FILE PHOTO: An AMD logo and a computer motherboard appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -Advanced Micro Devices shares surged 7% on Wednesday after the chipmaker unveiled a bold $100 billion annual data-center revenue target, with plans to claim a larger slice of the booming artificial intelligence market dominated by Nvidia.
The company was set to add over $26 billion to its market value if the gains hold, a day after it laid out its three- to five-year goals such as more than tripling its earnings at its first analyst day in three years.
The market for data-center chips could swell to $1 trillion by 2030, CEO Lisa Su told analysts, highlighting how the scramble for advanced AI has set off an infrastructure race and record spending by U.S. tech giants.
Her prediction covers AMD's general-purpose processors, networking chips and AI accelerators, but it contrasts with Nvidia's far more bullish estimate of $3 trillion to $4 trillion in AI infrastructure spending by the end of the decade.
AMD's targets are attainable, several analysts said, citing major tieups with OpenAI and Oracle that could generate tens of billions of dollars in sales and hints of ongoing talks with other top hyperscalers.
AMD shares have gained about 97% this year and are up 16% since October 6, when the company signed a deal with OpenAI.
To challenge Nvidia in AI, AMD is betting on its next-generation MI400 chips and the Helios rack system due in 2026.
In the next three to five years, AMD expects 35% growth in its entire business each year and 60% in its data center business. It expects earnings to rise to $20 a share in the same period, while LSEG estimates peg its 2025 profit at $2.68 per share.
Bernstein analyst Stacy Rasgon said the targets appear "somewhat aggressive/aspirational" as the outcome would hinge on AMD's ability to use Helios to shift from a marginal AI player to one commanding a much larger market share.
"The jury remains out on that, but management is clearly going on the offense with the narrative."
Nvidia investors looked unfazed, with the stock up 1.5%.
(Reporting by Rashika Singh, Siddarth S and Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur)
