Key Points
Advanced Micro Devices (NASDAQ: AMD) is poised for significant growth over the next five years, driven by its data center business and a new generation of gaming consoles from Microsoft (NASDAQ: MSFT) and Sony (NYSE: SONY). AMD projects more than 60% annualized revenue growth for its data center business, aided by deals with companies like OpenAI and Meta Platforms.
AMD’s semi-custom processors, crucial for the PS5 and Xbox Series X/S, contributed to a 51% increase in gaming revenue to $3.9 billion last year. With both console brands set to launch their next-generation models during the 2027 holiday season, AMD anticipates a further boost in sales, following the combined 120 million units sold of current models. The company estimates earnings per share could exceed $20 within five years, potentially doubling its current stock price to $660.
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