AMD Aims To Lead The $1 Trillion Compute Market With Bold Growth Plans

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(RTTNews) - At its Financial Analyst Day, AMD unveiled an ambitious long-term strategy aimed at accelerating growth and solidifying its leadership in data center and AI technologies. The company targets a compound annual revenue growth rate (CAGR) of over 35%, a non-GAAP operating margin above 35%, and non-GAAP earnings per share exceeding $20 over the next three to five years.

AMD's data center business is expected to be a major growth engine, with a projected revenue CAGR of more than 60%. Meanwhile, its Embedded, Client, and Gaming segments are forecast to grow at a rate exceeding 10%, supported by a robust product portfolio.

With continued expansion of its AMD EPYC CPU lineup, AMD is positioning itself to lead the server market and aims to capture over 50% of server CPU revenue share. In the data center AI space, the company targets an impressive revenue CAGR of more than 80%, driven by strong customer demand and next-generation AMD Instinct products.

In the Client and Gaming segments, AMD is building momentum through increased enterprise adoption and a growing lineup of AMD Ryzen processors. The company expects to surpass 40% client revenue market share, leveraging a foundation of over one billion AMD-powered gaming devices and three generations of leading gaming consoles.

AMD is also advancing its position in adaptive computing, aiming to exceed 70% revenue market share. The company plans to expand its Embedded segment by tapping into opportunities in embedded x86 and semi-custom silicon markets, further diversifying its growth avenues.