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AMD Shares Rise Amid Ambitious AI Revenue Growth Targets

  • tech360.tv
  • 4 hours ago
  • 2 min read

Advanced Micro Devices shares surged 7% following the chipmaker’s reveal of a USD 100 billion annual data-centre revenue target. The company aims for a larger portion of the growing artificial intelligence market, currently led by Nvidia. This surge was projected to add over USD 26 billion to AMD’s market value.


Credit: AMD
Credit: AMD

AMD also outlined its three- to five-year goals, which include more than tripling its earnings at its first analyst day in three years. Chief Executive Officer Lisa Su told analysts the data-centre chip market could expand to USD 1 trillion by 2030. Su highlighted the intense competition for advanced AI, driving significant infrastructure investment and record spending from U.S. technology firms.


Su’s prediction covers AMD’s general-purpose processors, networking chips, and AI accelerators. This contrasts with Nvidia’s more optimistic projection of USD 3 trillion to USD 4 trillion in AI infrastructure spending by the end of the decade.


Several analysts considered AMD’s targets achievable. They cited significant partnerships with OpenAI and Oracle, which could generate tens of billions of dollars in sales. Hints of ongoing discussions with other major hyperscalers were also noted.


Credit: AMD
Credit: AMD

AMD shares have increased about 97% this year and are up 16% since October 6, when the company signed a deal with OpenAI. To compete with Nvidia in AI, AMD plans to leverage its next-generation MI400 chips and the Helios rack system due in 2026.


Over the next three to five years, AMD anticipates 35% yearly growth across its entire business, with 60% growth in its data centre operations. The company expects earnings to reach USD 20 per share within this period. LSEG estimates AMD’s 2025 profit at USD 2.68 per share.


Bernstein analyst Stacy Rasgon commented that the targets appear somewhat aggressive and aspirational. Rasgon noted the outcome would depend on AMD’s ability to use Helios to transition from a minor AI player to one with substantial market share. Rasgon stated, "The jury remains out on that, but management is clearly going on the offense with the narrative." Nvidia investors appeared unfazed by the news, with the stock rising 1.5%.

  • Advanced Micro Devices shares rose 7% after unveiling a USD 100 billion annual data-centre revenue target.

  • The company aims to increase its share of the artificial intelligence market, currently dominated by Nvidia.

  • CEO Lisa Su predicts the data-centre chip market could reach USD 1 trillion by 2030.



Source: REUTERS

 
 
 

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