Advanced Microdevices, Inc’s (NASDAQ:AMD) 2025 Financial Analyst Day in New York outlined aggressive growth targets, driven by surging demand for graphics processing units (GPUs) for artificial intelligence and central processing units (CPUs) in data centers.
The chip designer impressed Wall Street with ambitious predictions of more than 35% long-term revenue growth and a $1 trillion AI market opportunity.
- Goldman Sachs analyst James Schneider maintained a neutral rating on AMD with a price forecast of $210.
- JPMorgan analyst Harlan Sur reiterated a neutral rating on AMD with a price forecast of $270.
- Bank of America Securities analyst Vivek Arya maintained a buy rating on AMD with a price forecast of $300.
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Goldman Sachs: Schneider reiterated this after the company’s analyst day in 2025. AMD’s bullish message and long-term financial targets exceed Wall Street expectations, powered by Datacenter GPUs and CPUs.
Goals seem achievable, says Schneider. They rely heavily on gross margin and operating leverage, and on scaling through key customers. For example, OpenAI is a major expected revenue source. While AMD is making strong progress on its Datacenter GPU roadmap and continues to build momentum in CPUs, the stock’s upside potential is limited until there is clearer visibility into the OpenAI-related revenue stream.
Key highlights of the event included AMD’s “AI Everywhere” strategy, with plans to expand into data center, client and edge markets and expand its semi-custom solutions for various end markets. AMD forecast long-term revenue growth of more than 35%, led by more than 60% data center growth and more than 80% CAGR in AI revenues, while targeting gross margins of 55-58%, operating margins above 35% and earnings per share around $20 – all above consensus estimates.
Schneider forecast fiscal 2025 revenue of $34.04 billion and earnings per share of $2.80.
AMD also updated its 2030 total addressable market (TAM) for data centers to ~$1 trillion and reported strong business momentum, including 2x year-over-year growth in EPYC server consumption and PC platform wins with Dell, HP, Lenovo and Asus. Schneider highlighted AMD’s progress in software, noting a tenfold increase in ROCm downloads and expanded AI developer programs.
Finally, AMD previewed its MI450 AI accelerator, expected in the second half of 2026, which it says will rival Nvidia’s Vera Rubin with 50% higher memory capacity and bandwidth.
JMorgan: After the event, Sur reiterated his confidence in AMD’s strong competitive position and AI-powered growth potential.
According to the analyst model, AMD achieves a gross margin of 55-58% and an operating margin of over 35%, up from the company’s 2025 estimates of roughly 52% and 22% respectively, demonstrating clear operating leverage.
Sur expects AMD’s data center revenue to grow sharply as AI GPUs (MI450/Helios) proliferate and CPU share rises from 40% to over 50% within five years. The analyst expects potential earnings power of $11 to $12 in 2027.
Bank of America Securities: Arya said that with a double-digit market share target, AMD could generate well over $100 billion in annual data center revenue, up from about $16 billion currently.
The analyst noted that AMD has visibility into new multi-gigawatt AI deployments at customers, starting with the MI450 generation in the second half of 2026, and flagged the AWS re:Invent event in December as a potential catalyst for announcements. He said AMD expects its core businesses – Client, Gaming and Embedded – to grow at more than 10% CAGR over the next three to five years, delivering earnings per share growth of $25 to $30 by 2030.
Arya noted that AMD’s robust AI roadmap and annual product cadence enable AMD to achieve an AI market share of more than 10% in one of the fastest-growing semiconductor segments.
Price promotion: AMD shares were trading 10.35% higher at $262.09 at last check on Wednesday.
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