Core Insights - AMD expects its data center revenue to increase by 60% over the next three to five years, reaching $16 billion by 2025, driven by advancements in AI and competition with Nvidia [1] - The total addressable market for AI data centers is projected to grow to $1 trillion over the next five years, encompassing GPUs, CPUs, and networking equipment [2] - AMD's overall revenue is anticipated to rise by 35% over the next five years from $34 billion in 2025, primarily fueled by the data center business [2] Financial Projections - AMD's gross margins are projected to be between 55% and 58%, while operating margins are expected to exceed 35% over the next three to five years [3] - The company aims to capture up to 50% of the server revenue market share, increasing from the current 40% [7] Strategic Initiatives - AMD has secured a 6-gigawatt deal with OpenAI and plans to supply Oracle with 50,000 chips, both projects set to commence in 2026 [3] - The company is also developing its next-generation MI500 series data center processors, although specific details on their capabilities were not disclosed [6] Market Positioning - AMD is targeting increased market share from Intel, which is currently undergoing a multi-year turnaround [8] - The company anticipates over 10% revenue growth in its client market, which includes gaming and PC chip sales, over the next five years [7]

Advanced Micro Devices (AMD) CEO Lisa Su said she believes the data center market will be worth $1 trillion by 2030. AMD stock rose 5% in premarket trading on Wednesday following the news. Su made the announcement during the chipmaker's Financial Analyst Day in New York on Tuesday, where she outlined the company's revenue growth and projections for its performance moving forward. Su also revealed that the firm is seeing strong momentum with multiple gigawatt-scale project opportunities for its MI450 ser ...

Advanced Micro Devices (AMD) stock is screaming higher in premarket action, up 33% on a landmark partnership with OpenAI. Under the terms of the deal – which represents one of the largest GPU deployment agreements in the artificial intelligence (AI) industry – OpenAI received warrants for up to 160 million AMD shares, potentially giving them an approximately 10% ownership stake upon meeting specific deployment milestones and share price targets. The AMD-OpenAI deal involves deploying 6 gigawatts of AMD In ...