AMD Targets $100 Billion Data Center Revenue by 2030 as AI Demand Surges

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 CEO Lisa Su Said AI Demand Is 'Insatiable.' The Chipmaker's Stock Is Soaring

AMD said it now believes its total addressable AI market could be over $1 trillion by 2030, up from a previous target of $500 billion by 2028. Advanced Micro Devices shares are getting a boost from its outlook. The stock was up about 10% in early trading Wednesday, leading gains on the S&P 500 after the chipmaker yesterday unveiled ambitious new targets at its first analyst day. (Read our daily markets coverage here.) Chip stocks were broadly rising, too, with the SOX index of semiconductor shares up 1.5%. CEO Lisa Su on Tuesday told analysts the company is seeing "insatiable" AI demand, suggesting that its revenue growth could climb to 35% per year over the next three to five years, with gross margins of 55% to 58%. AMD (AMD) said last week its third-quarter adjusted gross margin was 54%. AMD said it now believes its total addressable AI market could be over $1 trillion by 2030, up from a previous target of $500 billion by 2028. Several Wall Street analysts said they remain bullish on the chipmaker's stock following the event, though they declined to raise their price targets amid persistent worries about an AI bubble and the possibility that AMD's upward momentum could reverse course if it pops. Citi analysts, who maintained a neutral rating for the shares, said they believe AMD's targets "will likely be maintained or exceeded until the AI bubble bursts but our conversations with investors indicate many are already there." "We believe the AI bubble will likely burst within a couple years and could result in much lower estimates," they wrote. Shares of AMD have roughly doubled in value in 2025 so far, with most of those gains coming in the past few months after a string of big AI deals, including one with ChatGPT maker OpenAI.

AMD share price jumps by over 10%. With shares up by 97% in 2025, Advanced Micro Devices stocks are debunking AI-bubble fears

To challenge Nvidia in AI, AMD is betting on its next-generation MI400 chips and the Helios rack system due in 2026. AMD share price has skyrocketed to over $262 as Advanced Micro Devices Inc stock at Nasdaq jumped by more than 10 per cent. Advanced Micro Devices was one of the strongest forces lifting the U.S. Stock Market after CEO Lisa Su said the chip-maker company is expecting better than 35 per cent of annual compounded growth in revenue over the next three to five years. She credited "accelerating AI momentum." AMD shares have gained about 97 per cent this year and are up 16 per cent since October 6, when the company signed a deal with OpenAI. AMD unveiled a bold $100 billion annual data-center revenue target, with plans to claim a larger slice of the booming artificial intelligence market dominated by Nvidia. The company was set to add over $26 billion to its market value if the premarket gains hold, a day after it laid out its three- to five-year goals such as more than tripling its earnings at its first analyst day in three years. The market for data-center chips could swell to $1 trillion by 2030, CEO Lisa Su told analysts, highlighting how the scramble for advanced AI has set off an infrastructure race and record spending by U.S. tech giants. Her prediction covers AMD's general-purpose processors, networking chips and AI accelerators, but it contrasts with Nvidia's far more bullish estimate of $3 trillion to $4 trillion in AI infrastructure spending by the end of the decade. AMD's targets are attainable, several analysts said, citing major tieups with OpenAI and Oracle that could generate tens of billions of dollars in sales and hints of ongoing talks with other top hyperscalers. To challenge Nvidia in AI, AMD is betting on its next-generation MI400 chips and the Helios rack system due in 2026. In the next three to five years, AMD expects 35 per cent growth in its entire business each year and 60 per cent in its data center business. It expects earnings to rise to $20 a share in the same period, while LSEG estimates peg its 2025 profit at $2.68 per share. Bernstein analyst Stacy Rasgon said the targets appear "somewhat aggressive/aspirational" as the outcome would hinge on AMD's ability to use Helios to shift from a marginal AI player to one commanding a much larger market share. "The jury remains out on that, but management is clearly going on the offense with the narrative," Rasgon said. Q1. How have AMD shares performed this year? A1. AMD shares have gained about 97 per cent this year and are up 16 per cent since October 6, when the company signed a deal with OpenAI. Q2. How is AMD challenging Nvidia? A2. To challenge Nvidia in AI, AMD is betting on its next-generation MI400 chips and the Helios rack system due in 2026. (You can now subscribe to our Economic Times WhatsApp channel)

AMD Sets Ambitious AI, Earnings Goals Through 2030 - Advanced Micro Devices (NASDAQ:AMD)

