AMD stock soars 10% on strong growth projections as CEO Su calls AI spending ‘the right gamble’ (www.cnbc.com)

AMD CEO Lisa Su told CNBC that continued Big Tech spending on AI infrastructure is “the right gamble,” projecting that AI-driven demand will lift company revenues about 35% annually over the next three to five years. She called demand for data‑center AI chips “insatiable,” and said AMD expects to capture a double‑digit share of the data‑center AI chip market within that timeframe. The bullish outlook and validation of hyperscaler investment sent AMD shares up roughly 10% after the comments; tech megacaps recently disclosed more than $380 billion in AI spending as they build out cloud and inference/training capacity. For the AI/ML community the announcement underscores how hyperscaler spending is reshaping the chip landscape: sustained capital deployment is accelerating innovation and opening market share opportunities beyond incumbents like Nvidia. Key implications include faster adoption cycles for high‑performance accelerators, greater competition in data‑center ASIC/GPU markets, and larger total addressable markets for companies supplying CPUs, GPUs and custom accelerators. The remarks also come amid investor debate about valuation and hardware lifecycles—short sellers have questioned depreciation practices—so AMD’s forecast both validates infrastructure bets and signals heightened scrutiny as firms scale AI hardware investments.