This article first appeared on GuruFocus.
AMD (NASDAQ:AMD) traded about 5% higher on Wednesday after CEO Dr. Lisa Su told investors the AI data-center market could reach $1 trillion by 2030, according to comments at the company’s analyst day.
Su said demand for AI compute is faster than anything we’ve seen before, and laid out a path for the company to scale data-center revenue to tens of billions by 2027 through new products and rack-scale solutions. AMD also flagged a gross-margin range of 55% to 58%, above some forecasts.
The company highlighted momentum in both GPUs and CPUs. Its Instinct family is now deployed at seven of the top 10 AI players, Su said, and AMD’s EPYC processors account for roughly 40% of server CPU revenue share. AMD expects the upcoming MI450 GPU and Helios rack designs to accelerate cloud deployments and drive further share gains.
Su noted expanded custom-design wins across aerospace, defense and communications that should ramp in 2026 and beyond, and projected a multi-year compound growth runway for data-center AI.
Investors will be watching whether AMD can convert product momentum and design wins into sustained market share and margin expansion as competition in AI infrastructure intensifies.
Source link
