AMD CEO Lisa Su Sees AI Demand Outpacing Supply, Plans Major Capacity Boost in 2027
AMD CEO Lisa Su said in an interview on Tuesday (Oct. 6) that AI demand will remain "very strong" for years to come, despite challenges including AI safety concerns facing the chip industry. Even as AMD keeps raising output, demand is still outstripping supply.
"We increased supply and capacity in 2026, but demand is, I can tell you, even higher than our supply. We will increase supply significantly in 2027, and we definitely need more capacity," Su said.
She called on leading AI companies to work together to ensure the technology is developed safely. Su also described the Trump administration's newly created "Super Intelligence Force" (SIF) task force as an important step in advancing those efforts, adding that the goal is to "make sure we have very powerful AI and very safe AI."
AMD's upbeat outlook adds to the broader bullish sentiment in the AI industry. Memory chip maker Micron recently gave a strong earnings outlook, and server assembler Hon Hai Precision reported quarterly sales that beat expectations. AMD's shares climbed about 30% in September 2026, pushing its market value above $1 trillion, helped by Meta's launch of its new AI agent Muse.
AMD competes with Intel in CPUs and with Nvidia in GPUs. Last week, the company announced the acquisition of AI startup World Labs for $8.2 billion to strengthen its technology and potentially help it offer customers multiple models. Still, some investors are increasingly concerned about overcapacity, rising debt levels and regulatory headwinds.
