AMD Projects 60% Data Center Revenue Growth Amid AI Boom
Advanced Micro Devices unveiled ambitious growth targets at its Financial Analyst Day, forecasting a 60% surge in data center revenue over the next three to five years. The chipmaker's confidence stems from $16 billion in projected 2025 data center sales and major partnerships with OpenAI and Oracle set to commence in 2026.
CEO Lisa Su positioned AMD at the center of the AI revolution, estimating the total addressable market for AI data centers will reach $1 trillion within five years. The company's stock has nearly doubled year-to-date, outpacing even Nvidia's impressive 43% gain during the same period.
CFO Jean Hu outlined broader financial expectations, including 35% overall revenue growth from a $34 billion 2025 baseline. Gross margins are projected between 55-58%, with operating margins exceeding 35% as AMD capitalizes on soaring demand for AI infrastructure components.
