AMD Stock Surges 8% on Robust 5-Year AI Data Center Forecast

Advanced Micro Devices (AMD) shares jumped over 8% Wednesday after the company projected explosive growth in its data center business. The chipmaker anticipates a 60% revenue increase in this segment over the next three to five years, building on its $16 billion 2025 target. AMD's aggressive positioning against Nvidia in the AI accelerator market appears to be gaining traction.

CEO Lisa Su revealed ambitious projections during AMD's Financial Analyst Day, estimating the AI data center market will balloon to $1 trillion by 2029. The forecast encompasses GPUs, CPUs, and networking infrastructure. CFO Jean Hu complemented this outlook with a 35% five-year revenue growth target across all business segments.

The semiconductor firm's year-to-date stock performance has dwarfed many tech benchmarks, climbing 139% as AI-driven demand fuels the chip sector. While some analysts voice bubble concerns, AMD continues capitalizing on the AI infrastructure boom through both its GPU and CPU product lines.