AMD CEO Lisa Su said the demand for AI is “insatiable.” Chipmaker shares are on the rise

Advanced Micro Devices shares are getting a boost from their outlook.

The stock rose nearly 10% in early trading Wednesday, leading the S&P 500 to gains after the chipmaker yesterday unveiled ambitious new targets on its first day of analysis. (Read our daily coverage of the markets here.) Chip stocks were also broadly higher, with the SOX index of semiconductor stocks up 1.5%.

CEO Lisa Su on Tuesday told analysts that the company is seeing “insatiable” demand for artificial intelligence, suggesting its revenue growth could rise to 35% annually over the next three to five years, with gross margin in the range of 55% to 58%. AMD (AMD) said last week that its third-quarter adjusted gross margin was 54%.

AMD said it now believes the total addressable AI market could exceed $1 trillion by 2030, compared to a previous target of $500 billion by 2028.

Several Wall Street analysts said they remained bullish on the chipmaker’s shares after the event, though they declined to raise their price targets amid lingering concerns about an AI bubble and the possibility that AMD’s bullish momentum could reverse course if it bursts.

Citi analysts, who maintained a Neutral rating on the stock, said they believe AMD’s targets “are likely to be maintained or exceeded until the AI ​​bubble bursts but our conversations with investors suggest that much of it is already in place.”

“We believe the AI ​​bubble will likely burst within two years, and may result in much lower estimates,” they wrote.

AMD shares have nearly doubled in value in 2025 so far, with most of those gains coming in the past few months after a series of big AI deals, including one with OpenAI, the maker of ChatGPT.