Advanced Micro Devices (AMD) has set an ambitious target for its data center chip business, forecasting that the market could hit $1 trillion by 2030, driven largely by artificial intelligence.
Chief Executive Officer Lisa Su made the projection during the company’s analyst day in New York, highlighting AI as the most transformative force shaping the industry’s future.
“It’s an exciting market,” Su told investors. “There’s no question, data center is the largest growth opportunity out there, and one that AMD is very, very well positioned for.”
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The trillion-dollar market projection includes AMD’s central processing units (CPUs), networking chips, and specialized AI accelerators—areas where the company has been aggressively investing to compete with rivals Nvidia and Intel. While AMD has carved out a strong position in the CPU market, Nvidia continues to dominate AI data center chips with its powerful GPUs, including the widely used H100.
AMD is now betting that its next-generation AI hardware and acquisitions will help close that gap. Its upcoming MI400 series—set for release in 2026—will feature chips optimized for generative AI and scientific applications. The company is also developing a full server rack system to rival Nvidia’s GB200 NVL72, signaling its intention to compete across the full AI infrastructure stack.
Chief Financial Officer Jean Hu told investors that AMD expects its overall business to grow by 35% annually and its data center segment by 60% over the next three to five years. The company also projects earnings to rise to $20 per share in that timeframe. Following the announcement, AMD’s stock gained nearly 4% in after-hours trading, after closing down 2.7% at $237.52.
The optimism comes amid a broader race to capture the AI hardware market, which Nvidia CEO Jensen Huang recently valued at between $3 trillion and $4 trillion by the end of the decade. AMD’s projection, while more conservative, underscores the enormous expectations around the long-term AI buildout—from cloud computing and hyperscale data centers to edge and enterprise deployments.
AMD’s expansion strategy includes a string of acquisitions aimed at strengthening its AI and data center ecosystem. Over the past year, it has acquired companies such as ZT Systems, a server manufacturer, and several software startups focused on AI applications. On Monday, it announced the acquisition of MK1, a move intended to bolster its AI software expertise.
“We’ll continue to do AI software tuck-ins,” Chief Strategy Officer Mat Hein told Reuters, adding that the acquisitions are as much about acquiring talent as technology.
The company’s recent partnership with OpenAI marks one of its most significant strategic wins yet. Under a multiyear deal signed in October, AMD will supply chips for OpenAI’s infrastructure, a contract estimated to generate more than $100 billion in revenue over four years from OpenAI and other related customers. In return, OpenAI will receive warrants allowing it to purchase up to a 10% stake in AMD—a rare equity-linked arrangement that reflects the growing interdependence between AI developers and chip suppliers.
The partnership also gives AMD a direct foothold in the high-performance AI computing market, an area in which it has lagged compared to Nvidia. Analysts view the deal as a critical inflection point for AMD, which until recently had been overshadowed by Nvidia’s dominance in AI accelerators.
AMD’s last analyst day was in 2022, before the generative AI wave reshaped global chip demand. Since then, the Santa Clara-based company has sought to pivot from being primarily a CPU manufacturer into a diversified AI computing powerhouse. The timing appears favorable: data center operators and cloud firms worldwide are racing to expand infrastructure for AI workloads, a trend that could keep demand elevated for years.
Still, the competitive landscape remains unforgiving. Nvidia continues to capture the lion’s share of AI spending, while Intel is repositioning itself through its Gaudi AI chips and new manufacturing strategy. Yet AMD’s combination of a diversified chip portfolio, strategic acquisitions, and a landmark partnership with OpenAI could help it capture a meaningful share of the projected trillion-dollar market.
Now, AMD’s future is believed to rest on how effectively it can merge its hardware strength with AI-specific software and systems integration—turning its growing presence in CPUs into a full-fledged player across the AI computing spectrum.