AMD provides long-term growth targets at financial analyst day

AMD (AMD) detailed a long-term financial model based on its strategic financial priorities. The company outlined the following growth targets for the next three to five years. At the company level, AMD expects to drive a greater than 35% revenue compound annual growth rate, a non-GAAP operating margin greater than 35%, and non-GAAP earnings per share exceeding $20. Based on its leadership product portfolio, AMD expects to deliver a greater than 60% revenue CAGR for its data center business and greater than 10% revenue CAGR across its Embedded and Client and Gaming businesses. As AMD extends its multi-generational AMD EPYC CPU portfolio, it is positioned to lead the server market and expects to achieve more than 50% server CPU revenue market share. In data center AI, AMD aims to drive revenue CAGR of more than 80%, powered by strong customer momentum and next-generation AMD Instinct products and systems. Across Client and Gaming, AMD continues to strengthen its leadership with expanding enterprise adoption and a growing portfolio of AMD Ryzen processors. The company expects to exceed 40% client revenue market share while building on a base of more than one billion AMD-based gaming devices and three generations of leadership consoles. AMD is also extending its leadership in adaptive computing, expects to exceed 70% revenue market share and plans to expand its Embedded segment opportunities to include growth from embedded x86 and semi-custom silicon markets. “AMD is entering a new era of growth fueled by our leadership technology roadmaps and accelerating AI momentum,” said Dr. Lisa Su, AMD chair and CEO. “With the broadest portfolio of products and our deepening strategic partnerships, AMD is uniquely positioned to lead the next generation of high-performance and AI computing. We see a tremendous opportunity ahead to deliver sustainable, industry-leading growth. We have never been better positioned.”