AMD shares climbed 3% Wednesday after CFO Jean Hu told a Citi conference the AI chip market could reach $3 trillion by 2030, up from her earlier $2 trillion framing. Intel rose a more modest 1% as Hu also reaffirmed TSMC as AMD's primary wafer supplier, dismissing speculation about Intel Foundry. Analysts have raised AMD's 2027 earnings estimates, though the stock's valuation remains a sticking point.
Advanced Micro Devices stock rose 3% to $521.59 in Wednesday morning trading, extending a rally that began after Hu addressed the Citi Global TMT Conference on Tuesday. The stock was up 144.4% year to date heading into the session, and shares have now moved past their 50-day moving average of $499.27. Intel stock, by contrast, edged up only 1% to $105.76, a muted reaction that shows the rally is concentrated in AMD rather than the broader chip sector.
CFO lifts the AI chip market ceiling
Speaking at the conference, Hu said the total addressable market for AI chips could reach $2 trillion to $3 trillion by 2030, raising the top end of her prior $2 trillion framing. That builds on CEO Lisa Su's August comment that the data center AI accelerator market alone could reach $1.4 trillion by 2030, according to AMD. Hu said AMD's data center business is expected to more than double next year, with supply tight across wafers, packaging, and high-bandwidth memory: "we're going to continue to see strong demand for AMD's product".
That demand picture lines up with AMD's Data Center revenue, which jumped 107% year over year to $6.72 billion in the second quarter of 2026, or 58% of total sales. Meta is one of AMD's anchor AI customers alongside OpenAI and Anthropic, whose own August agreement covers up to 2 gigawatts of MI450 Series GPUs in AMD's Helios racks.
TSMC stays the primary foundry
Asked whether AMD would shift wafer supply to Intel Foundry, Hu said AMD would continue to view TSMC as its primary supplier on the wafer side. That statement closes off market speculation about an Intel Foundry allocation, even as Intel Foundry posted $5.76 billion in second-quarter 2026 revenue, up 31% year over year, alongside a $2.1 billion operating loss. Nvidia remains the incumbent AI accelerator competitor against which AMD's expanded forecast gets measured; its most recent quarterly revenue reached $96.22 billion.
Analysts raise estimates, but valuation debate persists
The consensus fiscal 2027 EPS estimate has climbed to $15.4507 from $12.9595 ninety days ago, with 33 upward revisions against 3 downward revisions in the trailing 30 days. Even so, AMD trades at a trailing price-to-earnings ratio of 129.02x against an analyst target price of $615.38, which is why the skeptical case points at valuation. The next scheduled catalyst is AMD's third-quarter 2026 report, where management has guided to revenue around $13 billion, up 41% year over year.
Source: 24/7 Wall St.
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