Key Facts
At Citi’s technology conference on September 8, 2023, Advanced Micro Devices (AMD) CFO Jean Hu announced a revised total addressable market projection, estimating it could reach between $2 trillion and $3 trillion by 2030. This marks an increase from the prior estimate of approximately $2 trillion shared during AMD’s Advancing AI event in July.
Following the announcement, AMD shares rose about 6% and continued climbing, with current shares valued around $521. AMD’s market capitalization is approximately $870 billion, and the company reported record second-quarter revenues of $11.5 billion, with data center products contributing 58% of that figure, demonstrating significant year-over-year growth.
To support its current stock price, AMD needs to generate about $35 billion in annual profit, translating to roughly $145 billion in annual revenue by 2030, which would require capturing around 7% of the market, assuming a $2 trillion total addressable market.
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