Advanced Micro Devices (AMD) CEO Lisa Su boosted shareholder morale during the semiconductor company’s latest investor day event. She did so with the bold prediction that the company’s revenue growth will increase by 35% annually over the next three to five years. Su said this is due to the increased demand for AI data centers, which is a market she expects to reach $1 trillion by 2030.
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According to Lisa Su, AMD is ready to meet the growing demand for data center components. She stated, “We have now all of the pieces to deliver full AI factories, and that is really our goal throughout this entire stack, across CPUs, GPUs, software, networking, and our cluster-level systems design.”
Of course, there are always concerns that AMD won’t be able to compete with Nvidia (NVDA) in the AI sector. This is a market that Nvidia currently dominates, but Su believes AMD can carve out a space for its offerings. She claimed AMD will be able to secure a double-digit share of the sector over the next three to five years. This would translate to an 80% annual increase over that same period, which could generate tens of billions of dollars in revenue.
AMD Stock Movement Today
AMD stock was up 6.18% in pre-market trading on Wednesday, following a 2.65% fall yesterday. The shares have rallied 96.64% year-to-date and 70.51% over the past 12 months. Trading volume is muted at 2.8 million shares, compared to a three-month daily average of 70.18 million units.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 27 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $278.81, representing a potential 17.38% upside for the shares.
