AMD is gearing up for massive growth, with overall sales expected to climb about 35% each year over the next three to five years. According to CEO Lisa Su, the main driver behind this surge is the booming demand for artificial intelligence chips—a market she describes as “insatiable.”

Most of that growth will come from AMD’s AI data center division, which the company believes could expand at a staggering 80% annual rate. If that pace continues, AMD’s AI business alone could be pulling in tens of billions of dollars in revenue by 2027, positioning it as a major force in the global AI hardware race.

AMD is setting its sights on capturing a double-digit share of the data center AI chip market within the next three to five years. It’s an ambitious goal in a space currently ruled by Nvidia, which commands over 80% of the market. While AMD’s market value is about $387 billion, its rapid push into AI could help narrow that gap in the years ahead.

As companies pour hundreds of billions of dollars into powerful GPU chips to fuel artificial intelligence tools like OpenAI’s ChatGPT, many are now searching for cost-effective alternatives to boost performance and manage expenses. In this high-stakes race, AMD stands out as the only major rival to Nvidia in developing GPUs built for AI workloads.

AMD expects the AI data center market, covering both parts and full systems, to reach $1 trillion in annual value by 2030, growing at an impressive 40% each year. In its latest fiscal year, AMD generated $5 billion in AI chip sales, marking a strong start in a market that’s expanding at lightning speed.

That new estimate marks a big jump from AMD’s earlier projection, which pegged the AI chip market at $500 billion by 2028. However, the updated forecast now includes central processing units (CPUs) — the core chips that power computers — in addition to AI-focused GPUs from companies like Nvidia and AMD.

AMD’s Epyc CPUs remain the company’s top revenue driver, anchoring its business in the competitive CPU market. Beyond CPUs, the company also designs processors for gaming consoles, networking equipment, and a range of other devices, showcasing its broad reach across the tech landscape.

While AMD highlighted its rapidly expanding AI division, the company also assured shareholders that its more established businesses continue to grow steadily.

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