Key Takeaways
- AMD forecasts the data center chip market will reach $1 trillion by 2030
- CEO Lisa Su announced the projection at the company’s analyst day event
- AMD’s next-generation MI400 AI chips are scheduled for 2026 launch
- The company secured a major multiyear deal with OpenAI worth over $100 billion
Advanced Micro Devices (AMD) has projected that the global market for data center chips will expand to $1 trillion by 2030, according to CEO Lisa Su. She made the announcement during the company’s analyst day event held at the Nasdaq in New York.
Artificial intelligence is expected to be the primary driver behind this massive market growth, which will encompass AMD’s central processing units, networking chips, and specialized AI processors.
AMD’s Position in the AI Revolution
“It’s an exciting market,” Su stated. “There’s no question, data center is the largest growth opportunity out there, and one that AMD is very, very well positioned for.”
The chip designer is aggressively expanding its AI business while competing with Nvidia, which currently dominates the data center chip market. AMD has maintained success in the CPU segment, consistently gaining market share against Intel.
Notably, Nvidia CEO Jensen Huang has projected an even larger $3-4 trillion AI infrastructure market by 2030.
Next-Generation Products and Strategy
AMD’s upcoming MI400 series of AI chips, scheduled for 2026 release, will feature multiple variants tailored for scientific applications and generative AI. The company also plans to introduce complete server racks, similar to Nvidia’s GB200 NVL72 product.
During her presentation, Su emphasized AMD’s recent strategic acquisitions, including server builder ZT Systems and several software companies. She described the company as having built “an M&A machine.”
Chief Strategy Officer Mat Hein confirmed the company’s ongoing strategy: “We’ll continue to do AI software tuck-ins” to ensure AMD has access to necessary software and talent for building AI capabilities.
Financial Performance and Major Deals
AMD recently reported better-than-expected fourth-quarter revenue forecasts, with AI chip demand driving executive optimism. The company’s data center CPU business has also benefited from increased AI-related spending.
In a significant development, AMD secured a multiyear agreement with ChatGPT creator OpenAI in October. The deal is expected to generate over $100 billion in new revenue over four years from OpenAI and other customers. As part of the arrangement, OpenAI received warrants to purchase up to 10% stake in the chipmaker.
This partnership represents a crucial large-customer arrangement for AMD, which hasn’t yet captured the massive returns from AI spending that Nvidia has achieved. AMD shares closed down 2.3% at $238.31 following the analyst day event.
