AMD Soars Past $750B Market Cap For First Time — CEO Lisa Su Expects CPU Market To Grow 35% Annually Over Next 5 Years

• The AMD CEO attributed the increase in CPU demand to growing adoption of AI inference and agentic AI workloads, noting that demand in the segment remains very strong.
• She added that CPU demand has far exceeded expectations from a year ago, driven by widespread capacity constraints that are being resolved quickly.
• Su said during an interview earlier this month that the AI industry is still in its early innings, noting that businesses are realizing the rewards of artificial intelligence.

Advanced Micro Devices Inc. (AMD) soared past $750 billion in market capitalization for the first time in history after the stock’s 120% rally this year so far.

According to a report by Nikkei Asia, AMD CEO Lisa Su said on Friday that she expects the central processing unit (CPU) market to grow 35% annually over the next five years, thanks to AI demand.

AMD shares were up nearly 5% in Friday’s opening trade.

AMD’s Su Confirms CPU Supplies Are Constrained

Su confirmed that CPU supply is constrained right now, since no one in the chip industry had foreseen such a surge in demand.

“For the last three or four years, the CPU market has not grown very much. It was growing at maybe 3% to 4%, and all of the focus was on GPUs (graphic processing units),” she told reporters at the Commonwealth Magazine in Taipei.

Su attributed the increase in CPU demand to growing adoption of AI inference and agentic AI workloads, noting that demand in the segment remains very strong.

“Today the overall CPU market has had significantly higher demand than any of us predicted a year ago. I think we see bottlenecks everywhere ... but they are being solved very quickly,” she added.

AMD’s Su Says We’re At Early Innings Of AI

Su said during an interview earlier this month that the AI industry is still in its early innings, noting that businesses are realizing the rewards of artificial intelligence.

She said that this has led to increased adoption of the technology and, in turn, increased demand for CPUs.

“As recently as last year, we thought the CPU total addressable market (TAM) was going to be growing at about 18-20%... now what we’re seeing is, that rate is doubling,” she added.

Su stated that the CPU market is expected to exceed $120 billion by 2030.

“From my standpoint, I think it’s really a validation of everything that we believed, but what’s happening is, the usefulness, the utility of AI has actually increased at an even faster pace than we originally thought,” Su said.

What Do Retail Traders Think About AMD?

Retail sentiment on Stocktwits around AMD trended in the ‘bearish’ territory at the time of writing.

One user believes that AMD will have an agentic CPU monopoly.

AMD stock is up 120% year-to-date and 325% over the past 12 months. The S&P 500 ETF (SPY) is up 28% over the past 12 months, while the Invesco QQQ Trust ETF (QQQ) is up 40%.

The iShares Core S&P 500 ETF (IVV) is up 28% during this period.

Also See: GameStop Seeks Shareholder Approval To More Than Double Its Authorized Shares – A Look At The Important Figures

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