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Key Points from AMD’s Analyst Day
At its first analyst day in three years, Advanced Micro Devices (NASDAQ: AMD) projected that its total addressable market, encompassing GPUs, CPUs, memory, and networking components, will reach $1 trillion by 2030. The company estimates it can capture over 10% of the AI data center chip market and sees revenue expanding at a compound annual growth rate (CAGR) of over 35%, targeting $150 billion by 2030.
AMD forecasts its data center segment will grow at a 60% CAGR, aiming for over 50% market share in the data center CPU market. The AI data center revenue is expected to grow at an even higher rate of 80% CAGR, with anticipated adjusted earnings per share exceeding $20 in the coming years, up from approximately $4 expected this year.
The company acknowledges risks in achieving these targets, particularly from competitors developing custom AI chips. The ongoing pace of AI infrastructure spending is also uncertain, which could impact AMD’s projected growth.
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