AMD CEO Projects 150% Stock Growth Over Five Years Amid Data Center Expansion

AMD CEO Lisa Su has unveiled ambitious growth projections, forecasting a 60% compound annual growth rate for the company's data center business over the next five years. The semiconductor giant expects overall company growth to reach 35% CAGR during the same period.

Despite a 19% pullback in the past month, AMD shares remain up 68.9% year-to-date, presenting what analysts see as a potential buying opportunity. At current levels around $204, the stock could reach $600 within five years based on projected earnings exceeding $20 per share.

Discounted Cash FLOW analysis suggests significant undervaluation, with intrinsic value estimated at $393 per share - a 48% premium to current trading levels. AMD maintains a more diversified revenue mix than competitor Nvidia, with data centers representing 49% of business compared to Nvidia's 88% concentration.

The company's Q3 2025 data center revenue grew 22% year-over-year, a pace expected to accelerate dramatically under the new projections. These forecasts, presented at AMD's Financial Analyst Day, have captured Wall Street's attention as the chipmaker positions itself for substantial expansion.