AMD Shares Soar 7% After CEO Predicts $1 Trillion Data Center Market

Core Viewpoint - AMD is entering a new era of growth, with projected revenue growth of 35% annually over the next five years, driven by a potential $1 trillion market for data center chips, particularly fueled by demand for AI chips [1][2]. Group 1: Growth Projections - CEO Lisa Su indicated that AMD's revenue could grow 35% annually over the next five years, positioning the company for significant growth in a $1 trillion market [1][2]. - The market for AMD's data center chips is expected to rise to $1 trillion by 2030, largely due to high demand for AI chips [2]. Group 2: Market Share and Earnings - AMD aims to achieve a "double-digit" share in the data center market within the next three to five years [2]. - Earnings are projected to rise to $20 per share, reflecting the anticipated revenue growth [2]. Group 3: Analyst Perspectives - Goldman Sachs analysts believe that AMD's growth projections are feasible if the company scales effectively, manages costs, and increases profitability per sale [3]. - Bernstein analyst Stacy Rasgon described AMD's targets as "somewhat aggressive" and raised concerns about the company's ability to compete for a larger market share [3].