Key Facts on AMD’s AI Chips and Revenue Growth
Advanced Micro Devices (AMD) will begin shipping its new MI450 AI chips for data centers in the second half of 2023. These chips can reportedly deliver 36 times more performance than previous models and are expected to be deployed by major clients like Meta Platforms and OpenAI, who plan to utilize a combined 6 gigawatts of computing capacity. This could translate into tens of billions of dollars in deals as each gigawatt requires between 500,000 to 1 million chips, depending on performance.
Despite geopolitical tensions and a 5% drop in S&P 500 during March 2023, AMD’s stock rose by 2.5%. The company generated a record $16.6 billion in data center revenue in 2025, accounting for nearly half of its total revenue of $34.6 billion. CEO Lisa Su forecasts a potential 60% annual growth in this sector starting in 2026, suggesting data center revenue could reach tens of billions over the next few years if commitments from clients are fulfilled.
AMD’s data center business not only competes strongly against Nvidia but also enhances investor confidence amid market volatility. Wall Street anticipates earnings growth of 59% in 2026, which could boost AMD’s stock from its current P/E ratio of 48.7 to more favorable figures in the coming years.
