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AMD CEO Lisa Su Says AI Chip Demand Outstrips Supply, Plans Substantial 2027 Production Increase

By Market Flux···1 min read
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AMD CEO Lisa Su said Tuesday that customer demand for the company's AI chips is running ahead of what AMD can currently produce, and announced plans to substantially increase chip supply in 2027. Speaking at an event in Taipei, Su said AMD has already boosted supply this year but could use more, and credited TSMC for bringing additional manufacturing capacity online. She characterized strong demand for compute as a multiyear trend she expects to continue for the next several years.

Memory emerged as a separate bottleneck in Su's remarks. She described memory as broadly supply constrained across the industry and said AMD is coordinating directly with memory suppliers and customers to ensure that new capacity comes online simultaneously rather than in a piecemeal fashion. Su emphasized that all capacity must be activated together to avoid mismatches between chip availability and the memory needed to run them.

Su underscored the strategic importance of Taiwan to AMD's operations, calling the island's supply chain very critical to the global semiconductor industry and essential to AMD specifically. She said the company plans to increase its investment in Taiwan and is continuing to evaluate new packaging technologies. On AI more broadly, Su said the technology will be incredibly good for the world while acknowledging that further work on AI safety remains necessary.

AMD shares rose roughly 1.8% in premarket trading following the remarks. Citi raised its price target on AMD stock, with analysts citing the CPU market potentially reaching 300 billion dollars by 2030 and growing momentum around personal AI agents as tailwinds for the company.

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Sources

  1. FinancialjuiceTaipeiAMD’s Lisa Su: memory is generally supply constrained
  2. FirstSquawkLISA SU: AMD HAS BOOSTED SUPPLY THIS YEAR, THOUGH MORE WOULD BE WELCOME
  3. RedboxWireLISA SU: AMD HAS BOOSTED SUPPLY THIS YEAR, THOUGH MORE WOULD BE WELCOME
  4. Wallstengine$AMD CEO Lisa Su says demand is still running above supply and expects strong demand for compute to continue for the next several years, with AMD planning to “substantially increase” supply in 2027. Su said AMD has already increased supply this year but “could definitely use more,” thanked TSMC for bringing additional capacity online, and noted that memory remains broadly supply constrained. AMD is working with memory suppliers and customers to make sure capacity comes online together, while keeping its current business model unchanged. Su also called Taiwan “very critical” to AMD and said the company plans to increase its investment there, while continuing to look at new packaging technologies. Source: Reuters
  5. KalshiJUST IN: AMD CEO says customers are demanding more AI chips than they can make
  6. Crypto BriefingAMD CEO Lisa Su says AI chip demand exceeds production capacity
  7. BloombergChina’s AI Champions Raise Billions Ahead of IPOs
  8. ETMarketsAdvanced Micro Devices plans to substantially increase chip supplies in 2027 as the U.S. semiconductor maker races to keep pace with surging demand for artificial intelligence processors, Chief Executive Officer Lisa Su said on Tuesday, Reuters reported. #ETMarkets Read more here
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