Advanced Micro Devices (AMD) CEO Lisa Su announced on Tuesday, October 6, 2026, that the company plans to substantially increase its chip supply in 2027. The expansion is aimed at meeting rising demand for artificial intelligence (AI) infrastructure, which Su described as being in the early stages of a multi-year adoption cycle.
The announcement follows a period of growth for the U.S.-based chipmaker, whose market value recently reached $1 trillion. AMD has been working to expand its AI graphics processor (GPU) business. During a visit to Taipei, Su met with partners including Foxconn and is scheduled to meet with Taiwan Semiconductor Manufacturing Company (TSMC) to discuss ramping up production of central processing units (CPUs) and GPUs.
Financial results for the second quarter of 2026 showed record revenue of $11.54 billion, a 50% increase year-over-year. The company's data center segment saw revenue rise 107% to $6.7 billion. During an August earnings call, the company projected that its data center revenue will more than double in 2027. Despite these figures, AMD shares fell more than 8% in after-hours trading following the August earnings report, as some investors felt growth projections did not meet market expectations.
The scale of the market shift is reflected in AMD’s updated projections, which now estimate the server CPU market will reach $220 billion by 2030, growing at an annual rate of over 50%. This is a revision from the 18% annual growth projected by the company in late 2025. For the third quarter of 2026, AMD expects revenue of approximately $13 billion. The company has also begun production of its sixth-generation EPYC processor, codenamed Venice, which uses 2-nanometer process technology, to address a tight supply chain that has struggled to keep pace with demand throughout 2026.
Beyond hardware production, the company is engaging with industry safety standards. Su referenced a recent AI summit where technology executives agreed to work with independent auditors to verify that AI systems function as designed. This coordination comes as companies navigate the technical challenges of superintelligence. Following the meetings in Taiwan, Su traveled to South Korea to discuss memory chip supplies with companies including Samsung and SK Hynix, while TSMC continues to evaluate a potential manufacturing investment in Texas to provide the advanced wafer capacity AMD says it requires for the next three to five years.