Advanced Micro Devices (NASDAQ:AMD) gained 5.5% in premarket trading on Wednesday, after the semiconductor giant outlined aggressive long-term growth goals during its first financial analyst day in three years.
The company’s stock has climbed 16% since early October, following the announcement of a multiyear partnership with ChatGPT creator OpenAI, a deal expected to generate tens of billions of dollars in annual revenue. The agreement has strengthened investor confidence in AMD’s ability to challenge rival Nvidia, especially as demand for AI-optimized chips continues to surge globally.
CEO Lisa Su projected that the data center chip market — a key segment supporting advanced AI models — could reach $1 trillion by 2030, driven by the ongoing AI revolution. By comparison, Nvidia CEO Jensen Huang has estimated the broader AI infrastructure market could reach $3 trillion to $4 trillion early in the next decade.
Within this context, AMD anticipates its annual data center revenue will rise to $100 billion over the next five years, with earnings expected to more than triple.
The company aims for a compound annual growth rate (CAGR) of more than 35% in revenue over the next three to five years, alongside adjusted operating margins above 35% and adjusted earnings per share exceeding $20. Su also revealed that AMD has built “an M&A machine” to expand its AI portfolio through targeted software acquisitions.
“AMD is entering a new era of growth fueled by our leadership technology roadmaps and accelerating AI momentum,” said Lisa Su during her presentation. “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.”
AMD highlighted robust growth in its data center business, where it expects to deliver over 60% revenue CAGR. The company aims to capture more than 50% market share in server CPUs and achieve over 80% CAGR in data center AI revenue.
The chipmaker emphasized the success of its Instinct MI350 Series GPUs, which it said represent the fastest-ramping product in company history, with deployments already underway at major cloud providers such as Oracle Cloud Infrastructure.
Looking ahead, AMD plans to launch its next-generation MI400 AI chips in 2026. In its client and gaming divisions, the company expects to exceed 40% market share in client revenue and maintain a base of over one billion AMD-powered gaming devices, while targeting more than 10% revenue CAGR across its embedded, client, and gaming businesses.
Analysts at Stifel maintained a positive view, noting: “We continue to view AMD’s prospects positively within the accelerating AI total addressable market backdrop.”