Advanced Micro Devices (AMD) The company (AMD) anticipates AI ( Artificial Intelligence) The data center boom will continue to drive growth over the next five years. Demand growth.
On November 11th local time, at the Financial Analyst Day event, AMD CEO Lisa Su stated that the market has high expectations for AI chips. The demand is "unmet", and the global data center market, including chips and systems, is expected to grow to $1 trillion by 2030, which means an average annual growth rate of 40%.
Regarding the company's development prospects, Lisa Su expressed confidence, stating that AMD's compound annual growth rate (CAGR) for revenue is expected to reach approximately 35% over the next three to five years, with the majority of revenue coming from the company's data center business, which is projected to grow at a rate of approximately 80% annually, reaching tens of billions of dollars in sales by 2027. In the third quarter of this year, AMD's data center business generated $4.3 billion in revenue.
Lisa Su stated, "Given the clients the company has already announced and those with whom we are currently working closely, we believe this is our potential." She further pointed out that the company's market share in the global data center AI chip market is expected to reach double digits within the next three to five years.
Currently, AMD still faces competition from AI chip leader Nvidia. The company faces immense competitive pressure. Previously, Nvidia CEO Jensen Huang stated in a speech that he predicted total sales of the company's Blackwell series chips and the Rubin series chips, planned for launch next year, could reach $500 billion over the next five quarters.
A week ago, AMD released its third-quarter earnings report ending September 30, 2025. During the reporting period, the company's revenue reached $9.246 billion, an increase of 36% year-over-year; net income under U.S. Generally Accepted Accounting Principles (GAAP) was $1.243 billion, a significant increase of 61% year-over-year.
Financial reports show that AMD's gross margin in the third quarter was 52%, and it expects the gross margin in the fourth quarter to rise to 54.5%, failing to exceed market expectations. At the event, AMD stated that it expects the company's gross margin to reach between 55% and 58% in the next few years.
While AI was central to the event, AMD emphasized that its other businesses are also growing. Lisa Su stated, "Another message we want to convey today is that all other aspects of the company's business are operating at full capacity, which is actually a very good state."
At the event, AMD showcased its updated Ryzen CPU roadmap, confirming that the next-generation Zen 6 architecture will launch in 2026. Zen 7 also appeared for the first time on AMD's roadmap, becoming the company's first CPU based on TSMC 's architecture. CPU architecture using a 2nm process.
On the 11th, AMD (Nasdaq: AMD) shares fell 2.65% to close at $237.52 per share, with a total market capitalization of $386.2 billion. However, AMD's shares rose nearly 5% in after-hours trading.
Not long ago, AMD partnered with OpenAI and Oracle. Oracle and OpenAI have signed a cooperation agreement. OpenAI will deploy up to 6GW (gigawatts) of AMD Instinct GPUs over the next few years, with the first 1GW of equipment going live in the second half of 2026. Oracle subsequently announced that it will deploy 50,000 AMD Instinct MI450 chips in its data centers starting in the third quarter of 2026.
Lisa Su stated that the largest data center owners are increasing their budgets for purchasing new equipment because "they believe AI can bring real value to their businesses": "The speed and pace of AI development is absolutely unprecedented."
When an audience member asked if AMD was concerned that OpenAI might not be able to afford its massive spending plans, Lisa Su emphasized that the cooperation agreement between the two companies was drafted in a "very careful manner." She stated that if OpenAI achieves its expectations for AI user growth and revenue, the funding will be more than sufficient: "I'm not betting on them failing."
(Source: The Paper)
