AMD Shares Soar 9% 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: Company Projections - CEO Lisa Su stated that AMD's revenue could grow 35% annually over the next five years, anticipating a significant market opportunity [1][2]. - The market for AMD's data center chips is expected to reach $1 trillion by 2030, with a potential "double-digit" market share in the data center segment over the next three to five years [2]. Group 2: Stock Performance - Following the announcement, AMD's stock surged by more than 9%, reaching approximately $260, recovering from a previous 2% decline [1]. Group 3: Analyst Opinions - Goldman Sachs analysts believe that AMD's growth projections are achievable 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 capture a larger market share, indicating uncertainty about the management's strategy [3].