SANTA CLARA, Nov 12 — Advanced Micro Devices (AMD) shares surged seven per cent on Wednesday after the chipmaker unveiled a bold US$100 billion (RM413.6 billion) annual data-center revenue target, with plans to claim a larger slice of the booming artificial intelligence market dominated by Nvidia.
The company was set to add over US$26 billion (RM107.5 billion) to its market value if the gains hold, a day after it laid out its three- to five-year goals, such as more than tripling its earnings at its first analyst day in three years.
Its chief executive officer Lisa Su told analysts that the market for data-centre chips could swell to US$1 trillion (RM4.14 trillion) by 2030, highlighting how the scramble for advanced AI has set off an infrastructure race and record spending by United States (US) tech giants.
Her prediction covers AMD's general-purpose processors, networking chips and AI accelerators, but it contrasts with Nvidia's far more bullish estimate of US$3 trillion (RM12.41 trillion) to US$4 trillion (RM16.55 trillion) in AI infrastructure spending by the end of the decade.
Several analysts have said that AMD's targets are attainable, citing major tieups with OpenAI and Oracle that could generate tens of billions of dollars in sales and hints of ongoing talks with other top hyperscalers.
AMD shares have gained about 97 per cent this year and are up 16 per cent since October 6, when the company signed a deal with OpenAI.
To challenge Nvidia in AI, AMD is betting on its next-generation MI400 chips and the Helios rack system due in 2026.
In the next three to five years, AMD expects 35 per cent growth in its entire business each year and 60 per cent in its data centre business. It expects earnings to rise to US$20 (RM82.73) a share in the same period, while LSEG estimates peg its 2025 profit at US$2.68 (RM11.09) per share.
Bernstein analyst Stacy Rasgon said the targets appear "somewhat aggressive/aspirational" as the outcome would hinge on AMD's ability to use Helios to shift from a marginal AI player to one commanding a much larger market share.
"The jury remains out on that, but management is clearly going on the offense with the narrative," he said.
Nvidia investors looked unfazed, with the stock up 1.5 per cent.
