AMD’s Data Center Chip Revenue to Touch $1T by 2030, Overall Revenue to Grow by 35%
Earlier this month, AMD announced its Q3 results and posted revenue at $9.2 billion, up 36% YoY. Under it, the data center segment constituted $4.3B, up 22% YoY.
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California-based chipmaker Advanced Micro Devices (AMD) expects its annual data center chip revenue to hit $1 trillion in the next five years, with overall earnings projected to triple during the same period, CEO Lisa Su said at the company’s financial analyst day on Tuesday. The optimism rides high on the AI chip demand and the company’s latest multiyear deal with OpenAI.
“It’s an exciting market,” Su said. “There’s no question, data center is the largest growth opportunity out there, and one that AMD is very, very well positioned for.”
The company reported $5 billion in AI chip sales last year. Notably, Nvidia CEO Jensen Huang feels the figure can touch $3-$4 trillion during the period.
The AMD-OpenAI deal has propelled its stock to rise by 16% since October.
Meanwhile, financial chief Jean Hu shared that AMD expects the overall revenue to grow about 35% YoY over the next 3-5 years, on the back of AI chip demand. The AI chipset market, valued at $56.8 billion in 2023, is expected to reach $323.1 billion by 2030, according to Grand View Research.
AMD’s much anticipated launches include the next-generation MI400 series of chips slated for a 2026 release, along with the launch of a complete server rack, like that of Nvidia’s GB200 NVL72.
Su also highlighted AMD’s acquisition spree in recent months. The Nvidia rival has acquired a set of startups to focus on building software needed to run AI applications, with the latest deal being signed on Monday for MK1.
“We’ll continue to do AI software tuck-ins,” said Chief Strategy Officer Mat Hein to Reuters, hinting at the aim of AMD having access to appropriate talent and technology.
The chip space is currently dominated by Nvidia, which commands over 90% of the market share, giving the company a market capitalization of over $4.6 trillion, as compared to AMD’s about $387 billion valuation.
Earlier this month, AMD announced its Q3 results and posted revenue at $9.2 billion, up 36% y-o-y. Under it, the data center segment constituted $4.3B, up 22% YoY. “Our continued investments in AI and high-performance computing are driving significant growth and positioning AMD to deliver long-term value creation,” said Hu.
