On November 11th local time, at an analyst day event in New York, AMD CEO Lisa Su stated that by 2030, data centers... The chip and systems market is expected to expand to $1 trillion. She believes that artificial intelligence... AI will become the core driver of this growth.
“This is an exciting market. There’s no doubt that data centers represent the biggest growth opportunity, and our positioning is very accurate,” said Lisa Su. She mentioned that this market encompasses central processing units (CPUs), network chips, and specialized artificial intelligence accelerators.
Artificial intelligence drives explosive growth in data centers
With the rapid spread of AI applications, from cloud computing With the advent of large-scale language models, the global data center industry is experiencing structural expansion. Lisa Su stated that the evolution of artificial intelligence is driving a comprehensive upgrade of the entire ecosystem, from hardware architecture to software tools, to support the massive computing power required for training and inference.
At the event, AMD CFO Jean Hu stated that overall revenue is projected to grow at an average annual rate of approximately 35% over the next three to five years, with data center-related businesses expected to grow at an average annual rate of 60%. Driven by the AI investment boom, data centers have become a key area for semiconductors. The sector with the greatest growth potential in the industry.
According to its financial report, AMD's revenue reached $9.246 billion in the third quarter, a year-on-year increase of 36%; of which, the data center segment accounted for approximately $4.3 billion, a year-on-year increase of 22%, representing nearly half of the total revenue. The company's guidance projects fourth-quarter revenue of approximately $9.6 billion, with a non-GAAP gross margin of approximately 54.5%.
Lisa Su believes that AI will drive the restructuring of the entire infrastructure market, with enterprise customers accelerating the replacement of legacy architectures to improve energy efficiency and model training speed. "Data centers have become a fundamental pillar of the artificial intelligence era," she said.
The competition for computing power has entered a new stage.
Amidst the escalating AI computing power race, consolidation within the semiconductor industry is accelerating significantly. Lisa Su noted that recent M&A activity has focused on AI servers and software, aiming to strengthen system-level capabilities and ecosystem compatibility. She described her team as building "an M&A machine" to gain the upper hand in the integrated hardware and software competition.
She revealed that the next-generation MI400 series AI chip Expected to launch in 2026, the product line will cover scientific computing and generative AI tasks, while also providing whole-machine server systems to meet customers' needs for integrated computing solutions.
To strengthen its AI ecosystem, AMD announced this week the acquisition of AI software company MK1. Chief Strategy Officer Matt Hein stated that the development of artificial intelligence requires companies to possess both hardware performance and software capabilities, and the team will continue to improve the ecosystem through small AI software acquisitions (tuck-ins) to "ensure the long-term competitiveness of the computing platform."
At the same time, market competition intensified further. Nvidia CEO Jensen Huang predicts that the broader AI infrastructure market could reach $3 trillion to $4 trillion by 2030. Industry analysts believe that data center chips are at the heart of this growth wave.
In her concluding remarks, Lisa Su stated that artificial intelligence is not only changing the way chips are designed, but is also reshaping the economic logic of data centers—from energy consumption and heat dissipation to capital efficiency. "We are in an era where the way we compute is being completely rewritten."
(Article source: CBN)
