Advanced Micro Devices (AMD) CEO Lisa Su said she believes the data center market will be worth $1 trillion by 2030.
AMD stock rose 5% in premarket trading on Wednesday following the news.
Su made the announcement during the chipmaker’s Financial Analyst Day in New York on Tuesday, where she outlined the company’s revenue growth and projections for its performance moving forward.
Su also revealed 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,” Su 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,” she added.
AMD has made a series of splashy announcements over the past few months, including 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.
That, she said, would work out to an 80% compound annual growth rate (CAGR) in AI revenue over the next three to five years.
AMD is in a battle to grab market share from Nvidia (NVDA), which continues to dominate the majority of the AI data center market. Nvidia’s market capitalization now sits at $4.7 trillion, though it previously climbed above $5 trillion. AMD’s market cap is $396 billion.
Still, the company believes it will see significant overall growth going forward. In addition to taking on Nvidia in the AI GPU market, AMD is battling and stealing market share from Intel (INTC) in the CPU data center space.
Su said the company has a clear path to capturing more than 50% of server revenue market share, up from 40% today, and that the company’s data center business will see a CAGR of 50%.
On the PC market side, AMD expects to grab 40% of revenue over the next three to five years, up from 20% revenue share today.
In total, Su said AMD will see a CAGR of 35% over the next three to five years.
AMD has been steadily pulling market share away from Intel as that company continues to work through its massive turnaround effort.
For its third quarter, AMD topped analysts’ expectations on earnings and revenue and provided strong fourth quarter guidance.