Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) shares surged 10% to $261 after CEO Lisa Su laid out an ambitious roadmap to expand its presence in the artificial intelligence (AI) data centre market, forecasting a 60% rise in data centre revenue over the next three to five years.
The company expects sales from the division to grow from $16 billion in 2025 as it seeks to win business from long-time rival Nvidia.
Su told investors at the company’s Financial Analyst Day in New York that AMD sees the total addressable market for AI data centres reaching $1 trillion within five years. That figure includes everything from chips and networking hardware to entire rack-scale systems.
Chief financial officer Jean Hu said total company revenue should climb about 35% over the same period, from $34 billion in 2025, with most of that growth driven by demand for AI infrastructure. Hu also guided to gross margins between 55% and 58% and operating margins above 35%.
AMD is already working to position itself at the heart of large-scale AI infrastructure projects. It has announced a 6-gigawatt deal with OpenAI and a plan to deliver 50,000 processors to Oracle, both due to begin in 2026.
While no new contracts were disclosed, Su said the company sees “multiple gigawatt-scale” opportunities for its MI450 chips and Helios rack systems across major cloud providers and emerging sovereign AI programmes.
Alongside its accelerator line-up, AMD plans to increase its share of the data centre CPU market to around 50%, up from 40% currently, and expects its client computing division, covering PCs and gaming, to grow revenue by more than 10% over the next five years.
The company also confirmed work on its next-generation MI500 processors, which remain under wraps.
Analysts have questioned how AI data centre operators will meet the huge power and financing demands of such expansion. Su argued that strong underlying demand should support long-term investment.
“This is a very unique moment in AI,” she said, noting that the industry should not focus only on short-term returns.
The company’s management emphasised that, unlike the early 2000s tech boom, AI firms are already generating meaningful revenue.
With its expanded chip range and growing customer pipeline, AMD is betting that its combination of graphics and central processors can carve out a larger share of the fast-growing AI computing market.