AMD Anticipates 35% Annual Revenue Growth, CEO Lisa Su Outlines AI Strategy
After the first Analyst Day in three years, AMD set a target of 35% annual revenue growth for the next three to five years. In another interview, CEO Lisa Su further explained the company's confidence, based largely on the explosive growth of the AI data center market-which AMD expects will grow at 80% annually.
Confidence Driven by an Accelerating AI Market
Regarding the confidence behind the ambitious 35% growth projection, Su pointed toward an "amazing cycle for technology," particularly around artificial intelligence, stating that this market is accelerating at a pace not seen before; the total addressable market (TAM) for AI accelerators is being regarded as a possibly massive opportunity exceeding $1 trillion by 2030.
According to Su, the demand is indeed real and sustainable, based on ecosystem feedback.
"We've seen every one of our largest customers say, we can see the inflection point now,"she said, referencing that enterprises are beginning to achieve real productivity from AI use cases and that, in turn, has led the largest hyperscalers in the world to invest in capital expenditures as they can see the return.
AI Investment: "The Right Gamble"
Su responded to whether the heavy investment in AI is a gamble; she called it "the right gamble." While she said the timing of the ROI is "a little fuzzier," she stated that these large customers are disciplined companies, and investing more in computing means faster innovation. The thinking behind that is, computing is now a limiting factor in AI adoption, and companies need to invest ahead of the curve to capture user growth.
Strategy for the AI Data Center Market
With competitors like Nvidia in control of a big share of the market, AMD's plan to claim a share for itself in the AI data center business is innovation partnering. Su noted that there is room for all kinds of solutions in the growing market.
AMD's strategy includes:
- A Robust Product Roadmap: The MI350 series is in production, with rack-scale architecture coming next year.
- Partnerships with Key Players in the Industry: AMD has partnerships with all the large hyperscalers, Oracle and Meta included, as well as with AI companies of note like OpenAI.
- Multiple Solution Offerings: As Su stated, "There's no one solution that fits all," with different workloads requiring the best technology for each specific use case.
Through this multi-faceted approach, AMD believes it will secure a huge chunk of the fast-growing AI market.
