AMD Stock: Chipmaker Targets 60% Data Center Revenue Growth by 2030

TLDR

• AMD forecasts 60% data center revenue growth over three to five years from $16 billion in 2025
• Overall company revenue expected to rise 35% to reach approximately $46 billion by 2030
• Major contracts with OpenAI (6-gigawatt deal) and Oracle (50,000 chips) begin in 2026
• AMD targets 50% server market share, up from current 40%, while competing against Intel and Nvidia
• Stock has surged 96% year to date, beating Nvidia’s 43% gain in same period

AMD revealed aggressive growth targets at its Financial Analyst Day in New York on Tuesday. The company expects data center revenue to climb 60% over the next three to five years.

Starting from $16 billion in 2025, this projection puts AMD’s data center business on track for substantial expansion. CEO Lisa Su highlighted a $1 trillion total addressable market for AI data centers over the next five years.

Advanced Micro Devices, Inc., AMD

CFO Jean Hu outlined broader financial goals during the presentation. Total company revenue should increase 35% over five years from the current $34 billion baseline.

That would put AMD’s annual revenue near $46 billion by 2030. The data center segment will account for the majority of this growth.

Hu also shared margin targets for the period. Gross margins are expected to land between 55% and 58%.

Operating margins should exceed 35%. These figures reflect AMD’s strategy to capture market share while maintaining profitability.

Customer Wins Position AMD for AI Growth

AMD secured two major customer agreements recently. The OpenAI deal spans 6 gigawatts of computing power and launches in 2026.

Oracle committed to purchasing 50,000 AMD chips. This contract also begins next year.

Su indicated more gigawatt-scale opportunities are in the pipeline. These projects would utilize AMD’s MI450 series chips and Helios rack-scale systems.

Potential customers include hyperscalers, AI-native firms, and sovereign AI initiatives. No new partnerships were announced during Tuesday’s event.

Some analysts questioned power infrastructure requirements for AI data centers. Concerns also emerged about customer financing capabilities.

Su defended the company’s optimism. “This is a very unique moment in AI, and we shouldn’t be shortsighted,” she stated.

Server Market Share and Product Development

AMD is working on its MI500 series data center processors. Details about these next-generation chips remain limited.

The company’s current MI450 series will drive near-term revenue. AMD’s data center CPU lineup also contributes to growth projections.

The chipmaker aims for 50% of server revenue market share. Current share stands at 40%.

AMD’s client segment, covering gaming and PC chips, should grow over 10% in five years. This expansion partly relies on taking share from Intel.

Intel continues working through its turnaround strategy. AMD sees this as an opportunity to gain ground.

Stock Performance

AMD shares have climbed 96% year to date. Over 12 months, the stock is up 61%.

Nvidia stock rose 43% year to date and 32% over 12 months. AMD has outperformed its primary GPU rival during both timeframes.

The company posted 36% revenue growth in Q3 2025. Analysts maintain a strong buy rating with increased price targets.

AMD’s MI450 and future MI500 chips will compete directly with Nvidia’s data center offerings. The Oracle and OpenAI deals represent validation of AMD’s AI capabilities.

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