AMD Sets Ambitious AI Growth Targets, Expects $100 Billion Data Center Revenue by 2030

AMD expects profit to triple by 2030, data center chip market to grow to $1 trillion

NEW YORK, Nov 11 (Reuters) - Advanced Micro Devices (AMD.O), opens new tab said on Tuesday that it expected annual data center chip revenue of $100 billion within the next five years, and its earnings to more than triple. The Santa Clara, California-based chip designer's shares were up 4% in choppy post-market trading, after closing down 2.7% at $237.52. The stock has risen 16% since October 6, when the company signed a lucrative multiyear deal with OpenAI that would bring in tens of billions of dollars in annual revenue. While the deal is unlikely to dent Nvidia's (NVDA.O), opens new tab dominance in AI chipmaking, it is seen as a big vote of confidence in AMD's chips, and the company's bullish financial projections on Tuesday should help assuage investor concern over AMD's ability to claw away business. AMD expects the market for the company's data center chips to grow to $1 trillion by 2030, CEO Lisa Su said at its analyst day - its first such event in three years - in New York. Artificial intelligence will drive much of the growth to the trillion-dollar figure. That market includes AMD's plain processor and networking chips, along with its specialized AI chips, Su said. "It's an exciting market," Su said. "There's no question, data center is the largest growth opportunity out there, and one that AMD is very, very well positioned for." In the next three to five years, AMD expects 35% growth across its entire business each year and 60% in its data center business, finance chief Jean Hu said at the analyst day. The company also expects earnings to rise to $20 a share in the same three-to-five-year period. LSEG estimates peg AMD's 2025 profit at $2.68 per share. Jensen Huang, CEO of AMD archrival Nvidia (NVDA.O), opens new tab, has said the broader AI infrastructure market will grow to $3 trillion to $4 trillion by 2030. MORE SMALL M&A EXPECTED AMD's next-generation MI400 series of AI chips is set to launch in 2026 and include several variants designed for scientific applications and for generative AI. Along with the MI400 chips, AMD is also planning to launch a complete server rack, similar to a product Nvidia sells called the GB200 NVL72. In her opening remarks Su highlighted the company's recent AI-related acquisitions, including the server builder ZT Systems and a slew of smaller software companies. AMD has built "an M&A machine," Su said. In recent months, AMD has acquired a batch of startups that focus on building software needed to run AI applications. On Monday, AMD said it bought MK1. The plan is to ensure AMD has access to the appropriate software and the people it needs to build its AI capabilities, Chief Strategy Officer Mat Hein told Reuters in an interview. "We'll continue to do AI software tuck-ins," said Hein. The chip designer forecast fourth-quarter revenue that topped Wall Street estimates. Demand for AI chips gave AMD executives a reason for optimism about the remainder of the year. The company's data center CPU business has also benefitted from the surge in AI-related spending. Reporting by Max A. Cherney in New York, Stephen Nellis in San Francisco and Juby Babu in Mexico City; Editing by Sayantani Ghosh and Matthew Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Max A. Cherney Thomson Reuters Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron's magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.

AMD shares climb as investors cheer long-term growth targets

With the bullish targets, AMD is looking to challenge Nvidia in AI computing through its next-generation MI400 chips and the Helios rack system due in 2026. AMD shares rose nearly 5% in premarket trading on Wednesday, a day after it laid out ambitious plans to reach $100 billion in annual data center revenue in five years by taking a bigger slice of the AI market from Nvidia. CEO Lisa Su said on Tuesday the market for the company's data center chips is expected to grow to $1 trillion by 2030, betting on AI-driven growth and a deeper software push. With the bullish targets, AMD is looking to challenge Nvidia in AI computing through its next-generation MI400 chips and the Helios rack system due in 2026. Nvidia, however, holds a commanding lead in the AI chip market, with far greater market share and ecosystem dominance, making AMD's challenge an uphill battle. Nvidia's shares were up about 1.5% in premarket trading. "AMD's success will come from being better than NVIDIA on whatever metrics matter most to the customers," Morgan Stanley analysts said. "Those parameters may change over time, as bottlenecks such as space, power and component availability all plays a part, but generally we see this as a "winner takes most" market, where the best ROI just wins." In the next three to five years, AMD expects 35% growth in its entire business each year and 60% in its data center business, finance chief Jean Hu said at the analyst day - its first such event in three years - held in New York. The company also expects earnings to rise to $20 a share in the same three to five years. LSEG estimates peg AMD's 2025 profit at $2.68 per share. While analysts largely welcomed the stellar growth targets, some warned about execution risks and concerns around sustainability of AI infrastructure spending and supply chain constraints. AMD shares have gained about 97% this year and are up 16% since October 6, when the company signed a deal with OpenAI.

