Advanced Micro Devices is climbing Wednesday as analysts cheer the presentations made the day before at its first Financial Analyst Day since 2022 , including AMD’s latest outlook for earnings and the potential size of the markets it serves. Shares of AMD briefly soared as much as 11% early Wednesday, bucking declines in other key artificial intelligence stocks, including Nvidia , Meta Platforms , Alphabet , Microsoft and Palantir . “Overall, we are very pleased with the presented roadmap, and are optimistic on the company’s outlook,” said Harsh Kumar, senior analyst at Piper Sandler, in a note to clients reiterating his overweight rating on AMD. Trillion dollar market Analysts tie their confidence to two main figures shared by AMD the Tuesday analyst day. First, CEO Linda Su said AMD expects the total addressable market for AI data center parts and systems to hit $1 trillion annually by 2030. That reflects an annual growth rate of 40% and is up from just $200 billion expected this year, Deutsche Bank analyst Ross Seymore said. Several analysts said the increase is partially explained by AMD including central processing units and networking revenue in the business. Still, Seymore said investors can expect the data center unit to ultimately rake in more than $100 billion annually in revenue. “We believe that the growth remains impressive as AMD is well positioned with its diversified and expanding product portfolio to capitalize across the Data Center space,” Seymore told clients. Earnings per share growth AMD forecast earnings per share reaching $20 by 2030, above the previous $15-$18 estimate from Bank of America analyst Vivek Arya, who called AMD “the ‘little’ engine that certainly can” in research report. The earnings target was less surprising for others on Wall Street, but was still viewed positively. “AMD’s new financial model delivered on the $20+ EPS bogey that we and many investors expected,” wrote UBS analyst Timothy Arcuri. He maintained his buy rating on the stock, which has now soared more than 140% in the past six months alone, saying “a rapidly rising tide should continue to lift this boat.” Arcuri expects AMD to continue to rally over the next 12 months if it accomplishes just a fraction of what it laid out at the analyst day. He increased his expectations for 2028 earnings per share by roughly $2 to about $14, given “multi-year confidence” in the company. AMD YTD mountain AMD, year-to-date Wall Street will have to raise its consensus price targets in order for AMD to see anywhere near the gains in the next year as it has in the past 12 months, when the stock jumped more than 80%. The average analyst polled by LSEG rates AMD a buy, but the consensus price target implies further gains of just 5% in the coming year. Wells Fargo analyst Aaron Rakers cited both AMD’s total addressable market and earnings per share guidance in hiking his price target to $345 on Tuesday. That target places him among the most bullish on Wall Street, with upside of more than 45%. Rakers said AMD gave a “compelling, stronger-than-expected financial model framework” at the analyst day.
