AMD Forecasts 60% CAGR in Data Center Revenue Driving Market Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Market Potential: According to Grand View Research, the AI sector is projected to grow at a CAGR of 31%, suggesting that related stocks could achieve tenfold gains by 2036, highlighting the investment appeal of this burgeoning field.
- AMD's Competitive Edge: Despite lagging behind Nvidia in the AI chip market, AMD claims its upcoming MI450 accelerator could help it catch up, with long-term revenue growth expected at 30% and a remarkable 60% CAGR for its data center segment.
- CoreWeave's Revenue Surge: CoreWeave reported a 204% year-over-year revenue increase to nearly $3.6 billion in the first nine months of 2025, although costs surged 263%, yet its rapid growth potential continues to attract investor interest.
- Upstart's Return to Profitability: Upstart generated $685 million in revenue during the first nine months of 2025, a 57% increase, and returned to profitability with a $35 million profit, showcasing its disruptive potential in the loan evaluation market, despite an 88% decline from its pandemic peak.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 281.78 USD with a low forecast of 200.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
37 Analyst Rating
27 Buy
10 Hold
0 Sell
Moderate Buy
Current: 215.340
Low
200.00
Averages
281.78
High
350.00
Current: 215.340
Low
200.00
Averages
281.78
High
350.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
