Advanced Micro Devices (NASDAQ:AMD) jumped more than 10% in early U.S. trading Wednesday, after unveiling ambitious long-term growth targets at its first financial analyst day in three years.
The stock has already climbed 16% since early October, when AMD signed a multiyear partnership with OpenAI, the creator of ChatGPT — a deal expected to generate tens of billions of dollars in annual revenue. The agreement eased investor concerns about AMD’s ability to compete with Nvidia, especially as global demand for AI-optimized chips continues to soar.
CEO Lisa Su projected that the data center chip market — central to powering AI models — could reach $1 trillion by 2030, driven by the ongoing AI boom. This compares to Nvidia CEO Jensen Huang’s estimate of a $3–$4 trillion AI infrastructure market by the start of the next decade.
In this context, AMD said it expects its annual data center revenue to hit $100 billion within five years, while earnings are projected to more than triple. The company aims for a revenue compound annual growth rate (CAGR) above 35% over the next three to five years, with adjusted operating margins exceeding 35% and adjusted earnings per share surpassing $20.
Su also revealed that AMD has built “an M&A machine” to expand its AI capabilities 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. “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.”
The company highlighted rapid progress in its data center segment, projecting over 60% revenue CAGR, as it prepares to launch its next-generation MI400 AI chips in 2026. AMD is targeting over 50% server CPU market share and more than 80% CAGR in data center AI revenue.
Its Instinct MI350 Series GPUs have become the fastest-scaling product in AMD’s history, with major deployments across cloud providers such as Oracle Cloud Infrastructure.
In its client and gaming division, AMD expects to exceed 40% market share, building on its installed base of over one billion AMD-powered gaming devices. The firm also anticipates 10%+ revenue CAGR across its embedded and gaming businesses.
Analysts at Stifel remained optimistic, writing:
“We continue to view AMD’s prospects positively within the accelerating AI total addressable market backdrop.”