Lisa Su has seen the future and she wants to tell you all about it.
The chairwoman and CEO of Advanced Micro Devices (AMD) took the stage at the chipmaker’s “Advancing AI” developers conference to give the attendees an idea of what’s next.
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“At AMD, we’re really focused on pushing the boundaries of high performance and adaptive computing to help solve some of the world’s most important challenges,” Su said during her keynote address. “Frankly, computing has never been more important in the world.
“I’m always incredibly proud to say that billions of people use AMD technology every day, whether you’re talking about services like Microsoft Office 365 or Facebook or Zoom or Netflix or Uber or Salesforce or SAP and many more running on AMD infrastructure.”
Su said her company’s latest AI processors can challenge Nvidia’s (NVDA) chips in a market she now expects to soar past $500 billion in the next three years, according to Bloomberg.
The new installments in AMD’s MI350 chip series are faster than Nvidia’s counterparts and represent major gains over earlier versions, Su said at a company event Thursday in San Jose, Calif.
AMD CEO Lisa Su says her company is pushing technological boundaries.
AMD going toe-to-toe with rival
The MI355 chips, which started shipping earlier this month, are 35 times faster than predecessors, she said.
Though AMD remains a distant second to Nvidia in AI accelerators — the chips that help develop and run artificial intelligence tools — it aims to catch up with these new products.
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The stakes are higher than ever: Su previously predicted $500 billion in market revenue by 2028, but she now sees it topping that number.
“People used to think that $500 billion was very large number,” she said in a briefing following her presentation. “Now it seems well within grasp.”
In February, AMD’s forecast for its data center business reflected slower growth than some analysts predicted. AMD says the new update to its MI range will restore momentum and prove it can go toe to toe with a much bigger rival.
AMD said that the MI355 outperforms Nvidia’s B200 and GB200 products when it comes to running AI software and equals or exceeds them when creating the code. Purchasers will pay significantly less than they would versus Nvidia, AMD said.
Nvidia did not immediately respond to a request for comment.
AMD, like Nvidia, is restricted from shipping its most powerful components to China under U.S. trade curbs. The company is lobbying hard to try to get the Trump administration to allow them to freely offer AI components to other countries.
AMD shares are down 4.1% this year and off nearly 28% from a year ago.
Analyst encouraged by AMD’s AI progress
Several investment firms issued research reports following AMD’s “Advancing AI” event, including Evercore ISI analyst Mark Lipacis, who raised his price target on the company to $144 from $126 and affirmed an outperform rating on the shares.
The AI event indicated that AMD is making progress on the ROCm software stack as well as in penetrating hyperscalers’ internal inferencing workloads, the analyst tells investors. The hyperscalers are the major providers of cloud infrastructure and services.
The AMD Instinct customer list expanded from Meta Platforms (META) , Oracle (ORCL) and Microsoft (MSFT) to OpenAI, xAI, Cohere, RedHat IBM’s (IBM) software subsidiary, and Humain, said Lipacis.
He says that increased visibility into AMD’s data-center graphics-processing units warrants a higher price-to-earnings multiple. Yahoo Finance calculates the forward p/e at just under 30 for AMD and under 34 for Nvidia.
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Roth Capital analyst Suji Desilva raised the firm’s price target on AMD to $150 from $125 following AMD’s AI event and affirmed a buy rating on the shares.
The analyst said he was encouraged by AMD’s artificial intelligence portfolio progress across processors, AI GPUs, networking, software and rack systems.
Desilva said he expected faster 2026 growth with the ramp of the MI350 accelerator-based Helios rack solution.
AMD sees the addressable market growing faster than previously expected, with AI inferencing and agentic AI trending as growth drivers on top of “significant” AI training investment to date, the analyst tells investors in a research note.
Citi analyst Christopher Danely maintained a neutral rating on AMD with a $120 price target after the “Advancing AI” event and the launch of its latest artificial intelligence chip, the MI355X.
He noted that AMD raised the AI total addressable market and announced a new customer, xAI, but it did not provide a revenue forecast for its AI business, which would benefit the stock.
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