks, Su emphasized the company’s recent AI-related acquisitions, which include server builder ZT Systems and several smaller software companies, describing AMD as having built “an MA machine.”
In recent months, AMD has acquired several startups focusing on software development necessary for running AI applications. On Monday, AMD announced the acquisition of MK1. The goal is to ensure that AMD has access to the necessary software and talent to build its AI capabilities, as stated by Chief Strategy Officer Mat Hein in an interview with Reuters.
“We’ll continue to do AI software tuck-ins,” said Hein. Last week, the Santa Clara, California-based company projected fourth-quarter revenue exceeding Wall Street estimates. The demand for AI chips has given AMD executives optimism for the remainder of the year. The company’s data center CPU business has also benefited from the increase in AI-related spending.
The company last held an analyst day in 2022. In October, AMD signed a multiyear deal with ChatGPT creator OpenAI, expected to bring the company over $100 billion in new revenue over four years from OpenAI and other customers. As part of the agreement, OpenAI will receive warrants allowing it to purchase up to a 10% stake in the chipmaker.
The arrangement with OpenAI was a crucial acquisition for AMD, which has yet to see the substantial returns from the AI spending boom that Nvidia has experienced.
