Advanced Micro Devices (AMD-US) is doubling down on artificial intelligence and data centers, unveiling a long-term roadmap that sent its shares up nearly 5% in after-hours trading Tuesday (Nov. 11). The announcement came during AMD’s first Analyst Day since 2022, where CEO Lisa Su outlined ambitious targets that highlight the company’s confidence in its technology pipeline and market positioning.
Growth Targets: Aiming High
AMD forecasts:
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Overall revenue CAGR above 35% over the next three to five years.
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Non-GAAP operating margin exceeding 35%.
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Non-GAAP EPS surpassing $20 per share.
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Data center revenue CAGR above 60%.
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AI data center revenue CAGR above 80%.
Su emphasized that by 2030, the data center chip market could reach $1 trillion, with AI as the primary driver. AMD’s portfolio—spanning CPUs, networking chips, and dedicated AI accelerators—positions the company to capture a significant slice of that opportunity.
Data Center Momentum
The centerpiece of AMD’s strategy is its Instinct GPU line, particularly the MI350 series, which the company described as its fastest-growing product ever. Already deployed by major cloud providers such as Oracle Cloud Infrastructure, the GPUs are fueling AMD’s push into high-performance computing.
Looking ahead, AMD plans to launch its next-generation "Helios" system featuring MI450 GPUs in Q3 2026. The company expects this rollout to further accelerate adoption and expand its server market share beyond 50%.
Consumer and Gaming Outlook
While AI and data centers dominate headlines, AMD also sees steady growth in consumer and gaming markets. With more than 1 billion gaming devices powered by AMD chips, the company expects to push its consumer revenue share above 40%. Embedded systems, consumer devices, and gaming are forecast to grow at a 10% CAGR, providing a diversified revenue base.
Analyst and Market Reaction
The roadmap helped AMD recover from a 2.65% decline in regular trading, as AI-related stocks faced broader weakness. Investors welcomed the clarity on long-term growth, particularly the aggressive targets for data center and AI revenue.
Analysts note that AMD’s projections underscore its determination to challenge Nvidia’s dominance in AI chips. While Nvidia still controls more than 90% of the AI GPU market, AMD’s expanding partnerships and product launches suggest it is carving out meaningful share.
The Bottom Line
AMD’s Analyst Day reinforced the company’s message: AI demand is exploding, and AMD intends to be a central player in meeting it. With ambitious growth targets, strong product momentum, and expanding partnerships, the company is positioning itself for a new era of high-performance computing.
For investors, the roadmap offers both reassurance and a reminder—AMD’s future hinges on execution in the fiercely competitive AI and data center markets.