AMD Stock Soars Over 10% After Unveiling Bold AI Growth Targets
Advanced Micro Devices (NASDAQ: AMD) surged more than 10% in early U.S. trading on Wednesday after the company unveiled long-term growth targets at its first financial analyst day in three years.
The rally comes as AMD’s share price has climbed 16% since early October, following the announcement of a multiyear deal with ChatGPT maker OpenAI — a partnership expected to generate tens of billions of dollars in annual revenue. The agreement has strengthened investor confidence in AMD’s ability to compete with Nvidia amid soaring global demand for AI-optimized chips.
AMD Targets $100 Billion Data Center Revenue
CEO Lisa Su projected that the AI data center chip market could reach $1 trillion by 2030, driven by the global artificial intelligence boom. By comparison, Nvidia CEO Jensen Huang previously estimated the AI infrastructure market could expand to as much as $3 trillion to $4 trillion in the next decade.
AMD said it expects annual data center revenue to hit $100 billion within five years, while overall earnings are set to more than triple. The company is targeting a 35% compound annual growth rate (CAGR) over the next three to five years, with operating margins above 35% and adjusted earnings per share exceeding $20.
Su also highlighted AMD’s focus on AI-driven acquisitions, calling the company “an M&A machine” built to strengthen its software and AI ecosystem.
AMD Poised to Lead the Next Era of AI Computing
“AMD is entering a new era of growth fueled by our leadership technology roadmaps and accelerating AI momentum,” said Su. She emphasized AMD’s broad product portfolio and deep strategic partnerships as key advantages in the next generation of high-performance and AI computing.
The semiconductor giant plans to launch its next-generation MI400 AI chip series in 2026 and expects to achieve over 60% revenue CAGR in its data center segment. AMD is targeting more than 50% server CPU market share and over 80% CAGR in AI data center revenue.
The company also reported that its Instinct MI350 Series GPUs are the fastest-ramping product in its history, with major deployments across cloud platforms like Oracle Cloud Infrastructure.
In its client and gaming segments, AMD aims to surpass 40% market share while expanding its base of over one billion AMD-powered gaming devices. It expects 10% annual revenue growth in its embedded, client, and gaming divisions.
Analysts at Stifel said they remain bullish, noting AMD’s strong position within the rapidly expanding AI market.
