AMD rises 3% after CFO projects $3T AI market

Advanced Micro Devices shares climbed 3% Wednesday after Chief Financial Officer Jean Hu projected a $3 trillion AI-related total addressable market by 2030 and forecast roughly $70 billion in data-center revenue for 2027, about double current levels.

Hu outlined a 2027 data-center split in which AI GPUs would account for roughly the low-$40 billion portion of the estimate, with server CPUs and system-level AI products making up the remainder. Management highlighted continued expansion driven by next-generation AI processors and rack-scale systems.

Analysts adjusted forecasts and targets after the presentation. CLSA raised its AMD price target to $710 from $575 and increased fiscal 2027 and 2028 earnings-per-share estimates by about 25% to 29%, reflecting expectations of higher MI-455 GPU shipments and average selling prices. Raymond James analyst Simon Leopold reported supply-chain checks that supported AMD’s product timing, noting the MI450 AI processor remains primarily a fourth-quarter 2026 opportunity and that there was no evidence of material acceleration into earlier periods.

Leopold wrote, “We came away incrementally constructive on AMD’s CPU opportunity,” and added that suppliers were qualifying components specifically for AMD AI platforms.

Bank of America data for August showed AMD was held by 51% of funds and that semiconductor exposure among active U.S. fund managers rose to 1.15 times the benchmark from 1.08 in May. The bank reported that Nvidia and Broadcom had the broadest ownership, while AMD and Micron recorded notable increases.

Analyst Vivek Arya reported relative-weight ownership levels of about 74% for compute, 43% for memory and 40% for equipment, and that AMD’s ownership rose 7% month over month and 75% quarter over quarter on a relative-weight basis.

Wall Street coverage remained largely positive, with 41 buy ratings and no sell recommendations. Management’s outlook focuses on data-center expansion and the rollout of MI450 and MI-455 GPUs, and market participants are watching supply-chain signals and supplier qualification for signs of shipment timing.