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AMD’s Growth Projections and Market Position
Advanced Micro Devices (NASDAQ: AMD) projects a 60% compound annual growth rate (CAGR) for its data center business over the next five years, which currently makes up 49% of its total revenue. In Q3 2025, AMD’s data center revenue increased by 22% year over year. The company anticipates overall revenue growth at a CAGR of 35%, with non-GAAP earnings per share expected to exceed $20.
While AMD’s data center revenue is significantly lower than Nvidia’s, where 88% of revenue comes from data centers, it offers a more balanced revenue structure. AMD’s client and gaming segment constitutes 44% of revenue, and embedded processors account for 9%. This diversified approach may mitigate the risks associated with potential slowdowns in AI spending, impacting both companies differently.
If AMD’s valuation reaches 30 times its earnings, its stock could rise to $600 per share from its current price of about $250, indicating a potential growth of nearly 150% over the next five years.
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