What Happened?
Shares of computer processor maker AMD (NASDAQ: AMD) jumped 8.2% in the morning session after investors reacted to a series of highly bullish long-term financial targets and market projections unveiled by CEO Lisa Su at the company's Financial Analyst Day.
The primary driver for the optimism was AMD's aggressive new forecast for the artificial intelligence market. Su stated the company anticipates the total addressable market (TAM) for AI data center parts and systems will reach an enormous $1 trillion by 2030. This is a significant upward revision from AMD's previous forecast of a $500 billion market by 2028.
These ambitious targets were supported by tangible customer traction. Su highlighted long-term, multi-billion dollar deals for its Instinct AI chips with major cloud and AI leaders, including OpenAI.
Finally, Su reassured investors that even as AMD focuses on its AI opportunity, its core businesses, including the successful Epyc CPU division, are also "firing on all cylinders.".
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What Is The Market Telling Us
AMD’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago when the stock gained 6% on the news that the stock's positive momentum continued as cloud company Oracle announced plans to use 50,000 of the company's advanced AI chips and multiple analysts raised their price targets.
Oracle detailed its plans to expand its AI cloud services by using AMD's 'Instinct MI450 Series' graphics processing units (GPUs) starting in the third quarter of the next year. Adding to the positive sentiment, several analysts expressed increased confidence in the stock. Wedbush maintained an 'Outperform' rating and increased its price target from $190 to $270. Similarly, HSBC maintained a 'Buy' rating and lifted its price target to a Street-high of $310. These actions followed other recent positive updates, including an upgrade from Wolfe Research and a price target increase from Mizuho. Broader strength in the semiconductor sector also provided a lift, as chip equipment maker ASML reported better-than-expected income.
AMD is up 116% since the beginning of the year, and at $260.54 per share, it is trading close to its 52-week high of $264.33 from October 2025. Investors who bought $1,000 worth of AMD’s shares 5 years ago would now be looking at an investment worth $3,184.
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