Advanced Micro Devices (AMD) surged 7% on Wednesday after unveiling an ambitious plan to reach $100 billion in annual data-center revenue, signaling its intent to challenge Nvidia’s dominance in the booming AI chip market.
The rally could add more than $26 billion to AMD’s market value, following its first analyst day in three years, where CEO Lisa Su outlined a roadmap to triple earnings and achieve 35% annual business growth over the next five years.
“The market for data-center chips could reach $1 trillion by 2030,” Su said, pointing to surging demand for AI-optimized infrastructure from global tech giants.
🔹 Strategic Highlights
- 🎯 $100B annual data-center revenue target
- 🚀 MI400 chips & Helios rack system (2026 launch) to rival Nvidia’s AI accelerators
- 🤝 Major partnerships: OpenAI & Oracle, with talks ongoing with other hyperscalers
- 📈 Projected earnings: $20 per share within 3–5 years (vs. LSEG’s $2.68 forecast for 2025)
- 💹 Stock performance: +97% YTD, +16% since the OpenAI deal (Oct 6)
“The targets are ambitious, but AMD is clearly on the offensive,” said Stacy Rasgon, Analyst at Bernstein, noting the company’s bid to evolve from a marginal AI player to a core contender.
Even Nvidia investors appeared unbothered — its shares edged 1.5% higher on the same day.
💡 Insight:
AMD’s strategy marks the next phase of the AI hardware arms race, as chipmakers pivot from general-purpose processors to AI-accelerated computing platforms powering data centers, cloud systems, and next-gen enterprise infrastructure.