Advanced Micro Devices (commonly known as AMD) throws down the gauntlet to Nvidia. The Santa Clara-based company announces spectacular growth – annual revenues from data center chips are expected to reach $100 billion by 2030, and profits will triple in the next three to five years. Does AMD intend to compete with Jensen Huang?
A gigantic market at your fingertips
CEO Lisa Su was optimistic during the “Analyst Day” in New York. According to AMD, the data center chip market will grow to a staggering $1 trillion by 2030, and artificial intelligence will be a key driver of this expansion. This is a bold vision, although Jensen Huang from Nvidia talks about even larger numbers – USD 3-4 trillion for the entire AI infrastructure.
Can AMD really threaten Nvidia’s dominance? The recent multi-year partnership with OpenAI, worth tens of billions of dollars annually, is definitely a step in the right direction. Investors reacted positively as the stock is up 16% since October.
Aggressive growth strategy – AMD focuses on the development of AI
The numbers speak for themselves: AMD forecasts 35% annual growth in the entire business and as much as 60% in the data center segment. Earnings per share are expected to increase from the expected USD 2.68 in 2025 to USD 20 within three to five years. This is an ambition worth praising – especially by investors who look hungrily at the AI industry and its impact on hardwear infrastructure.
The company does not rely solely on organic growth. CFO Jean Hu calls AMD an “acquisition machine” – recent acquisitions include server manufacturer ZT Systems and a number of AI startups, including MK1 purchased on Monday. Objective? Build a complete ecosystem from hardware to software.
A new weapon in the arsenal
The premiere of MI400 chips – the next generation of AI accelerators with variants for scientific applications and generative artificial intelligence – is scheduled for 2026. AMD is also preparing complete server racks, a direct response to the popular GB200 NVL72 from Nvidia.
Is AMD really “very, very well positioned” as Su claims? The market will verify, as some people already believe that the AI bubble is starting to burst. Particularly alarming signals of this state of affairs are the continued lack of real profit by, for example, OpenAI, whose market value is estimated at USD 500 million.
Michael Burry, a stock market shark and speculator (he predicted the 2007 real estate crash) explicitly claims that Nvidia and Palantir will collapse under the weight of investors’ unrealistic expectations. He is so confident in his thesis that he bet USD 1 billion on it! The AI and data center market has certainly never been so exciting, and the AI hype continues to grow.
