AMD's Data-Center Strength -- WSJ
Dow Jones2026/08/05 11:04By Rebecca Feng
$1.4 trillion
That's how big the market for data center AI accelerators-microchips designed to process tasks like machine learning-will be by 2030, according to Advanced Micro Devices CEO Lisa Su.
During yesterday's earnings call, she said the data-center market is expanding "far more rapidly than we projected just six months ago," boosting her company's growth prospects. The server CPU market should also grow more than 50% annually to reach $220 billion in 2030, she said.
That growing demand was clear to see in AMD's results yesterday: Its data-center revenue doubled in the second quarter, and the segment now accounts for 58% of its top line.
Still, AMD's shares are down around 8% premarket after SpaceX chief Elon Musk said his company would no longer buy AMD's chips and exclusively buy from archrival Nvidia, headed by Su's distant cousin, Jensen Huang.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
August 05, 2026 07:04 ET (11:04 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Goldman Sachs: AI storage chip demand is underestimated, South Korean stock market still has 80% upside potential
Goldman Sachs Asia-Pacific Chief Equity Strategist Timothy Moe maintains a KOSPI target of 12,000 points, implying an almost 80% increase from the current level. He points out that the market is systematically underestimating the sustainability of the AI storage chip profit cycle. Capital expenditures by US tech giants may exceed $1.2 trillion next year, and the chip shortage triggered by data center expansion will further intensify in 2027. The current KOSPI is trading at only 5.3 times expected earnings, about half of its historical average.
Norwegian sovereign wealth fund may cut $80 billion US Treasury holdings; high-rated mortgage securities expected to become new favorites
Norway's sovereign wealth fund, with a scale of $2.3 trillions, has recommended reducing government bond holdings and reallocating funds towards higher-yielding fixed income assets.
Barclays names Takeo Kamai head of high-touch sales trading, Japan
Crypto prices
More
