AMD Gears Up For Breakout Year In Artificial Intelligence GPUs Business: Analyst

Fresh off a series of investor meetings with Advanced Micro Devices Inc's AMD CEO Lisa Su, JPMorgan analyst Harlan Sur says the company is increasingly confident about delivering over 20% growth in 2025.

Sur’s expectations stem from a mix of AI acceleration, CPU dominance, and strategic partnerships.

These insights stem from the analyst’s discussions with AMD leadership at recent investor meetings.

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AI GPUs: The Next Big Thing

Su's AI ambitions are no secret, and AMD is gearing up for a breakout year in its AI GPU business. The company expects over 60% growth in AI GPUs this year alone. That’s thanks to a massive ramp in its MI350 accelerator platform.

Oracle Corp ORCL just dropped a multi-billion-dollar order for 30,000 MI355X GPUs — an early sign of demand that AMD believes will only intensify.

With Microsoft Corp MSFT, Meta Platforms Inc META, and other cloud giants in line to transition to the MI350 series, AMD's AI roadmap looks stronger than ever.

But the real game-changer? The MI400 platform. Coming in 2026, it aims to compete with Nvidia Corp's NVDA Rubin-class compute, targeting massive AI clusters exceeding 100,000 GPUs.

AMD isn't just trying to keep up—it's aiming to redefine AI compute with a more flexible, scalable architecture.

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CPUs: More Market Share, More Power

AI isn't AMD's only growth engine. Server CPUs remain a core strength, with Su & Co. confident in crossing 50% market share in the long term. AMD closed 2024 with an estimated 37-38% share, up from 32-33% the year before, and expects another 500-600 basis points of gains this year.

AMD’s direct-sales approach is also eating into Intel's long-standing enterprise dominance.

Next-gen AI workloads, including agentic AI (which demands more CPU compute alongside GPUs), should only accelerate this momentum.

Meanwhile, AMD's notebook and desktop CPUs continue to gain ground. Market share has been climbing for four consecutive quarters, and a fresh partnership with Dell Technologies Inc DELL to integrate Ryzen AI PRO CPUs into commercial PCs could unlock a new wave of growth.

With a diversified compute portfolio spanning AI GPUs, server CPUs, gaming, and embedded markets, AMD is positioning itself for sustained growth in 2025 and beyond.

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