AMD Targets $120 Billion Server-CPU Market as Analysts Push Price Targets Above $500

AMD CEO Lisa Su revises server market outlook to $120B by 2030, fueled by CPU demand in AI. Data center revenue surges 57% to $5.8B, stock near all-time high amid analyst upgrades.

Advanced Micro Devices is betting big on a future where conventional processors remain the backbone of artificial intelligence infrastructure. During the chipmaker’s annual shareholder meeting, CEO Lisa Su unveiled a dramatically revised market outlook: the server-processor segment is now expected to reach $120 billion by 2030, nearly double earlier projections. The revision reflects a fundamental shift in how AI workloads are built, with growing demand for CPUs to handle data movement and orchestration alongside specialized accelerators.

Wall Street has taken notice. Mizuho raised its price target on AMD to $515, while Bank of America followed with a $500 target, both maintaining buy ratings. The optimism centers squarely on the data-center business, where AMD’s EPYC processors and Instinct graphics chips are capturing a wave of spending on next-generation AI infrastructure. The stock currently trades at around €384, having doubled since the start of the year and gaining 264% over the past twelve months — just a hair below its all-time high.

The foundation for that rally was laid in the first quarter. Revenue climbed 38% to $10.25 billion, and adjusted earnings per share came in at $1.37, topping analyst estimates. The data-center segment was the star, generating $5.8 billion — up 57% from a year ago — and now accounts for more than half of total company revenue. For the current quarter, management expects sales to reach roughly $11.2 billion, signaling continued momentum.

Yet not everyone inside the company is holding tight. Chief strategy officer Paul Darren Grasby recently sold nearly $11 million worth of shares, though he retains a substantial stake. Shareholders themselves backed all management proposals at the annual meeting, including the appointment of Ernst & Young as auditor and an expansion of the equity compensation program by 65 million shares. The one notable departure: director Jon Olson did not stand for re-election and has left the board.

Looking ahead, AMD is preparing to launch its next-generation MI450 accelerators, which could draw significant orders from major cloud providers. An upcoming analyst day is expected to offer more details on the product roadmap. Su has set an ambitious long-term target of annual revenue growth exceeding 35%, but the company must navigate a tightrope of risks: heavy reliance on contract manufacturer TSMC, potential export restrictions, and constrained capacity for high-bandwidth memory chips. These factors will ultimately determine how much of that forecast $120 billion market ends up on AMD’s books.