NEW YORK — Advanced Micro Devices Inc. (AMD) shares rose nearly five percent in premarket trading Wednesday following the company’s announcement of aggressive long term growth targets aimed at capturing a larger slice of the artificial intelligence chip market from market leader Nvidia.
The Santa Clara, California based semiconductor company on Tuesday unveiled plans to reach $100 billion in annual data center revenue within the next five years.
CEO Lisa Su said the company expects the market for data center chips to expand to $1 trillion by 2030, driven largely by AI adoption and increased software integration.
“With AI transforming the way companies operate, we believe AMD is well positioned to deliver superior performance and value in data centers worldwide,” Su said at the company’s first analyst day in three years, held in New York.
The announcement sparked optimism among investors, pushing AMD shares higher, while Nvidia shares rose about one and a half percent in premarket trading, reflecting cautious acknowledgment from the market leader.
AMD’s plan centers on challenging Nvidia in AI computing through its upcoming MI400 chip series and the Helios rack system, expected to debut in 2026. Nvidia currently dominates the AI chip ecosystem, holding a significant lead in both market share and industry adoption.
“AMD’s success will come from being better than Nvidia on whatever metrics matter most to the customers,” said Morgan Stanley analyst Rachel Thompson.
Those parameters may shift over time as bottlenecks like space, power, and component availability come into play. Overall, it remains a winner takes most market where the best return on investment generally prevails.
Financial executives provided additional context on growth expectations. CFO Jean Hu projected 35 percent annual growth for AMD’s entire business over the next three to five years, with data center revenue expected to expand by 60 percent annually.
The company also expects earnings to rise to $20 per share within the same period. For comparison, current estimates from London Stock Exchange Group data peg AMD’s 2025 profit at $2.68 per share.
Industry analysts described AMD’s projections as ambitious but highlighted potential challenges in execution. Supply chain constraints, the sustainability of AI infrastructure spending, and competition from Nvidia were cited as key risks.
“AMD is taking on one of the toughest competitors in tech,” said Daniel Kim, a semiconductor analyst at TechInsights. “While the growth targets are impressive, scaling production and securing market adoption will require precise execution and strategic partnerships.”
Analysts also noted that AMD’s partnership with OpenAI, signed earlier this month, could accelerate adoption of its AI focused chips by offering compatibility with widely used generative AI platforms. “This is a critical play in gaining credibility and traction in the AI ecosystem,” Kim added.
AMD shares have climbed roughly 97 percent year to date and surged 16 percent since October 6, when the OpenAI deal was announced. In contrast, Nvidia shares have experienced steadier growth, reflecting its entrenched position in AI computing and data center infrastructure.
The global AI chip market is projected to grow exponentially over the next decade. Analysts estimate that the total market for AI-related semiconductors and associated data center hardware could exceed $100 billion annually by the end of the decade, a target AMD aims to capture.
Morgan Stanley’s Thompson noted that the race in AI computing is likely to be concentrated, with a small number of companies capturing the majority of market revenue. “Success depends not only on performance but also on ecosystem integration, software support, and timing,” she said.
Industry observers and investors expressed cautious optimism about AMD’s roadmap. Michael Rivera, a portfolio manager at North Star Capital, said the company’s focus on AI and data centers aligns with broader market trends.
“Investors are excited by the growth potential, but execution will be key. A misstep in production or adoption could have significant repercussions,” he said.
Data center operators also weighed in. Karen Lee, CTO of a US based cloud services firm, noted, “If AMD delivers competitive AI chips at scale, it could provide more choices in the market and drive innovation. But Nvidia’s dominance and established ecosystem remain a formidable challenge.”
AMD’s five year plan hinges on its ability to deliver next generation products while capturing significant AI market share. The MI400 chips and Helios system are central to this strategy, offering higher performance per watt and scalable solutions for enterprise AI workloads.
Analysts expect the market to watch AMD closely over the next two years for signs of adoption and execution. Success could redefine competition in the AI chip space, while missteps may limit AMD’s ability to challenge Nvidia’s dominance.
AMD’s ambitious long term growth targets have energized investors and industry observers, highlighting the company’s intention to capitalize on the rapidly expanding AI data center market.
While the path forward faces challenges, including supply constraints and entrenched competition, the company’s roadmap reflects a high stakes effort to redefine its position in the global semiconductor industry.
Solid article! Thinking about bankroll management is huge in tournaments, especially with varying stack sizes. Seen some players jump into Vietnamese platforms like 99wim app download – interesting to see the different game options available there too! Good read.