AMD Stock: Chipmaker Targets 60% Data Center Revenue Growth by 2030

**AMD Projects 60% Growth in Data Center Revenue Over Next 3–5 Years**

At its recent Financial Analyst Day in New York, Advanced Micro Devices, Inc. (AMD) revealed ambitious growth targets, forecasting a 60% increase in data center revenue over the next three to five years. Starting from $16 billion projected in 2025, this surge underscores AMD’s commitment to expanding its presence in the increasingly critical AI data center market.

**Strong Market Opportunity in AI Data Centers**

AMD CEO Lisa Su highlighted a $1 trillion total addressable market for AI data centers over the coming five years, signaling immense potential for growth. The company’s CFO, Jean Hu, outlined broader financial goals, with total company revenue expected to rise by 35% over five years—from a current $34 billion to approximately $46 billion by 2030. The data center segment is anticipated to drive the majority of this expansion.

In addition, AMD aims to maintain healthy profitability with target gross margins between 55% and 58%, while operating margins are expected to exceed 35%. These figures reflect AMD’s balanced approach to capturing market share and sustaining strong financial performance.

**Key Customer Wins Bolster AI Growth Strategy**

AMD recently secured two major customer agreements set to begin in 2026:

– A substantial 6-gigawatt deal with OpenAI.
– A purchase commitment from Oracle for 50,000 AMD chips.

These contracts validate AMD’s growing capabilities in AI computing power. CEO Lisa Su also indicated that more gigawatt-scale opportunities are in the pipeline, involving AMD’s MI450 series chips and Helios rack-scale systems. Potential customers include hyperscale cloud providers, AI-native firms, and sovereign AI initiatives.

While no new partnerships were announced during the event, some analysts raised questions about power infrastructure requirements and customer financing for AI data centers. Su addressed these concerns optimistically, stating, “This is a very unique moment in AI, and we shouldn’t be shortsighted.”

**Expanding Server Market Share and Product Development**

AMD aims to increase its server revenue market share from the current 40% to 50%. The company is developing its next-generation MI500 series data center processors, which, alongside the MI450 series and its CPU lineup, are central to its growth plans.

Outside the data center segment, AMD’s client division—including gaming and PC chips—is projected to grow over 10% within five years. This growth partly depends on capturing market share from Intel, which continues its turnaround efforts, presenting AMD with an opportunity to strengthen its position.

**Stock Performance and Market Outlook**

AMD’s stock has experienced impressive gains, surging 96% year to date and 61% over the past 12 months. This performance outpaces its primary GPU competitor, Nvidia, whose stock rose 43% year to date and 32% over 12 months.

In Q3 2025, AMD posted a strong 36% revenue growth. Analysts remain bullish, maintaining strong buy ratings and raising price targets. With its MI450 and upcoming MI500 chips positioned to compete directly against Nvidia’s data center products, AMD is well poised to capitalize on the expanding AI and cloud computing markets.

**Conclusion**

AMD’s aggressive growth targets, sizable customer deals, and expanding market share ambitions indicate the company’s confidence in its AI data center strategy. As AI infrastructure demands grow, AMD’s advancements and partnerships position it as a key player in the evolving semiconductor landscape.
https://blockonomi.com/amd-stock-chipmaker-targets-60-data-center-revenue-growth-by-2030/

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