Advanced Micro Devices Inc., Nvidia Corp.’s nearest rival in AI chips, predicted accelerating sales growth over the next five years, driven by strong demand for its data centre products.

Annual revenue growth will average more than 35% over the next three to five years, Chief Executive Officer Lisa Su said Tuesday at a company event in New York. AMD’s AI data centre revenue will increase by an average of 80% over the same period, she said. The stock rallied in extended trading after executives also said adjusted profit will reach more than $20 a share and operating margin will exceed 35% in that time frame.

AMD updated investors on its long-term outlook amid increasing concern that the massive spending on new computer systems for artificial intelligence work can’t continue at the current

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