AMD Stock Rises After Chipmaker Raises Financial Targets

Core Insights - AMD forecasts revenue growth over the next three to five years at a compound annual growth rate (CAGR) exceeding 35%, with its data center business expected to grow at a CAGR greater than 60% driven by AI processors [2][3] - The company anticipates an adjusted operating profit margin greater than 35% and adjusted earnings per share exceeding $20, with gross margins projected between 55% to 58% [2] - AMD's total addressable market for data center products is projected to reach $1 trillion by 2030, up from $200 billion this year [3] Stock Performance - Following the financial analyst day, AMD stock closed at 237.52, down 2.7%, but rebounded to over 10% increase in morning trades, reaching 261.80, nearing its all-time high of 267.08 [4] - Nvidia's stock, a competitor in AI chips, saw a slight decline to 192.06, influenced by SoftBank's sale of its stake in the company [4] Strategic Partnerships and Product Development - AMD highlighted key customers for its AI processors, including Meta Platforms, OpenAI, and Oracle, and is currently shipping the Instinct MI350 series GPUs, with plans to deliver MI450 series GPUs in Q3 2026 and MI500 series in 2027 [5] - Analysts noted the potential for additional multi-gigawatt customer engagements, although no new partnerships were announced beyond existing ones [6] Analyst Ratings and Market Sentiment - Several Wall Street firms raised their price targets for AMD stock post-presentation, with Melius Research increasing its target from 300 to 380 while maintaining a buy rating [7] - Analyst opinions varied, with some expressing skepticism about AMD's presentation, describing it as "more sizzle than steak," while others recognized genuine interest in the MI450 [8]