New York/San Francisco — Advanced Micro Devices expects the market for the company’s data centre chips and systems will reach $1-trillion by 2030, CEO Lisa Su said at the company’s analyst day on Tuesday.
AMD shares were down 1.8% at $239.61 in mid-afternoon trading on Tuesday.
AI will drive much of the growth to the trillion-dollar figure, a market that includes AMD’s central processing units (CPUs) and networking chips, along with its specialised AI chips, Su said at the gathering at the Nasdaq in New York, the first event since 2022.
“It’s an exciting market,” Su said. “There’s no question, data centres are the largest growth opportunity out there.”
There’s no question, data centres are the largest growth opportunity out there.
— Lisa Su, AMD CEO Lisa Su
The chip designer has been trying to expand its AI business while rival Nvidia gobbles up market share for data centre chips as the market explodes. AMD has been successful in the CPU business, steadily taking share against Intel.
Nvidia has a more optimistic view of the AI infrastructure market. CEO Jensen Huang has said it will grow to between $3-trillion and $4-trillion by 2030.
AMD’s MI400 series of AI chips are set to launch in 2026 and include several variants designed for scientific applications and for generative AI. In addition, AMD also plans to launch a complete server rack, similar to a product Nvidia sells, called the GB200 NVL72.
Su highlighted AMD’s recent AI-related acquisitions, including the server builder ZT Systems and a slew of smaller software companies. AMD has built “an M&A machine”, Su said.
AMD has acquired a batch of start-ups this year that focus on building software needed to run AI applications. On Monday, AMD said it bought MK1. The plan is to ensure AMD has access to the appropriate software and the people it needs to build its AI capabilities, CSO Mat Hein said.
“We’ll continue to do AI software tuck-ins,” Hein said. Last week, the California-based company forecast fourth-quarter revenue that topped Wall Street estimates. Demand for AI chips gave AMD executives a reason for optimism about the remainder of the year. The company’s data centre CPU business has also benefited from the surge in AI-related spending.
AMD signed a multiyear deal with ChatGPT creator OpenAI in October that will bring the company more than $100bn in new revenue over four years from OpenAI and other customers. As part of the arrangement, OpenAI will receive warrants that allow it to buy as much as 10% of the chipmaker.
The OpenAI arrangement is a much-needed large customer for AMD, which has not yet captured the huge returns from the boom in AI spending as Nvidia has.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.