Advanced Micro Devices (AMD), Nvidia’s primary competitor in the AI chip market, anticipates significant sales growth in the coming years. CEO Lisa Su announced at a New York event that annual revenue growth is projected to average over 35 per cent for the next three to five years, fuelled by robust demand for its data centre products. AMD provides high-performance computing, graphics, and visualisation technologies. The company’s products are used in computers, gaming consoles, and data centres.
This updated long-term outlook from AMD comes amid rising concerns about the sustainability of current spending levels on new AI computer systems. AMD’s stock has roughly doubled this year, boosted by agreements with companies like OpenAI and Oracle. These partnerships have validated the quality of AMD’s technology and demonstrated its ability to capture a portion of the substantial investments being made in new data centres.
Su also projected that AMD’s AI data centre revenue will increase by an average of 80 per cent annually over the next three to five years. This growth is underpinned by the expanding AI chip market, which includes accelerators, processors, and networking products.
According to Su, the total AI chip market is expected to reach $US1 trillion ($1.5 trillion) by 2030. This forecast underscores the significant opportunities AMD is positioned to capitalise on as it competes in the rapidly evolving AI landscape.
