Key Stats for AMD Stock
- Pre-market Price Change for AMD stock: 4.7%
- $AMD Share Price as of Nov. 11: $237
- 52-Week High: $267
- $AMD Stock Price Target: $273
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What Happened?
Advanced Micro Devices (AMD) stock is up almost 5% in pre-market trading following the company’s first analyst day since 2022, after CEO Lisa Su announced aggressive growth targets that would transform the chipmaker into a data center powerhouse.
AMD projected overall revenue growth of 35% annually over the next three to five years, driven by its AI accelerator business, which is expected to grow at a rate of 80% per year during that period.
Su told analysts the company sees a clear path to “double-digit” market share in data center AI chips, up from its current low single-digit position.
AMD forecasts hitting tens of billions of dollars in AI chip revenue by 2027, up from $5 billion in fiscal 2024. The tech giant also announced that it’s now targeting a $1 trillion total addressable market for AI data center parts by 2030, significantly higher than its previous estimate of $500 billion for 2028.
The presentation highlighted significant partnerships with OpenAI, Oracle, and Meta. The OpenAI deal alone covers six gigawatts of AI infrastructure over five years, with the first gigawatt expected to be deployed in 2026.
AMD executives spent considerable time detailing the MI450 series chips and Helios rack-scale systems, positioning these as competitive alternatives to Nvidia’s dominant AI accelerators.
AMD also provided upbeat guidance on its non-AI businesses and projects that the server CPU business will exceed a 50% market share, up from its current 40%, while client computing aims for over a 40% share, up from today’s 28%.
The embedded business, driven by semi-custom design wins totaling over $45 billion, is expected to outpace market growth significantly.
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What the Market Is Telling Us About AMD Stock
The uptick in AMD stock suggests investors remain bullish despite execution risks and ambitious growth targets.
With Nvidia controlling over 90% of the AI accelerator market and sporting a $4.6 trillion market cap compared to AMD’s $387 billion, the challenge is immense. Investors may also question whether AMD can convert pipeline opportunities into actual revenue at the projected pace.
However, CFO Jean Hu indicated that margins could trend toward the lower end of that range, depending on how quickly AI chip volumes ramp up, particularly in the second half of 2026.
While AMD emphasized it expects multiple gigawatt-scale customers beyond OpenAI, the market appears nervous about relying on a handful of hyperscalers for the bulk of growth.
The company’s disciplined approach to the OpenAI partnership helps, but the startup’s own funding questions add uncertainty.
For AMD stock to sustain its recent momentum, execution will be crucial, and the MI450 must ship on time with competitive performance.
The software stack must also close the gap with Nvidia’s CUDA ecosystem, while supply chain capacity for HBM memory and advanced packaging has to materialize.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
