AMD Predicts Profits Will Triple by 2030 as It Targets a $1 Trillion Data Center Chip Market
Advanced Micro Devices (AMD) is setting its sights high — very high. The chipmaker announced that it expects its annual data center chip revenue to hit $100 billion within the next five years and for its profits to more than triple by 2030.
The bold forecast came during AMD’s analyst day in New York, marking the company’s first such event in three years. CEO Lisa Su outlined an aggressive growth strategy centered around artificial intelligence and data center technologies, industries currently driving the global semiconductor boom.
Data Centers and AI to Power AMD’s Future
According to Su, AMD expects the data center market to reach $1 trillion by 2030, fueled by explosive demand for AI, networking, and cloud computing. “It’s an exciting market,” she said. “There’s no question that data center is the largest growth opportunity out there, and one that AMD is very, very well positioned for.”
AMD’s finance chief Jean Hu added that the company expects 35% annual growth across all businesses and a massive 60% growth in its data center division over the next three to five years. Hu also projected AMD’s earnings could climb to $20 per share in that period, a dramatic leap from the current estimates of $2.68 per share for 2025.
Stock Boost and Confidence from OpenAI Deal
Investors reacted positively. AMD shares jumped about 4% in after-hours trading, rebounding after a slight dip earlier in the day. The optimism comes on the heels of AMD’s multiyear partnership with OpenAI, announced in October, which could generate tens of billions in annual revenue.
While Nvidia remains the dominant player in AI chips, AMD’s growing partnerships and new product lines are seen as a major vote of confidence in its ability to compete.
Competing with Nvidia’s Vision
Nvidia CEO Jensen Huang has projected the global AI infrastructure market could balloon to $3 trillion–$4 trillion by 2030. AMD’s estimates put its slice of the data center chip sector at around $1 trillion, suggesting plenty of room for growth across the industry.
New Chips and AI Acquisitions
AMD also revealed its next-generation MI400 series of AI chips, scheduled for launch in 2026. These chips will target scientific computing and generative AI applications — areas where Nvidia’s GPUs currently dominate. Alongside the MI400 series, AMD plans to debut a complete server rack system, similar to Nvidia’s GB200 NVL72 supercomputer setup.
The company’s rapid AI expansion has been supported by a string of strategic acquisitions. AMD has recently purchased ZT Systems, a server builder, as well as several AI-focused software startups, including MK1.
Chief Strategy Officer Mat Hein told Reuters, “We’ve built an M&A machine. We’ll continue to do AI software tuck-ins to strengthen our ecosystem.”
A Promising Outlook
AMD’s projections indicate strong confidence in both its technology and market positioning. Demand for AI chips and data center processors continues to surge, helping AMD’s fourth-quarter revenue forecast beat Wall Street expectations.
The company’s focus on AI infrastructure, combined with its deep partnerships and continued innovation, positions it as a formidable challenger to Nvidia’s dominance in the years ahead.
As Lisa Su put it, “We’re entering a new era for computing — and AMD intends to be at the center of it.”
