ISTANBUL

Shares of chipmaker AMD surged more than 8% Wednesday after its CEO said increased spending in the artificial intelligence (AI) sector is "the right gamble."

“I don’t think it’s a big gamble,” Lisa Su told CNBC about AI spending. “I think it’s the right gamble.”

Su said that as technology hits an "inflection point" and companies can see the return on their investment, many of AMD's hyperscaler clients have increased their spending in the past 12 months.

“The AI ecosystem is in a place where people are making bets, and people are deciding what bets they want to make, and ... which part of the stack you want to make the bets,” she added.

Su's comments followed her remarks Tuesday that she expects around 35% annual sales growth in the next three to five years due to “insatiable” AI chip demand.

She said Tuesday that the US-based chip firm’s AI data center business, which is projected to grow at a rate of roughly 80% annually over the same timeframe and reach tens of billions of dollars in annual revenue by 2027, would account for a large portion of AMD’s expected revenue growth.

Her remarks came as major tech companies announced more than $380 billion in spending on AI in their financial statements. But there have been concerns about an "AI bubble" and overvaluation of tech stocks in recent weeks.

On Tuesday, Japanese tech company SoftBank announced that it had sold its stake in Nvidia for $5.83 billion in October to fund its AI initiatives.

Tech firms have suffered major losses in recent days due to overvaluation concerns.