Advanced Micro Devices, Inc's (NASDAQ:AMD) 2025 Financial Analyst Day in New York outlined aggressive growth targets powered by soaring demand for artificial intelligence graphics processing units (GPUs) and Datacenter central processing units (CPUs). The chip designer impressed Wall Street with ambitious projections of over 35% long-term revenue growth and a $1 trillion AI market opportunity. Goldman Sachs analyst James Schneider maintained a Neutral rating on AMD with a price forecast of $210. JPMorgan analyst Harlan Sur reiterated a Neutral rating on AMD with a price forecast of $270. Bank of America Securities analyst Vivek Arya maintained a Buy rating on AMD with a price forecast of $300. Also Read: US Taps AMD For Supercomputers That Could Change Energy And Medicine Forever Goldman Sachs: Schneider rerated following the company's 2025 analyst day. AMD's upbeat message and long-term financial targets are above Wall Street expectations, driven by Datacenter GPUs and CPUs. Targets appear achievable, Schneider says. They rely heavily on gross margin and operating leverage and on scaling through key customers. OpenAI, for example, is a major expected revenue driver. While AMD makes strong progress on its Datacenter GPU roadmap and continues to build momentum in CPUs, the stock's upside is limited until there's clearer visibility on the OpenAI-related revenue stream. Key highlights from the event included AMD's "AI Everywhere" strategy, with plans to expand across Datacenter, Client, and Edge markets and grow its semi-custom solutions for diverse end markets. AMD projected long-term revenue growth above 35%, led by over 60% Datacenter growth and more than 80% CAGR in AI revenue, while targeting gross margins of 55-58%, operating margins above 35%, and EPS around $20 -- all topping consensus estimates. Schneider projected fiscal 2025 revenue of $34.04 billion and EPS of $2.80. AMD also updated its 2030 Datacenter total addressable market (TAM) to ~$1 trillion and reported strong enterprise momentum, including 2 times year-over-year growth in EPYC server consumption and PC platform wins with Dell, HP, Lenovo, and Asus. Schneider highlighted AMD's progress in software, noting a 10 times rise in ROCm downloads and expanded AI developer programs. Finally, AMD previewed its MI450 AI accelerator, expected in the second half of 2026, which it claims will match Nvidia's Vera Rubin with 50% higher memory capacity and bandwidth. JMorgan: Sur reiterated confidence in AMD's strong competitive positioning and AI-driven growth potential following the event. The analyst's model sees AMD achieving 55-58% gross margins and over 35% operating margins, up from the firm's 2025 estimates of roughly 52% and 22%, respectively -- showing clear operating leverage. Sur expects AMD's Data Center revenue to grow sharply as AI GPUs (MI450/Helios) ramp up and CPU share rises from 40% to over 50% within five years. The analyst sees potential earnings power of $11-$12 by 2027. Bank of America Securities: Arya said double-digit market share target, AMD could generate over $100 billion in annual data center revenue, up from about $16 billion currently. The analyst noted that AMD has visibility into new multi-gigawatt AI customer deployments starting with the MI450 generation in the second half of 2026, and flagged the AWS re:Invent event in December as a potential catalyst for announcements. He said AMD expects its core businesses -- Client, Gaming, and Embedded -- to grow at over 10% CAGR over the next three to five years, driving $25-$30+ in EPS power by 2030. Arya noted AMD's robust AI roadmap and annual product cadence position it to achieve a 10%+ AI market share in one of the fastest-growing semiconductor segments. Price Action: AMD stock was trading higher by 10.35% to $262.09 at last check on Wednesday. Read Next: Nvidia, AMD Lead Semiconductor Rally After Taiwan Semiconductor's Strong October Sales Image: Shutterstock AMDAdvanced Micro Devices Inc$258.668.90%OverviewMarket News and Data brought to you by Benzinga APIs

Why AMD Stock Managed to Post Big Gains in This Week's Volatile Trading | The Motley Fool

Advanced Micro Devices (AMD 0.56%) stock managed to close out the past week of trading with substantial gains despite bearish momentum for artificial intelligence (AI). The company's share price gained 5.7% across the stretch. Meanwhile, the S&P 500 inched 0.1% higher after some big swings, and the Nasdaq Composite declined 0.5%. AMD's valuation defied valuation gravity impacting AI stocks thanks to a strong showing at its investor day conference. Following its presentation, the stock saw a wide range of price-target hikes and ratings upgrades from analysts. Artificial intelligence stocks got hit with big valuation pullbacks as investors responded to general valuation concerns and reacted to macroeconomic and geopolitical risk factors. Despite some powerful selling momentum impacting the category, AMD's share price marched higher, thanks to information shared at the company's investor conference. The company continues to see room for significant market share expansion in the AI data center graphics processing unit (GPU) space and expects to continue gaining ground against Intel in the central processing unit (CPU) markets for PCs and servers. On the one hand, AMD has been scoring some meaningful wins in the AI processor category, with its recent deal with OpenAI potentially representing a major turning point in the company's positioning in the market. Improving expectations for the company's outlook in AI have helped power big gains for the company's share price, which is now up 104% across 2025's trading. On the other hand, AMD stock still comes with some significant risk on the heels of its big gains. Pressure related to tech licensing from Arm Holdings, Nvidia's current dominance in GPUs for AI data centers, and margin pressures stemming from costs connected to gaining ground in the data center market were among the risk factors highlighted by analysts following the company's investor-day presentation.

