AMD’s Data Center Dominance: 60% Revenue Surge Projected by 2030

AMD just dropped a bombshell for investors—its data center business is poised to explode. The chipmaker forecasts a staggering 60% revenue leap in this sector within five years, signaling an aggressive pivot toward AI and cloud infrastructure.

Wall Street's reaction? Typical skepticism mixed with dollar signs in their eyes. Analysts whisper 'overpromising' while simultaneously upgrading price targets—because nothing fuels hype like contradictory impulses in high finance.

The real story here isn't just silicon. It's AMD's audacious bid to carve out territory from Nvidia's AI empire. Those data center GPUs aren't just chips—they're golden shovels in the AI gold rush.

One hedge fund manager quipped: 'They'll either hit 60% or invent creative accounting to get there.' Meanwhile, crypto miners are already eyeing the specs for unintended uses—some habits die hard.

TLDR

• AMD expects data center revenue to grow 60% over the next three to five years, up from $16 billion in 2025
• The company projects overall revenue will increase 35% over five years from $34 billion in 2025
• AMD secured major deals with OpenAI (6-gigawatt) and Oracle (50,000 chips), both starting in 2026
• CEO Lisa Su estimates the total addressable market for AI data centers will reach $1 trillion in five years
• AMD stock is up 96% year to date, outperforming Nvidia’s 43% gain in the same period

AMD laid out its growth plans at Financial Analyst Day in New York on Tuesday. The chipmaker expects data center revenue to climb 60% over the next three to five years.

Advanced Micro Devices, Inc., AMD

The company’s data center business brought in $16 billion in 2025. That figure will FORM the baseline for the projected increase.

CEO Lisa Su told analysts the total addressable market for AI data centers will hit $1 trillion over five years. This market includes GPUs, CPUs, and networking equipment.

CFO Jean Hu shared broader financial targets during the event. AMD expects overall revenue to jump 35% over the next five years from $34 billion in 2025.

The data center segment will drive most of that growth. Hu also projected gross margins between 55% and 58% over the period.

Operating margins should exceed 35% during the same timeframe. These projections show AMD’s confidence in capturing market share from competitors.

Major Customer Wins Fuel Growth Plans

AMD recently announced two large-scale customer agreements. The company signed a 6-gigawatt deal with OpenAI set to begin in 2026.

Oracle also committed to purchasing 50,000 AMD chips. That deal will also kick off next year.

Su mentioned opportunities for more gigawatt-scale projects on Tuesday. These potential deals WOULD use AMD’s MI450 series chips and Helios rack-scale offerings.

The company sees demand across hyperscalers, AI-native companies, and sovereign AI businesses. However, Su didn’t announce any new partnerships during the analyst event.

Analysts have raised concerns about power requirements for AI data centers. Questions also emerged about whether customers like OpenAI can afford large GPU purchases.

Su pushed back on the skepticism. “This is a very unique moment in AI, and we shouldn’t be shortsighted,” she said.

Product Pipeline and Market Share Goals

AMD is developing its MI500 series data center processors. The company provided few details about these next-generation chips.

The current MI450 series will serve as the foundation for near-term growth. AMD’s data center CPU business also factors into the revenue projections.

The company wants to capture 50% of server revenue market share. That’s up from 40% today.

AMD expects more than 10% revenue growth in its client market over five years. This segment includes gaming and PC chip sales.

The company plans to take market share from Intel. Intel is currently working through a multi-year turnaround effort.

AMD stock has risen 96% year to date. The shares are up 61% over the past 12 months.

Nvidia stock gained 43% year to date and 32% over 12 months. AMD’s stock performance has outpaced its main rival in the GPU market during these periods.