Advanced Micro Devices Inc. (NASDAQ:AMD) CEO Lisa Su has projected explosive growth in AI chip demand while warning that the U.S. must rapidly expand its manufacturing capacity to stay ahead in the global AI arms race.

What Happened: Speaking at an AI policy summit hosted by the Hill & Valley Forum and the “All-In” podcast on Wednesday, Su said AI chip demand could soar to more than $500 billion within a couple of years, driven by surging infrastructure needs from companies like Elon Musk’s xAI and Sam Altman’s OpenAI.

“We’re imagining that just the accelerator market—so the chips for these AI large computing systems—will be like over $500 billion in a couple of years,” Su said, citing the need for rapid scaling in both chip design and manufacturing.

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She stressed that meeting this demand would require scaling “the entire ecosystem,” not just silicon production. “The U.S. is going to be a huge piece of it,” she added, calling the Donald Trump administration’s AI Action Plan “a really excellent blueprint” for supporting growth.

Su also predicted a “Cambrian explosion” of chip diversity, saying AI’s spread across science, manufacturing, personal devices, and more will require various custom-designed chips beyond just GPUs.

“I am a believer in there will be diversity of chips,” she said.

Why It’s Important: On Wednesday, Trump unveiled a trio of executive orders as part of his “AI Action Plan,” aiming to strengthen U.S. leadership in artificial intelligence.

The orders seek to fast-track data center permitting, launch an American AI Exports Program to promote U.S. AI technology globally, and ban the use of ideologically biased AI—such as systems promoting diversity, equity, and inclusion (DEI)—in federal agencies.

Trump’s push to reshore manufacturing has prompted major companies to revamp their strategies and boost investments in the U.S.

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Earlier this year, Apple Inc. (NASDAQ:AAPL) announced a $500 billion investment to expand domestic manufacturing, while Nvidia Corporation (NASDAQ:NVDA) plans to produce AI servers worth up to $500 billion in the country.