AMD's Lisa Su sees 35% annual sales growth driven by 'insatiable' AI demand

Core Insights - AMD's overall revenue growth is projected to expand to approximately 35% per year over the next three to five years, driven by high demand for AI chips [1][2] - The AI data center business is expected to grow at about 80% per year, potentially reaching tens of billions in sales by 2027 [2] - AMD aims to capture a "double-digit" market share in the data center AI chip market within the next three to five years, currently dominated by Nvidia [3] Company Developments - AMD is experiencing a surge in data center spending for AI, with companies investing hundreds of billions in GPU chips for AI applications [4] - A partnership with OpenAI was announced, involving the sale of billions of dollars in Instinct AI chips, starting with enough chips in 2026 to utilize 1 gigawatt of power [5] - Long-term deals with Oracle and Meta were also highlighted, indicating strong customer traction [5] Market Context - The AI chip market is currently led by Nvidia, which holds over 90% market share and has a market cap exceeding $4.6 trillion, compared to AMD's valuation of approximately $387 billion [3] - AMD is positioned as the only other major GPU developer aside from Nvidia, providing an alternative for companies seeking to increase capacity and control costs [4]