Advanced Micro Devices (AMD) ripped higher on Wednesday as investors digested brand-new long-term targets and a bigger AI ambition. The message was simple. Management sees a fatter pie for data-center silicon, and it plans to fight harder for a bigger slice.
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AMD Raises Long-Term Targets
Shares jumped about 6% after AMD outlined new three-to-five-year goals and pointed to a potential data-center market worth $1 trillion by 2030. That outlook is well above the company’s prior view that sized a $500 billion opportunity by 2028. The bigger number leans on accelerating demand for AI compute, memory bandwidth, and faster networking.
Investors also got updated thoughts on revenue growth and margins. The through-cycle story centers on AI accelerators, CPUs that complement those accelerators, and the software and systems that tie it all together. The current situation gives bulls a clearer path for model revisions into 2026 and beyond.
Analysts Remain Split on Share Gains
Some on the Street see a familiar situation happening. “We believe AMD’s current AI position versus Nvidia is very analogous to its earlier competition with the previously dominant CPU supplier, Intel, where AMD steadily and methodically chipped away at Intel’s market share through many years of increasingly competitive designs and a consistently aggressive development roadmap,” wrote Benchmark Research analyst Cody Acree. He rates the stock Buy with a $325 target.
Others want more proof. AMD still sits at a single-digit share of AI processors while Nvidia holds at least 80% by most estimates. That gap keeps skeptics cautious on how fast AMD can land and expand with cloud buyers.
Partnerships Build Credibility
Recent wins with OpenAI and Oracle put logos on the slide, which helps when courting the next wave of hyperscalers. Those deals also validate AMD’s roadmap and supply chain readiness for large deployments.
Even so, the latest event stopped short of unveiling a marquee new customer. “AMD’sAMD’sAMD’s well attended event highlighted the progress of AMD’s technology road map and discussed recent partnerships including OpenAI and Oracle but, importantly, did not announce any incremental customer wins,” wrote Oppenheimer’s Rick Schafer, who kept a Perform rating. Multiple analysts continue to flag Amazon as a key swing account to watch.
Cloud Buyers Broaden Supply
Big tech has every incentive to diversify away from a single vendor. That helps AMD’s case as capacity stays tight and pricing remains firm for top-tier accelerators. The company is positioning full platforms, not just chips, to ease adoption and shorten time to deployment.
Execution will matter. Landing one or two additional hyperscalers could push AMD toward a double-digit market share in AI data centers. Without those signatures, the stock will trade on roadmap delivery and yield ramps.
Risks Linger if AI Spend Cools
Bulls argue that elevated AI budgets can lift AMD above its long-term growth target. Citi cautions against straight-line assumptions. “We believe AMD’s revenue growth target of 35% CAGR compoundannualgrowthratecompound annual growth ratecompoundannualgrowthrate could be exceeded driven by increases in AI budget. However, we believe the AI bubble will likely burst within a couple years and could result in much lower estimates,” the firm wrote, keeping a Neutral rating and a $260 target.
For now, the tape says confidence is improving. AMD has the products, a clearer runway, and a bigger market to chase. The next leg up likely hinges on converting pipeline interest into named customers and sustained shipment momentum into 2026.
Is AMD Stock a Good Buy?
Turning to Wall Street, AMD stock has a Moderate Buy consensus rating based on 27 Buys and 10 Holds assigned in the last three months. At $278.41, the average AMD price target implies a 8.5% upside potential.
