Lisa Su: AI chip demand is limitless, AMD is expected to reach hundreds of billions in revenue before 2027.

Supermicro Semiconductor ( AMD ) CEO Lisa Su ( announced this morning on November 12 that the company expects overall revenue to grow at an annual rate of 35% over the next 3 to 5 years, primarily driven by the endless global demand for AI chips. She pointed out that AMD's AI data center business will become a growth market maker, with an estimated annual growth rate reaching 80%, and is expected to achieve billions of dollars in revenue scale before 2027.

AI chip demand explodes, AMD targets a 35% year-on-year growth.

Lisa Su stated that AMD will benefit from the explosive global demand for AI chips, and the company's overall revenue growth is expected to maintain at around 35% per year.

She specifically pointed out that AMD's main growth driver for future revenue will come from the company's AI data center business. This sector is expected to grow at a rate of about 80% per year in the coming years, and if this trend continues, revenue is expected to reach several billion dollars by 2027. This growth momentum also comes from partnerships with large customers, including those already announced and those yet to be disclosed.

The goal is to achieve double-digit market share in AI data center chips within 3 to 5 years.

Currently, the global AI data center chip market is monopolized by Nvidia, with a market share exceeding 90%. Lisa Su pointed out that AMD expects to achieve a “double-digit market share” in this field within the next 3 to 5 years, indicating that the company is confident in gradually establishing a foothold in the Nvidia-dominated market.

After the announcement, AMD's after-hours stock price still fell by more than 2%. However, due to the company's forecast that the gross margin will remain between 55% and 58% in the coming years, which is higher than analysts' expectations, the overall market reaction remains positive.

Long-term cooperation with OpenAI and Oracle, Instinct chips become the key

Lisa Su also emphasized that AMD is engaging in deep collaborations with several large enterprises. In October, the company announced a multi-year supply agreement with OpenAI, selling billions of dollars' worth of Instinct AI chips to OpenAI, with the first shipments scheduled for 2026, amounting to a total computational capacity of 1,000 megawatts.

The image shows the AMD Instinct AI chip.

According to the agreement, OpenAI may hold approximately 10% equity in AMD in the future. Additionally, AMD has signed long-term cooperation agreements with companies such as Oracle and Meta, further solidifying its position in the AI chip market.

Target to catch up with NVIDIA's “rack-level” AI chip architecture

Lisa Su stated that OpenAI is also assisting AMD in deploying the next generation of systems, which will use the upcoming Instinct MI400X chip to be launched next year.

This chip can form a “rack-scale” )Rack-Scale( architecture, allowing 72 chips to work together to support large AI model training, aiming to catch up with NVIDIA, which has already led in this area for three generations.

The image shows CEO Dr. Lisa Su announcing the revised AI data center market scale for the AMD Helios project at the 6/13 Keynote conference, reaching 1 trillion dollars annually by 2030.

AMD predicts that the total market size for AI data center chips and systems will reach $1 trillion annually by 2030, with a growth rate of approximately 40%. This forecast significantly revises the company's previous valuation of $500 billion for 2028 and for the first time includes the CPU market in its statistics.

Lisa Su stated that although CPUs are not chips specifically designed for AI acceleration, they are still an indispensable core component of the entire AI computing architecture. AMD's Epyc series server processors remain the company's main revenue-generating products, primarily competing with Intel and some processor manufacturers that use Arm architecture.

Traditional business continues to maintain growth momentum, and the status is quite ideal.

In addition to AI chips, AMD also emphasized that its traditional business performance is outstanding, covering gaming consoles, networking equipment, and other chip areas. Dr. Lisa Su concluded by stating:

“Another key point we want to convey today is that the other businesses of the company are also operating at full speed, which is actually a very ideal situation.”

As of now, AMD has risen from this year's low price of $76.48 to $267.08, an increase of approximately 246%.

This article Su Zifeng: AI chip demand is limitless, AMD is expected to reach hundreds of billions in revenue before 2027, first appeared in Chain News ABMedia.