AMD Chief Executive Lisa Su said on Tuesday that the company's overall revenue growth will expand to about 35% over the next three to five years, a growth that will be driven primarily by "hard-to-met" demand for artificial intelligence chips.

Su Zifeng said that most of this growth will come from the company's AI data center business, which is expected to grow at an annual growth rate of about 80% during the same period and is expected to achieve sales of tens of billions of dollars in 2027.

Su Zifeng told analysts: "This is the potential we see, thanks to customer demand, including announced customers and customers currently working closely with us." He also predicted that AMD is expected to occupy a "double-digit" share of the data center AI chip market in the next three to five years.

Although AMD's stock price fell 3% in after-hours trading, it rose in after-hours trading when AMD said its gross profit margin would be between 55% and 58% in the next few years, exceeding analysts' expectations.

Currently, the AI ​​chip market is dominated by NVIDIA. According to some estimates, NVIDIA's market share exceeds 90%. Nvidia's market capitalization has exceeded $4.6 trillion, while AMD's market capitalization is approximately $387 billion.

Currently, AMD is hosting its first financial analyst conference since 2022, as the company has become the center of a surge in AI spending in data centers.

As companies invest hundreds of billions of dollars in GPU chips as they build and power artificial intelligence applications like OpenAI’s ChatGPT, they are also looking for alternatives to increase production capacity and control costs. AMD is the only large GPU provider besides Nvidia.

In October, AMD announced a partnership with OpenAI and will sell billions of dollars of Instinct AI chips to the AI ​​startup in the next few years. The first batch of chips will provide enough energy to reach 1 gigawatt in 2026.

As part of the agreement, OpenAI may become a 10% shareholder of AMD. Su Zifeng also emphasized the long-term cooperation agreement with Oracle and Meta.

AMD’s stock price has nearly doubled in 2025.

OpenAI also helps AMD build its next-generation system based on the Instinct MI400X AI chip, which is expected to ship next year. AMD said its chips can be assembled into "rack-scale" systems, with 72 chips working together, necessary to run the largest-scale AI models. If AMD successfully launches rack-mounted systems, it will catch up with Nvidia's AI chips, which have provided rack-scale solutions for three product generations.

Su Zifeng said that the company currently expects that the total market for AI data center components and systems will reach US$1 trillion per year by 2030, representing an annual growth rate of 40%. AMD reported $5 billion in AI chip sales in fiscal 2024.

This figure is higher than the company’s previous forecast of an AI chip market size of US$500 billion in 2028. But AMD's latest numbers also include the central processing unit (CPU), the computer's core chip, although it's not a pure AI accelerator like Nvidia and AMD's GPUs.

AMD's Epyc CPU remains the company's highest-selling product. It competes primarily with Intel and some smaller Arm-based processors. AMD also makes chips for game consoles, networking components and other devices.

While AMD is focusing most of its attention on its growing AI business on Tuesday, Su told shareholders that the company's other businesses are also growing. Su Zifeng concluded: "Another piece of information we want to tell you today is that other parts of our business are also growing strongly, which is a very good state."