The stock of Advanced Micro Devices (AMD) is up 5% after the chipmaker laid out ambitious plans to reach $100 billion U.S. in annual data centre revenue within five years.
AMD CEO Lisa Su said the market for the company’s data centre microchips and processors will reach $1 trillion U.S. by 2030, driven by global artificial intelligence (A.I.) demand.
Su also expressed confidence that AMD can take a larger share from A.I. chip leader Nvidia (NVDA), which currently controls 90% of the global market.
AMD will challenge Nvidia in A.I. computing through its next-generation MI400 microchip and Helios rack system ?that’s due out in 2026.
During an analyst day, Su said that AMD expects to achieve 35% growth in its entire business each year, and 60% in its data centre business, over the coming three to five years.
The company also expects its earnings to rise to $20 U.S. per share within the same three to five-year time horizon.
While investors are cheering the growth targets, some analysts warn about execution risks as well as excessive A.I. infrastructure spending and ?supply chain constraints.
AMD’s stock has gained 97% this year to trade at $237.52 U.S. per share.