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'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 Surges On Explosive AI Growth Targets, Analysts See Further Upside - Advanced Micro Devices (NASDAQ:AMD)

Advanced Micro Devices Inc (NASDAQ:AMD) shares are rising Wednesday following the company's analyst day. Multiple analysts raised price targets on the chip stock on the heels of the event. AMD shares are climbing with conviction. See the full story here. What To Know: AMD said it expects a more than 35% revenue compound annual growth rate over the next three to five years as it held its first financial analyst day since 2022 on Tuesday. The chipmaker guided for non-GAAP operating margins above 35% and gross margins ranging from 55% to 58%, as well as adjusted earnings per share of more than $20 on an annual basis. AMD expects the strong growth to be spearheaded by its AI data center business, which is anticipated to grow at a compound annual rate of more than 80%. 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. "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," said Lisa Su, chair and CEO of AMD. "We see a tremendous opportunity ahead to deliver sustainable, industry-leading growth. We have never been better positioned." Following AMD's financial analyst day, several analysts boosted price targets on the chip stock. Evercore ISI Group analyst Mark Lipacis maintained AMD with an Outperform and raised the price target from $270 to $283. Mizuho analyst Vijay Rakesh maintained AMD with an Outperform and raised the price target from $275 to $285. Morgan Stanley analyst Joseph Moore reiterated AMD with an Equal-Weight and price target of $260. Rosenblatt analyst Kevin Cassidy maintained AMD with a Buy and a price target of $300. Wedbush analyst Matt Bryson reiterated AMD with an Outperform and a price target of $290. AMD Price Action: AMD shares were up 6.26% at $252.39 at the time of publication on Wednesday, according to Benzinga Pro. Read Next: Eric Schmidt Says Free Chinese AI Models Could Overtake Western Systems In Global Use Image: Tada Images/Shutterstock.com AMDAdvanced Micro Devices Inc$252.836.45%OverviewMarket News and Data brought to you by Benzinga APIs

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 shares climb as investors cheer long-term growth targets

AMD shares rose nearly five per cent in premarket trading on Wednesday, a day after it laid out ambitious plans to reach US$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 per cent 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 per cent growth in its entire business each year and 60 per cent 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 per cent this year and are up 16 per cent since Oct. 6, when the company signed a deal with OpenAI. (Reporting by Rashika Singh and Siddarth S in Bengaluru)

AMD Plans 60% Data Center Revenue Growth Over Next Five Years with AI

AMD Expects 60% Growth in Data Center Revenue, Targeting $1 Trillion AI Market Over 3-5 Years Advanced Micro Devices (AMD) is aiming for substantial expansion in its data center business. At its 2025 analyst day, Chief Executive, Lisa Su, said AMD expects data center revenue to rise 60% over the next three to five years. The event also projected that the AI data center market could reach $1 trillion by 2030. Finance chief Jean Hu forecasts total revenue to grow 35% annually over five years. Reuters reported that aims to reach $100 billion in annual data center chip revenue within five years. These targets show the company's ambition to capture a larger share of high‑performance computing.

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 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 shares rise as investors cheer AI-driven revenue growth targets

(Reuters) -Advanced Micro Devices shares surged 6% on Wednesday after the chipmaker unveiled a bold $100 billion annual data-center revenue target, with plans to claim a larger slice of the booming artificial intelligence market dominated by Nvidia. The company was set to add over $26 billion to its market value if the premarket gains hold, a day after it laid out its three- to five-year goals such as more than tripling its earnings at its first analyst day in three years. The market for data-center chips could swell to $1 trillion by 2030, CEO Lisa Su told analysts, highlighting how the scramble for advanced AI has set off an infrastructure race and record spending by U.S. tech giants. Her prediction covers AMD's general-purpose processors, networking chips and AI accelerators, but it contrasts with Nvidia's far more bullish estimate of $3 trillion to $4 trillion in AI infrastructure spending by the end of the decade. AMD's targets are attainable, several analysts said, citing major tieups with OpenAI and Oracle that could generate tens of billions of dollars in sales and hints of ongoing talks with other top hyperscalers. AMD shares have gained about 97% this year and are up 16% since October 6, when the company signed a deal with OpenAI. To challenge Nvidia in AI, AMD is betting on its next-generation MI400 chips and the Helios rack system due in 2026. In the next three to five years, AMD expects 35% growth in its entire business each year and 60% in its data center business. It expects earnings to rise to $20 a share in the same period, while LSEG estimates peg its 2025 profit at $2.68 per share. Bernstein analyst Stacy Rasgon said the targets appear "somewhat aggressive/aspirational" as the outcome would hinge on AMD's ability to use Helios to shift from a marginal AI player to one commanding a much larger market share. "The jury remains out on that, but management is clearly going on the offense with the narrative." Nvidia investors looked unfazed, with the stock up 1.5%. (Reporting by Rashika Singh, Siddarth S and Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur)

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)