AMD Projects 35% Annual Revenue Growth Over Next Five Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11h ago
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Source: Fool
- Data Center Growth: AMD anticipates a 60% annual growth in its data center business over the next three to five years, driven by increasing demand for server processors and AI data center graphics cards, significantly enhancing its competitive position in the market.
- Gaming Business Outlook: Partnerships with Microsoft and Sony are expected to drive revenue growth in AMD's gaming segment, with the launch of next-gen consoles likely to yield substantial profits, further solidifying its market presence.
- Client PC Market Share Increase: AMD's revenue share in the client processor market is projected to rise from 28% to 40% over the next three to five years, positioning the company to capture a larger share in the rapidly growing AI-enabled PC market and boost overall revenue.
- Profitability Expectations: AMD forecasts earnings per share exceeding $20 by 2030, a fivefold increase from $3.97 in 2025, suggesting that with a 25x earnings multiple, its stock price could reach $500, indicating strong potential for becoming a multibagger.
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: 204.680
Low
200.00
Averages
281.78
High
350.00
Current: 204.680
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.
