AMD CEO Lisa Su Said AI Demand Is ‘Insatiable.' The Chipmaker's Stock Is Soaring

Core Insights - Advanced Micro Devices (AMD) shares have approximately doubled in value in 2025, with a significant boost following the company's first analyst day where ambitious targets were unveiled [1][7] - The stock rose about 10% in early trading, leading gains on the S&P 500, while the semiconductor index (SOX) increased by 1.5% [1][3] Financial Outlook - CEO Lisa Su indicated that AMD is experiencing "insatiable" demand for AI, projecting revenue growth of 35% per year over the next three to five years, with gross margins expected to be between 55% and 58% [2] - AMD's third-quarter adjusted gross margin was reported at 54% [2] - The company revised its total addressable AI market estimate to over $1 trillion by 2030, a significant increase from the previous target of $500 billion by 2028 [2][6] Market Sentiment - The increase in AMD's stock price reflects growing investor optimism regarding the company's potential, especially in comparison to AI chip leader Nvidia [3] - Despite the positive outlook, some Wall Street analysts remain cautious, expressing concerns about a potential AI bubble that could impact AMD's upward momentum [3][4] - Citi analysts maintained a neutral rating, suggesting that while AMD's targets may be met or exceeded until the AI bubble bursts, investor sentiment indicates that many are already wary of this risk [4]