AMD 'Money Slides' Impressive, But Analysts See Limited Upside For Stock As Market 'Already Pricing' In The Numbers - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)

Prominent analysts are weighing in on Advanced Micro Devices Inc.'s (NASDAQ:AMD) analyst day on Tuesday, during which the company made bold projections regarding its near-term future and that of the broader AI chip and data center industry. The Markets Are Already 'Pricing This In' Analyst Patrick Moorhead of Moor Insights & Strategy called attention to what he described as AMD's "money slides," pointing to an "aggressive long-term financial model," on Tuesday, in a post on X. According to Moorhead, the most significant figure showcased by the company during the event was its earnings target of $20 per share by 2030, which marks a 534% jump from its 2025 projected earnings per share of $3.14. "It's at the very top of even the most bullish analyst projections." See Also: AMD CEO Lisa Su Expects OpenAI Partnership To Generate Over $100 Billion In Revenue And 'Significantly Accelerate' AI Business He added that getting there "requires AMD to deliver on everything," from securing double-digit GPU market share and hitting $55 billion to $65 billion in annual GPU sales to successfully executing on its MI450 and Helios accelerators expected in late 2026. Moorhead also said that with the stock now trading at 60 times its forward earnings, "the market was already pricing this in," meaning there was limited upside for the stock, despite these bold new targets. Well Above The 'Most Bullish' Wall Street Estimates The Chief Market Strategist at Futurum Equities, Shay Boloor, said that the company's earnings forecast was "well above even the most bullish Wall Street estimates." Earlier this week, Bank of America analysts had forecasted an earnings per share of $18 by 2030, which was more than five times its forecasted EPS for 2025, but the figure still fell short of the company's own estimates at $20 per share, driven by strong AI demand and meaningful margin expansion. Boloor highlighted several other assumptions that were "baked into" reaching this target, such as the 35% in compounded annual growth rate, gross margins at 57%, operating margins at 35% and free cash flow margins at 25%. All this, alongside a double-digit market share in the global GPU industry, and $60 billion in annual revenue coming just from data centers. Sector Models Are Too Reliant On Hyperscaler Capex Fund manager Rihard Jarc struck a more cautious tone, warning that much of the modeling for the semiconductor sector, comprising companies such as AMD and NVIDIA Corp. (NASDAQ:NVDA), was reliant on the capex projections and letters of intent signed by the hyperscalers. Jarc is concerned that there isn't sufficient attention being given to "the revenue and profit side of the end-customers who are paying these cloud AI workload bills." He warned investors that if these multi-billion-dollar AI buildout commitments get extended or slowed, "valuations will reset to meet that new real trajectory." AMD Shares Soar After Hours Shares of AMD were down 2.65% on Tuesday, closing at $237.52, but are up 6.06% overnight, following the company's Financial Analyst Day event in the evening. The stock scores high on Momentum, Growth and Quality in Benzinga's Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors. Read More: AMD CEO Says AI Chip Market Is 'Larger Opportunity' Than $500 Billion Photo: Piotr Swat / Shutterstock AMDAdvanced Micro Devices Inc$248.872.00%OverviewNVDANVIDIA Corp$194.00-2.54%Market News and Data brought to you by Benzinga APIs

AMD's event highlighting AI-driven growth keeps analysts bullish

Analysts were positive and kept their bullish views on Advanced Micro Devices (AMD) after the company's Analyst Day on Tuesday, where the chipmaker provided financial targets and reiterated the theme that AI spending is not likely to slow down anytime AMD's AI accelerator segment is expected to grow by 60%, becoming the single largest driver of higher revenue expectations versus consensus estimates. Analysts see AMD's execution on the Helios/MI400 platform as a key question, critical to delivering projected growth rates. Sustained strong compute TAM growth could stress supply of commodities like memory and HDDs, leading to a prolonged period of favorable fundamentals for component suppliers.

AMD Stock Jumps After Chipmaker Sets Ambitious Growth Targets Citing 'Accelerating' AI Momentum - Advanced Micro Devices (NASDAQ:AMD)

Advanced Micro Devices Inc (NASDAQ:AMD) shares are getting a lift in after-hours Tuesday following the company's analyst day. The chipmaker provided new long-term growth targets at the event. AMD is trading at elevated levels. View the charts here. What To Know: AMD held its first financial analyst day in three years on Tuesday, highlighting a broad portfolio of hardware, software and solutions to power high-performance and AI compute. AMD shares are popping in extended trading after the company said it expects a greater than 35% revenue compound annual growth rate over the next three to five years. The chipmaker also guided for non-GAAP operating margins above 35%, as well as adjusted earnings per share of more than $20 on an annual basis. AMD said the growth will be led by its AI data center business, which is expected to grow at a compound annual rate of more than 80%. The company also noted that it expects to achieve more than 50% server CPU revenue market share over the next three to five years, with gross margins ranging from 55% to 58%, per Benzinga Pro. "AMD is entering a new era of growth fueled by our leadership technology roadmaps and accelerating AI momentum," said Lisa Su, chair and CEO of AMD. "With the broadest portfolio of products and our deepening strategic partnerships, AMD is uniquely positioned to lead the next generation of high-performance and AI computing. We see a tremendous opportunity ahead to deliver sustainable, industry-leading growth. We have never been better positioned." AMD said its Instinct MI350 series GPUs are ramping faster than any product in the company's history. The company's MI450 Series GPUs are expected in the third quarter of 2026, with a planned MI500 series anticipated to launch in 2027. AMD Price Action: AMD shares closed Tuesday down 2.65% at $237.52. The stock was up 3.54% in after-hours at the time of publication, according to Benzinga Pro. Read Next: Nvidia Now Larger Than 6 Out Of 11 US Sectors -- Tom Lee Says It's 'Cheaper Than Costco:' AI Stocks Still In 'Really Good Shape' Photo: Shutterstock AMDAdvanced Micro Devices Inc$246.380.98%OverviewMarket News and Data brought to you by Benzinga APIs

