GPU Junkies Flock to AMD (+10%) After Lisa Su Upgrades AI Credit Limit to “Unlimited”

Death, taxes, and Lisa Su taking out another AI loan…

Shares of AMD (+10%) are up BIGLY after CEO Lisa Su looked straight into the camera and told investors that throwing hundreds of billions at AI infrastructure isn’t reckless… it’s necessary. “I don’t think it’s a big gamble,” she said. “I think it’s the right gamble.” (Somewhere in a UFC training facility, Zuck just texted his CFO demanding they raise AI spending).

And while quotes like that usually send Michael Burry reaching for his short button (for the 93rd time this week), Su backed up the bark with some bite. AMD expects revenue to grow 35% per year over the next three to five years, powered by what she called “insatiable” demand for AI chips. Data center revenue alone is projected to jump 60% in that same period… from $16 billion in 2025 to somewhere between “holy crap” and “Nvidia who?”

According to Su, the market for AI data centers could hit $1 trillion in five years, and AMD plans to grab a “double-digit share” of that sweet silicon pie. That means locking down contracts with hyperscalers like Microsoft and Amazon, sovereign AI projects backed by governments, and AI-native firms like OpenAI and Anthropic. 

(Source: CNBC)

The company’s already on the scoreboard with a 6-gigawatt infrastructure deal with OpenAI and a 50,000-chip order from Oracle… both set to kick in by 2026. Translation: AMD’s carving out a lane in what was supposed to be Nvidia’s exclusive racetrack.

Meanwhile, CFO Jean Hu proceeded to tell investors AMD will still be swimming in profits while it scales up… expecting gross margins between 55-58% and operating margins over 35%. Translation: they’re having their cake and eating it too.

The timing of Su’s victory speech is especially funny given how loud the “AI bubble” crowd’s gotten lately. Michael Burry’s been yelling that Big Tech is “stretching depreciation schedules” to hide losses… calling it “one of the more common frauds of the modern era.” (That’s Big Short for “they’re cooking the books.”) And SoftBank just dumped its entire $6 billion Nvidia stake… not because it’s bearish on AI, but to reload for a $22 billion OpenAI investment.

Su, unfazed, essentially said everyone needs to relax. “This is a very unique moment in AI. We shouldn’t be shortsighted.” And at least right now, she has a very good point.

AMD’s also prepping its next-gen MI450 and MI500 data center chips… Su’s not-so-subtle way of saying “hey Jensen, save me a seat on that trillion-dollar moonmission.” And beyond GPUs, AMD’s gunning for 50% of the global server CPU market with its EPYC lineup, up from 40% today. 

Even its PC chip business (long considered the company’s “boring” side hustle) is expected to grow 10% annually as it continues to dunk on Intel.

Critics can say whatever they feel… but the results speak for themselves… AMD stock is up 96% year-to-date and 61% over the last 12 months. That’s better than Nvidia. A student outperforming the master type beat.

And you know Zuck’s not letting that slide. The man’s probably fuming that someone out there is spending more money than him. I’m not a betting man, but if I were, I’d put good money on tomorrow’s headline reading: “Zuck vows to spend $1 trillion on AI by 2030.”

At the time of publishing this article, Stocks.News holds positions in Amazon, Intel, and Microsoft as mentioned in the article.