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| AMD aims to double data center revenue |
AMD plans to become a $40 billion annual chip maker in the next three years. In 2021, the company's revenue reached a record high of $16.4 billion.
AMD CEO Lisa Su revealed on the company's first financial analyst day in two years that the chip maker plans to meet its $40 billion sales target by 2025 thanks to data center chips.
AMD aims to capture $300 billion of global chip market share within three years. He estimates that $125 billion of that goal could go toward servers running chips, artificial intelligence, and networking and graphics infrastructure.
“We have seen a huge increase in the demand for the cloud and everything that happens in the data center,” Su said. We're also seeing a huge growth in AI and some sort of demand for AI workloads. We increase the overall market size when considering networking, networking, and other opportunities.
The world needs more computing power, and as tools like artificial intelligence become more popular, so does the need for silicon.
“We are still underrepresented in the market,” Su said of the data center processor market. In the first quarter of 2022, AMD captured 11.6% of the x86 data center chip market, up from 8.9% a year earlier, according to Mercury Research.
AMD showed off its data center chips, which they talked about improving performance thanks to the company's superior design.
The partnership with TSMC is part of that success, and AMD needs to work with manufacturers to develop their latest designs to ensure they can leverage the latest manufacturing technologies to maximize the performance of every piece of silicon.
Part of the company's data center and AI plan is to acquire Zylinks for $35 billion.
The future of AMD is the data center
The chip maker added billions of dollars in new sales and markets for cars, wireless technology and embedded chips used in the military and healthcare. But Zylins has also introduced technology that helps expand AMD's efforts in the data center.
AMD was previously a second-tier company to Intel. But those times seem to be gone. Gone are the days of Barcelona's disastrous launch of server chips and the turbulent times that followed its decision to leave the chip industry.
If the deal meets her expectations, it will support Sue's decades-old efforts to grow the business.
In addition to the company's grand strategy, AMD's custom chip design efforts are intriguing. Currently, the so-called Sheh Custom chips are limited to video game console chips designed for modern Xbox and PlayStation platforms.
But the company has plenty of ideas for how it could evolve into something more in the coming years. “We have been in the custom chip business for 10 years,” said Su. If you look at what we've done in the gaming hardware market, these are dedicated chips.
"We provide customized silicon into the customer's view of the market, system and software applications," she added. I think the trend towards private chips will likely continue to increase.
Google, Amazon, and Microsoft are developing specialized chips for data centers. Through these efforts, cloud companies can find a way to differentiate themselves from the competition.
AMD's custom silicon strategy is based on the ability to combine several specialized microchips into a single package.
AMD has made dozens of products this way. It plans to help customers add chips based on their technology. But company executives believe that easy customer switching won't be possible until 2025.