AMD Targets 35%+ Revenue Growth, Eyeing $1 Trillion AI Chip Market by 2030 | Investing.com UK

Advanced Micro Devices (NASDAQ:AMD) saw its stock jump over 5% in premarket trading on November 12, 2025, reaching $250.04 at 6:27 AM EST, after the company unveiled ambitious long-term growth targets at its Financial Analyst Day. The semiconductor giant predicted annual revenue growth averaging more than 35% over the next three to five years, driven primarily by explosive demand for its data center and AI products. CEO Lisa Su declared AMD is "entering a new era of growth" as the company positions itself to capture a significant share of what it projects will be a $1 trillion AI chip market by 2030. AMD's Financial Analyst Day presentation revealed the company expects its data center business to achieve a greater than 60% revenue compound annual growth rate (CAGR) over the next three to five years. More impressively, the company projects its AI data center revenue will surge at more than 80% CAGR during this period, powered by strong customer momentum including deployments with OpenAI and Oracle Cloud Infrastructure. The company's AMD Instinct MI350 Series GPUs represent the fastest ramping product in company history, with next-generation "Helios" systems featuring MI450 Series GPUs expected to deliver rack-scale performance leadership beginning in Q3 2026. At the corporate level, AMD outlined ambitious financial targets including non-GAAP operating margins exceeding 35% and non-GAAP earnings per share surpassing $20. The company also set a goal of capturing more than 50% server CPU revenue market share, up from its current position, as it continues taking share from rival Intel Corporation. AMD's stock has already gained approximately 97% year-to-date as of the market close on November 11, significantly outperforming the S&P 500's 16% gain, reflecting strong investor confidence in the company's AI strategy. Trading at $237.52 at the November 11 close (down 2.65% for that session), AMD currently commands a market capitalization of $386.69 billion with a trailing P/E ratio of 124.36. The stock's 52-week range spans from $76.48 to $267.08, and analysts maintain an average price target of $273.43, suggesting potential upside from current levels. The company reported Q3 FY25 revenue of $9.25 billion with earnings of $1.97 billion, beating estimates with actual EPS of $1.20 versus the $1.17 estimate. While AMD continues to trail Nvidia Corporation in the AI accelerator market, where Nvidia has generated tens of billions in sales, AMD's diversified portfolio across data center CPUs, AI GPUs, embedded processors, and client computing positions it uniquely for sustained growth. The company emphasized its leadership across adaptive computing, where it expects to exceed 70% revenue market share, and in client processors, where it aims to surpass 40% market share. With over $50 billion in design wins secured since 2022 and ROCm software downloads increasing 10x year-over-year, AMD appears well-positioned to capitalize on the expanding AI infrastructure buildout despite concerns about the sustainability of elevated AI spending levels. *** Looking to start your trading day ahead of the curve?

AMD shares climb as investors cheer long-term growth targets

(Reuters) -AMD shares rose nearly 5% in premarket trading on Wednesday, a day after it laid out ambitious plans to reach $100 billion in annual data center revenue in five years by taking a bigger slice of the AI market from Nvidia. CEO Lisa Su said on Tuesday the market for the company's data center chips is expected to grow to $1 trillion by 2030, betting on AI-driven growth and a deeper software push. With the bullish targets, AMD is looking to challenge Nvidia in AI computing through its next-generation MI400 chips and the Helios rack system due in 2026. Nvidia, however, holds a commanding lead in the AI chip market, with far greater market share and ecosystem dominance, making AMD's challenge an uphill battle. Nvidia's shares were up about 1.5% in premarket trading. "AMD's success will come from being better than NVIDIA on whatever metrics matter most to the customers," Morgan Stanley analysts said. "Those parameters may change over time, as bottlenecks such as space, power and component availability all plays a part, but generally we see this as a "winner takes most" market, where the best ROI just wins." In the next three to five years, AMD expects 35% growth in its entire business each year and 60% in its data center business, finance chief Jean Hu said at the analyst day - its first such event in three years - held in New York. The company also expects earnings to rise to $20 a share in the same three to five years. LSEG estimates peg AMD's 2025 profit at $2.68 per share. While analysts largely welcomed the stellar growth targets, some warned about execution risks and concerns around sustainability of AI infrastructure spending and supply chain constraints. AMD shares have gained about 97% this year and are up 16% since October 6, when the company signed a deal with OpenAI. (Reporting by Rashika Singh and Siddarth S in Bengaluru)