AMD outlines plan targeting over 35% revenue growth and $20 EPS

Advanced Micro Devices (NASDAQ: AMD) presented its long-term financial targets at its Financial Analyst Day, projecting a compound annual growth rate exceeding 35% for company-wide revenue over the next three to five years. The semiconductor company also set targets for non-GAAP operating margin above 35% and non-GAAP earnings per share exceeding $20.

The data center business is expected to drive the highest growth, with AMD targeting revenue CAGR greater than 60%. Within data center AI specifically, the company aims for revenue CAGR exceeding 80%. AMD projects its data center AI revenue will benefit from its Instinct MI350 Series GPUs and upcoming MI450 Series GPUs launching in third quarter 2026.

For market share objectives, AMD expects to achieve more than 50% server CPU revenue market share and exceed 40% client revenue market share. The embedded segment is targeted to exceed 70% revenue market share.

AMD announced its Instinct MI350 Series GPUs are deployed at Oracle Cloud Infrastructure and other cloud providers. The company reported ROCm software downloads increased 10x year-over-year, though specific download numbers were not disclosed.

The client processor portfolio expanded 2.5x since 2024, with AMD Ryzen processors powering more than 250 platforms. AMD stated it has secured over $50 billion in design wins since 2022 across its embedded and adaptive portfolio.

"AMD is entering a new era of growth fueled by our leadership technology roadmaps and accelerating AI momentum," said CEO Lisa Su.

The financial projections represent forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from expectations, according to the company's cautionary statement.

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