TLDR
- AMD stock jumped as much as 6.7% to $509.84 on Tuesday after CFO Jean Hu outlined a $2 trillion total addressable market by 2030.
- Hu spoke at the Citi Global TMT Conference, pointing to AI demand as the key driver of long-term growth.
- AMD’s data center segment is projected to roughly double in 2027 to around $70 billion.
- CLSA raised its AMD price target to $710 from $575, lifting EPS estimates by 25%-29% for 2027 and 2028.
- Wall Street holds 41 buy ratings on AMD with zero sell recommendations.
Advanced Micro Devices stock rose as much as 6.7% on Tuesday, hitting $509.84, before continuing higher Wednesday morning to $523.16, up around 3.4% on the day.
Advanced Micro Devices, Inc., AMD
The move came after CFO Jean Hu took the stage at the Citi Global Technology, Media and Telecommunications Conference and laid out an ambitious AI growth roadmap.
Hu said AMD’s total addressable market could reach $2 trillion by 2030, driven almost entirely by AI demand. That figure was well above prior estimates and caught the market’s attention quickly.
“It’s really about AI and we do believe this is the most consequential technology transformation,” Hu said at the conference.
She added that AMD’s data center segment is expected to roughly double in 2027, reaching around $70 billion. AI GPUs are projected to account for around $40 billion of that figure, with server CPUs making up the rest.
On the CPU side, Hu said supply has been increasing and that the CPU business will grow more than 80% in the second half of this year compared to last year. She expects that growth to carry into next year as well.
“This AI super investment cycle is at the very beginning, and over time, we’re going to continue to see strong demand for AMD’s product,” Hu said.
Analyst Upgrades Fuel the Move
CLSA moved quickly, raising its AMD price target to $710 from $575 while keeping an Outperform rating. The firm bumped its fiscal 2027 and 2028 EPS estimates by 25% to 29%, citing expectations that AMD will ship more MI-455 GPUs at higher prices than previously modeled.
The broader analyst picture is constructive. Wall Street currently carries 41 buy ratings on AMD and zero sell recommendations.
Options markets also showed bullish activity, with a call buyer in AMD’s weekly contracts seeing outsized gains on the day.
AMD Outperforms a Weak Tape
AMD’s gains are particularly striking given the backdrop. On Tuesday, the S&P 500 fell 0.4%, the Nasdaq declined 0.1%, and the Dow dropped 0.8%.
AMD was not the only chip name moving. Arm Holdings rose 5.8% and Intel gained 10% on Tuesday. Micron and Nvidia were also higher on Wednesday, reflecting a broader rotation into semiconductors with clear AI revenue paths.
AMD hit a session high of $524.29 on Wednesday, up from a prior close of $505.74. The stock remains below its 52-week high of $584.73.
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