Prediction: The Data Center Boom Is Just Starting, Making AMD a Long-Term AI Power Player

Core Viewpoint - Advanced Micro Devices (AMD) is positioned to be a significant player in the semiconductor industry, particularly in the AI infrastructure sector, despite being overshadowed by competitors like Nvidia [1][2]. Group 1: Market Position and Competition - Nvidia holds over 90% market share in the data center GPU space, making it the clear leader, while AMD is the second player in this market [2]. - AMD is also a leader in the data center CPU market, gaining market share, which is a growing segment, albeit smaller than the GPU market [9]. Group 2: AI Infrastructure Opportunities - The AI infrastructure buildout is rapidly expanding, driven by cloud computing and large tech companies investing in data centers to meet AI demand [5]. - OpenAI has made significant data center deals, including a $300 billion deal with Oracle and a $38 billion deal with Amazon, and has partnered with AMD, potentially acquiring up to a 10% stake in the company [6][7]. Group 3: Growth Potential and Financial Projections - AMD aims for a revenue growth of over 35% CAGR through 2030, targeting more than $150 billion in revenue, with expectations of capturing a double-digit share in the AI data center chip market and over 50% in the data center CPU market [10]. - The company forecasts a 60% revenue CAGR in its data center segment and an 80% CAGR in AI data center revenue, with a target of over $20 in adjusted earnings per share by 2030 [10][11].