AMD's ambitious AI goals send stock soaring
AMD's stock jumped nearly 5% in premarket trading on Wednesday, a day after CEO Lisa Su laid out some big goals: she wants AMD to grab a double-digit share of the AI chip market and hit $100 billion in annual data center revenue within five years.
She's also aiming for 35% overall revenue growth per year over the next three-to-five years, with data center business expected to grow by 60% annually.
AMD's AI chip strategy
AMD is gearing up to challenge NVIDIA's dominance in AI chips with its upcoming MI400 lineup and Helios rack system, both set for a 2026 launch.
The company just inked a deal with OpenAI signed on October 6; no details provided about start date or equity stake.
It's an ambitious move, but AMD faces tough competition from NVIDIA's massive developer community and established tech ecosystem.
The road ahead for AMD
While AMD expects earnings to surge to $20 per share over five years, it'll have to overcome supply challenges and convince customers to switch from NVIDIA.
Meanwhile, NVIDIA isn't standing still—their shares are up too as this rivalry heats up.