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Advanced Micro Devices (AMD) is experiencing significant growth in its data center AI business, driven by demand for its Instinct MI350 and MI300 series GPUs. In a strategic partnership with Oracle (ORCL), AMD is launching the first AI supercluster utilizing its Helios rack design featuring Instinct MI450 GPUs on Oracle Cloud Infrastructure. This initiative highlights AMD’s commitment to expanding its data center offerings.
AMD anticipates the total addressable market for data centers to reach $1 trillion by 2030, with a compound annual growth rate (CAGR) of over 40% from an estimated $200 billion in 2025. The company estimates its data center AI revenues will grow at over 80% CAGR in the next 3-5 years, bolstered by partnerships with companies like IBM, Cohere, and OpenAI, which will begin utilizing 1 GW of AMD’s next-generation AI computing capacity in late 2026.
Despite these advancements, AMD faces stiff competition from NVIDIA (NVDA) and Broadcom (AVGO). NVIDIA’s new GPU platforms are rapidly being adopted in the AI infrastructure space, while Broadcom reported that its custom AI accelerators constituted 65% of its AI revenues for Q3 fiscal 2025. AMD’s stock has risen 53.2% over the past year, outperforming the broader tech sector’s 27.6% return.
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