AMD Shares Surge as Su Backs AI Spending Boom
Shares of Advanced Micro Devices (AMD) surged 10% Wednesday after CEO Lisa Su dismissed concerns about excessive AI infrastructure spending, describing it as the “right gamble” for technology companies.
Speaking with CNBC’s Squawk Box, Su said the rapid expansion of AI infrastructure will unlock long-term productivity and innovation.
“I don’t think it’s a big gamble,” she said. “I think it’s the right gamble.”
Her comments reinforced confidence that AMD’s growth trajectory remains intact as hyperscalers — from cloud giants to chip customers — accelerate spending on AI computing capacity.
35% Annual Growth Target on ‘Insatiable’ AI Demand
Su told analysts that AMD expects to grow revenues by roughly 35% per year over the next three to five years, citing “insatiable demand” for data center AI chips.
She added that AMD aims to secure a double-digit market share in the data center AI chip segment within that timeframe — a bold target given Nvidia’s current dominance.
Over the past year, Big Tech firms have announced more than $380 billion in AI-related capital expenditures, spanning cloud infrastructure, semiconductor manufacturing, and model training capacity.
“Many of our customers are spending because they can now see real returns on those investments,” Su said, noting that AI adoption has reached an inflection point where infrastructure spending is directly translating into revenue growth.
Market Weighs AI Valuations and Skepticism
While investor sentiment remains broadly optimistic, skepticism has grown over whether AI valuations have run too far.
Short-seller Michael Burry, known for The Big Short, recently disclosed bearish positions against Palantir and Nvidia, alleging accounting manipulation among hyperscalers by extending chip depreciation schedules.
Meanwhile, SoftBank’s $5.8 billion Nvidia share sale — announced Tuesday — has reignited debate over whether major investors are beginning to rotate capital away from overvalued AI stocks.
However, sources close to SoftBank told CNBC the move was not tied to valuation fears but rather to funding its $22.5 billion OpenAI investment.
Su brushed off the noise, saying she respects SoftBank’s strategic focus. “The AI ecosystem is in a place where people are making bets,” she said. “It’s about deciding which part of the stack you want to own.”
WSA Take
AMD’s bullish long-term forecast and Su’s conviction in the AI cycle underscore a key theme for investors — AI infrastructure is still in its early innings.
While some fear the sector’s valuations are overheated, AMD’s execution across chips, servers, and accelerator hardware suggests the company could be among the few capable of challenging Nvidia’s dominance in AI computing.
Still, execution risk remains. Growth at this scale will require both steady data center demand and efficient supply chain expansion, especially as competition intensifies.
Read our recent coverage on Anthropic Commitment of $50B to U.S. AI Data Centers.
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