Advanced Micro Devices, Inc’s (NASDAQ:AMD) 2025 Financial Analyst Day in New York outlined aggressive growth targets powered by soaring demand for artificial intelligence graphics processing units (GPUs) and Datacenter central processing units (CPUs).
The chip designer impressed Wall Street with ambitious projections of over 35% long-term revenue growth and a $1 trillion AI market opportunity.
- Goldman Sachs analyst James Schneider maintained a Neutral rating on AMD with a price forecast of $210.
- JPMorgan analyst Harlan Sur reiterated a Neutral rating on AMD with a price forecast of $270.
- Bank of America Securities analyst Vivek Arya maintained a Buy rating on AMD with a price forecast of $300.
Also Read: US Taps AMD For Supercomputers That Could Change Energy And Medicine Forever
Goldman Sachs: Schneider rerated following the company's 2025 analyst day. AMD’s upbeat message and long-term financial targets are above Wall Street expectations, driven by Datacenter GPUs and CPUs.
Targets appear achievable, Schneider says. They rely heavily on gross margin and operating leverage and on scaling through key customers. OpenAI, for example, is a major expected revenue driver. While AMD makes strong progress on its Datacenter GPU roadmap and continues to build momentum in CPUs, the stock's upside is limited until there's clearer visibility on the OpenAI-related revenue stream.
Key highlights from the event included AMD's "AI Everywhere" strategy, with plans to expand across Datacenter, Client, and Edge markets and grow its semi-custom solutions for diverse end markets. AMD projected long-term revenue growth above 35%, led by over 60% Datacenter growth and more than 80% CAGR in AI revenue, while targeting gross margins of 55–58%, operating margins above 35%, and EPS around $20—all topping consensus estimates.
Schneider projected fiscal 2025 revenue of $34.04 billion and EPS of $2.80.
AMD also updated its 2030 Datacenter total addressable market (TAM) to ~$1 trillion and reported strong enterprise momentum, including 2 times year-over-year growth in EPYC server consumption and PC platform wins with Dell, HP, Lenovo, and Asus. Schneider highlighted AMD's progress in software, noting a 10 times rise in ROCm downloads and expanded AI developer programs.
Finally, AMD previewed its MI450 AI accelerator, expected in the second half of 2026, which it claims will match Nvidia's Vera Rubin with 50% higher memory capacity and bandwidth.
JMorgan: Sur reiterated confidence in AMD's strong competitive positioning and AI-driven growth potential following the event.
The analyst’s model sees AMD achieving 55–58% gross margins and over 35% operating margins, up from the firm's 2025 estimates of roughly 52% and 22%, respectively—showing clear operating leverage.
Sur expects AMD's Data Center revenue to grow sharply as AI GPUs (MI450/Helios) ramp up and CPU share rises from 40% to over 50% within five years. The analyst sees potential earnings power of $11–$12 by 2027.
Bank of America Securities: Arya said double-digit market share target, AMD could generate over $100 billion in annual data center revenue, up from about $16 billion currently.
The analyst noted that AMD has visibility into new multi-gigawatt AI customer deployments starting with the MI450 generation in the second half of 2026, and flagged the AWS re:Invent event in December as a potential catalyst for announcements. He said AMD expects its core businesses—Client, Gaming, and Embedded—to grow at over 10% CAGR over the next three to five years, driving $25–$30+ in EPS power by 2030.
Arya noted AMD's robust AI roadmap and annual product cadence position it to achieve a 10%+ AI market share in one of the fastest-growing semiconductor segments.
Price Action: AMD stock was trading higher by 10.35% to $262.09 at last check on Wednesday.
Read Next:
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
