AMD told analysts on Tuesday that it expects revenue to grow more than 35% each year over the next three to five years, driven by what CEO Lisa Su described as “insatiable” demand for AI chips. According to a report from CNBC, Lisa said the company’s data center unit will lead that growth with an 80% annual increase, pushing it toward tens of billions in sales by 2027. She said that forecast is based on the strength of existing deals and “customers that are currently working very closely with us.” Lisa also told analysts that AMD sees itself grabbing a double-digit share of the AI data center market over the same time frame. She framed it as a goal they are actively working toward. The AI hardware market is currently dominated by Nvidia, which holds more than 90% of the space and sits on a $4.6 trillion valuation. In comparison, AMD has a market cap around $387 billion, and Lisa made it clear they’re coming for more. AMD signs multi‑billion dollar deals to push GPU sales While Nvidia continues to rule the GPU space, AMD remains the only other serious player building this kind of AI hardware at scale. Lisa pointed to a multi-year deal with OpenAI signed in October, where the startup committed to buying billions worth of AMD’s Instinct AI chips, starting with a 1-gigawatt deployment in 2026. The agreement could also give OpenAI a 10% stake in AMD, depending on how things play out. Lisa didn’t stop there. She also mentioned fresh long-term agreements with both Oracle and Meta, showing that AMD is being actively chosen by big names. Shares of AMD have nearly doubled in 2025, even though the stock dropped 3% in after-hours trading on Tuesday after the event. The decline came despite Lisa revealing a gross margin forecast between 55% and 58%, which was better than what most analysts expected. The company is also working closely with OpenAI to launch its next-gen Instinct MI400X chips, which are scheduled to ship in 2026. Lisa said these chips will be assembled into rack-scale systems, with 72 GPUs acting as one, a crucial design for massive AI workloads. This would put AMD in the same league as Nvidia, whose rack systems have already gone through three product cycles. AMD raises total AI market forecast and doubles down on CPUs Lisa laid out a new forecast: the total market for AI data center components and systems could hit $1 trillion per year by 2030, up from their previous estimate of $500 billion by 2028. That’s based on expected 40% annual growth, and the new projection now includes central processing units (CPUs) alongside GPUs. Lisa stressed that AMD’s Epyc CPUs remain the company’s best-selling product, going head-to-head with Intel and Arm-based designs in a competitive market. The company also continues making chips for game consoles, networking, and other devices. While Tuesday’s focus was AI, Lisa told shareholders not to ignore everything else. “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,” said Lisa. This was AMD’s first financial analyst day since 2022, held as the company sits in the middle of a global AI arms race, where tech companies are spending hundreds of billions to build out AI infrastructure. If you're reading this, you’re already ahead. Stay there with our newsletter .
