AMD CEO Lisa Su announced on Tuesday that the total revenue growth of the company would grow to approximately 35 percent annually within the next three to five years due to the “insatiable” demand for artificial intelligence chips.
Su noted that much of that would be reflected in the AI data center business of the company, which it believes will increase at a rate of approximately 80 percent per annum in the same period, and will achieve tens of billions of dollars of sales in 2027.
Su reported to analysts that “This is what we see as our potential given the customer traction, both with the announced customers, as well as customers that are currently working very closely with us.”
She indicated that within the following three to five years, AMD might be capable of attaining a “double-digit” share in the market of data center AI chips.
However, the AMD shares dropped by 3 percent in the prolonged trading. The stocks gained during the extended trading hours as AMD declared that its gross margins over the next few years would be between a range of 55-58 percent, which was higher than the analysts had projected.
According to some estimates, Nvidia is already controlling the market with over 90 percent market cap in the AI chip market, which has made the company over $4.6 trillion market value, compared to the estimated value of AMD at $387 billion.
AMD has been hosting its inaugural financial analyst day since 2022, with the company having been caught amid a surge in AI-driven data center spending.
As firms are collectively incurring hundreds of billions of dollars on the overall acquisition of graphics processing unit (GPU) chips to develop and operate artificial intelligence applications such as the OpenAI ChatGPT, they are also identifying alternative methods to expand capacity and manage costs.
Meanwhile, AMD is the other big developer of GPUs other than Nvidia.
AMD declared in October that it had partnered with OpenAI, where AMD would sell the AI company billions of dollars in its Instinct AI chips over a series of years, beginning with the requirement to have enough chips to consume 1 gigawatt of power in 2026.
OpenAI might also end up acquiring a 10 percent stake in the chipmaker as part of the deal. Su also emphasized long-term contracts with Oracle and Meta on Tuesday. The stocks of AMD have already increased almost twice in 2025.
OpenAI is also assisting AMD to have its next-generation systems established around its Instinct MI400X AI chips that will be shipped next year.
AMD has indicated that its chips can be configured to create a “rack-scale” system in which 72 of its processors collaborate as a single unit, which is necessary to execute the biggest AI models.
Provided AMD manages to win over its rack, it will align with the AI chips in Nvidia that have been available in rack-scale systems over three generations of products.
According to Su, the company has seen the overall market of AI data center parts and systems reach up to $1 trillion annually in 2030, equating to 40 percent yearly growth.
In its fiscal 2024, AMD announced the sale of AI chips amounting to $5 billion. That is compared to the previous estimates by the company of a $500 billion market in AI chips in 2028.
Gradually, the modified figure of AMD also encompasses central processors (CPU), a significant category of chips residing at the core of a computer, and yet not an actual accelerator of AI like the Nvidia and AMD GPUs.
The most significant sales product of AMD remains to be the Epyc CPUs, it is mainly competing with Intel, and there are also smaller ARM-based processors in the market.
AMD is also involved in producing game console chips, networking chips, and other chips.
Despite the fact that AMD concentrated much of its attention on its emerging AI business, it informed shareholders that older businesses were also expanding on Tuesday.
Su added that “The other message that we want to leave you with today is every other part of our business is firing on all cylinders, and that’s actually a very nice place to be.”
