Catenaa, Wednesday, November 12, 2025- AMD stock rose by over 10% on Wednesday after the chipmaker said that it expects its data center revenue to increase 60% over the next three to five years.
The outlook comes after AMD CEO Lisa Su said the company sees the total addressable market for AI data centers increasing to $1 trillion over the next five years during AMD’s Financial Analyst Day in New York on Tuesday. That number includes everything from GPUs and CPUs to networking equipment.
According to AMD CFO Jean Hu, the company’s overall revenue will jump 35% over the next five years from $34 billion in 2025. The majority of that revenue will come from AMD’s data center business.
Hu projects that AMD’s gross margins will be between 55% and 58% over the next three to five years, while its operating margins will be more than 35% during the same period.
AMD is riding a wave of big data center announcements, including a 6-gigawatt deal with OpenAI and a plan to provide Oracle with 50,000 chips. Both projects kick off in 2026.
The AMD stock was up by over 6% on Wednesday morning. The stock has surged by more than 116% so far this year.
While Su didn’t announce any new deals on Tuesday, she did mention that the company sees opportunities for multiple gigawatt-scale projects using AMD’s MI450 series chips and Helios rack-scale offerings across hyperscalers, AI-native companies, and sovereign AI businesses.
In addition to its next-generation MI450 series chips, AMD says it’s also working on its MI500 series data center processors, though it didn’t provide many details on their capabilities.
Beyond its GPUs, AMD says its data center CPUs are also expected to drive significant growth going forward to capture as much as 50% of the server revenue market share, up from 40% today.
AMD is aiming to do that by stealing increased market share from Intel as that company continues to work through its multiyear turnaround effort.
