Advanced Micro Devices (AMD) CEO Lisa Su has reiterated that artificial intelligence spending is not going to slow down anytime soon. At the company’s first analyst day since 2022, Su updated the size of the total addressable market for the AI data center and said she now sees it hitting $1 trillion by 2030, up from a previous estimation of $500 billion.
“I think we’ve been very consistent that high performance computing is the foundation of everything that’s important,” Su said during the presentation. “We’ve added AI and high performance computing because AI is such a large part of it. When we look at where we are today, AMD computing touches billions of people every day.”
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Su, who has been leading AMD since 2014 said “that the rate and pace of change in AI is higher” than anything she has seen before. “If you ask customers today, they say, ‘We need to invest more in AI infrastructure.’ There is a real belief that AI compute equates to intelligence.”
She added that companies with the capability, particularly those with strong balance sheets, will have an “incremental advantage” compared to the competition. “There’s just insatiable demand.”
In an interview with CNBC’s “Squawk Box” on Wednesday, Su dismissed concerns over increasing AI spending. “I don’t think it’s a big gamble,” she said. “I think it’s the right gamble.” She also mentioned that many of AMD’s hyperscaler customers over the last 12 months have beefed up spending as the technology reaches an “inflection point” and companies can see the return on that spending.
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Su had also said during analyst day that the firm is seeing strong momentum with multiple gigawatt-scale project opportunities for its MI450 series chips and Helios rack-scale offerings across hyperscalers, AI-native companies, and sovereign AI businesses. “There’s no question, data center is the largest growth opportunity out there, and one that AMD is very, very well-positioned for,” she said.
“We have now all of the pieces to deliver full AI factories, and that is really our goal throughout this entire stack, across CPUs, GPUs, software, networking, and our cluster-level systems design,” Su added.
AMD has made some major announcements recently. These include a deal to supply OpenAI with six gigawatts of GPUs and to provide Oracle with an additional 50,000 chips. As a result, Su said the company’s data center business is on track to make tens of billions of dollars of revenue in 2027 and sees a clear path to a double-digit share of the AI data center market.