U.S. fabless chip designer AMD said it expects its data center-related semiconductor market to grow to $1 trillion (about 1,400 trillion won) by 2030. AMD is competing with Nvidia in the artificial intelligence (AI) semiconductor market.
Su Lisa, AMD chief executive officer (CEO), presented the forecast at the company's Analyst Day event in New York on the 11th (local time), saying, "AI will drive most of the growth." The market Su Lisa cited includes AMD's central processing units (CPUs), networking chips, and specialized AI chips.
Su, the CEO, said, "Data centers are the biggest growth opportunity," and added, "AMD has secured a unique position to lead next-generation AI computing based on the broadest product portfolio and strategic partnerships." Jin Hu, AMD chief financial officer (CFO), released a forecast that over the next three to five years AMD will grow 35% annually across all institutional sectors and 60% in its data center business. Earnings per share (EPS) during this period were presented at $20, which is more than six times the full-year 2024 EPS of $3.31 released in Feb.
AMD plans to go head-to-head with Nvidia, which virtually monopolizes the AI Semiconductor market, through its next-generation AI chip MI400 series slated for release next year.It announced the server rack reference design that integrates multiple CPUs and GPUs, aiming to compete with Nvidia's "GB200 NVL72" product.
Su, the CEO, also said that day, "AMD has built a mergers and acquisitions (M&A) machine." AMD recently acquired server maker ZT Systems and AI model optimization corporations MK1 to strengthen its software capabilities and workforce.
AMD also signed a multi-year contract early last month to supply OpenAI, the developer of ChatGPT, with AI chips worth tens of billions of dollars annually. AMD also formed a partnership under which, if certain conditions are met, OpenAI can acquire about 10% of AMD's equity at 1 cent per share.