AMD Chief Executive Officer Lisa Su stated on Tuesday that chip demand will remain "very high" over the coming years, even as the industry faces challenges such as AI safety concerns.

She noted that demand continues to outpace supply even as AMD ramps up production. She also called on leading AI companies to collaborate to ensure the technology does not cause harm.

Demand Far Exceeds Supply

Su reiterated a May commitment that AMD will invest more than $10 billion in Taiwan to address growing demand. She said the region is critical to AMD and the semiconductor supply chain.

AMD's optimistic stance further reinforced bullish sentiment in the AI industry, as evidenced by Micron Technology's strong outlook and Hon Hai Precision's better-than-expected quarterly sales. However, some investors are increasingly concerned about overcapacity, rising debt levels, and regulatory setbacks.

During a visit to supply chain partners including TSMC, Su said: "We've also increased our own supply and capacity in 2026, but I can say with certainty that demand is even higher than our supply. We will significantly increase supply in 2027, but we will certainly need more."

The Santa Clara, California-based chipmaker surpassed a $1 trillion market capitalization last month after Meta Platforms' new AI agent sparked enthusiasm for central processing unit (CPU) makers, as these CPUs are essential to power such applications.

AMD competes with Intel in the CPU space and is a major challenger to Nvidia in AI accelerators. AMD recently agreed to acquire AI startup World Labs for $8.2 billion to strengthen its technological capabilities and enable it to offer customers multiple models.

Calls for AI Safety Collaboration

On Tuesday, Su said AI is "extremely beneficial to the world." She does not believe AI will harm humanity as some have claimed, but urged industry collaboration to ensure this, calling the Trump administration's newly established "Super Intelligence Force" an important step in these efforts.

"There's still work to be done in terms of safety and innovation, and I think the most important thing is that we work together as an ecosystem," Su said. The goal is "to ensure we have both very powerful AI and very safe AI."