Advanced Micro Devices Inc.
Speaking during the chipmaker's second-quarter earnings call, Su said AMD now sees a larger opportunity across AI accelerators, server CPUs and the broader high-performance computing market.
She also indicated analysts may be underestimating the company's data center AI business as deployments ramp over the coming years.
Su said AMD's outlook for the AI infrastructure market has changed since its Financial Analyst Day last November.
"The overall data center market opportunity is expanding far more rapidly than we projected just six months ago," Su said.
AMD reported second-quarter revenue of $11.54 billion, above analyst estimates of $11.28 billion, while adjusted earnings of $1.66 per share topped expectations of $1.61 per share.
$1.4 Trillion Market by 2030
Su responded to an analyst's estimate for AMD's 2027 data center AI business by saying, "I think what you're hearing from us is that your data center AI number is probably too low."
She said AMD now expects the data center AI accelerator market to grow more than 45% annually to approximately $1.4 trillion by 2030, while the server CPU market is expected to grow more than 50% annually to approximately $220 billion by 2030.
AMD Lifts Long-Term Growth Expectations
Alongside the higher market forecasts, Su said AMD now expects to outperform the long-term targets it outlined last year.
"As a result, we are tracking materially ahead of the long-term financial model we shared at our Financial Analyst Day last November," Su said.
"We now see the overall market for high performance and AI computing growing approximately 40% annually over the next several years, approaching $2 trillion by 2030, and we expect to grow well above the market," Su added.
Despite the stronger long-term commentary, AMD shares fell after the earnings release. Futurum Group CEO Daniel Newman noted that while AMD's earnings were solid, the market had expected a more optimistic forecast driven by Helios, the company's upcoming rack-scale AI platform.
Price action: AMD shares closed Tuesday up 7% at $518.58 and fell 8.69% to $474.50 in pre-market trading on Wednesday, according to Benzinga Pro.
Benzinga Edge Rankings place AMD in the 98th percentile for Momentum. While the stock is currently trending lower in the short term, its medium- and long-term price trends remain positive.
