Advanced Micro Devices receives cautious outlook despite long-term growth plans

Advanced Micro Devices (AMD, Financials) outlined a long-term growth plan centered on AI and high-performance computing, projecting $100 billion in annual revenue by 2030 and improved profit margins. While many analysts said the roadmap strengthens AMD's competitive position, Seaport's Jay Goldberg remained cautious.

Goldberg said the company's forecast represents only a small share of the trillion-dollar silicon market AMD expects by decade's end. He added that, excluding CPUs, the implied market share for GPUs and AI accelerators appears to be in the mid-single digits. He called early MI500 specifications competitive but noted the industry is in an unusual period marked by heavy spending and shifting demand.

Goldberg also pointed to customer concentration as a concern, saying AMD is relying heavily on one major buyer whose future spending plans remain uncertain. He reiterated a Neutral rating with no price target.

The broader analyst consensus rates the stock a Moderate Buy, with an average target of $281.78 that implies about 26% upside over the next year.