Investors responded to the optimism by pushing the stock to $508.08, extending a rally that has seen the company's valuation more than double over the past year. Hu attributed the aggressive forecast to surging demand for CPUs, GPUs, and AI-optimized PCs. The company expects its data center segment to double in scale next year, bolstered by a new GPU launch scheduled for the current quarter.
In section Market Quotes
AMD Stock Climbs as CFO Raises 2030 Market Forecast to $3 Trillion
A bold revision of long-term growth projections propelled AMD shares 6% higher on Tuesday, as Chief Financial Officer Jean Hu signaled that the company’s total addressable market could reach $3 trillion by 2030. The updated outlook significantly eclipses the $2 trillion estimate provided by the chipmaker just months ago in July.
Beyond hardware releases, AMD has successfully navigated supply chain bottlenecks in the CPU market. This increased availability is projected to drive an 80% expansion in business performance during the second half of this year compared to the same period in 2023. Hu characterized the current environment as the early phase of a massive AI investment cycle, suggesting that sustained demand for high-performance computing will remain a long-term catalyst for the firm.
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