AMD Stock Soars After Company Claims Its Data Center Revenue Will Jump 60%

AMD says it expects its data center revenue to increase 60% over the next three to five years — up from $16 billion in 2025 — as the company pushes deeper into the AI market and seeks to steal share from rival Nvidia, Daniel Howley reported for Yahoo Finance.

The company’s overall revenue is expected to rise 35% over the next five years from $34 billion in 2025. (Photo: AMD Facebook) 

Shares surged more than 8% in early trading Wednesday following the news. The outlook comes after AMD CEO Lisa Su said during the company’s Financial Analyst Day in New York that the total addressable market for AI data centers could grow to $1 trillion over the next five years, covering GPUs, CPUs, and networking equipment.

According to AMD CFO Jean Hu, the company’s overall revenue is expected to rise 35% over the next five years from $34 billion in 2025, with most of the growth coming from its data center business.

Hu projects that AMD’s gross margins will range between 55% and 58%, while operating margins will exceed 35% over the same period.