AMD shares climb as investors cheer long-term growth targets

(Reuters) -AMD shares roseate astir 5% successful premarket trading connected Wednesday, a time aft it laid retired ambitious plans to ​reach $100 cardinal successful yearly information halfway gross successful 5 years by taking a ‌bigger portion of the AI marketplace from Nvidia.

CEO Lisa Su said connected Tuesday the marketplace for the company'‌s information halfway chips is expected to turn to $1 trillion by 2030, betting connected AI-driven maturation and a deeper bundle push.

With the bullish targets, AMD is looking to situation Nvidia successful AI computing done its next-generation MI400 chips and the Helios rack strategy ⁠due successful 2026.

Nvidia, however,‌ holds a commanding pb successful the AI spot market, with acold greater marketplace stock and ecosystem dominance, making AMD's situation ‍an uphill battle. Nvidia's shares were up astir 1.5% successful premarket trading.

"AMD's occurrence volition travel from being amended than NVIDIA connected immoderate metrics substance astir to the customers,​" Morgan Stanley analysts said.

"Those parameters whitethorn alteration implicit time, arsenic ‌bottlenecks specified arsenic space, powerfulness and constituent availability each plays a part, but mostly we spot this arsenic a "winner takes most" market, wherever the champion ROI conscionable wins."

In the adjacent 3 to 5 years, AMD expects 35% maturation successful its full concern each twelvemonth and 60% successful its information halfway business, ⁠finance main Jean Hu said astatine the expert time ​- its archetypal specified lawsuit successful 3 years ​- held successful New York.

The institution besides expects net to emergence to $20 a stock successful the aforesaid 3 to 5 years. LSEG ‍estimates peg AMD's 2025 ⁠profit astatine $2.68 per share.

While analysts mostly welcomed the stellar maturation targets, immoderate warned astir execution risks and concerns astir sustainability of AI infrastructure spending and ⁠supply concatenation constraints.

AMD shares person gained astir 97% this twelvemonth and are up 16% since October ‌6, erstwhile the institution signed a woody with OpenAI.

(Reporting ‌by Rashika Singh and Siddarth S successful Bengaluru)