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AMD Shares Jump After Company Sets $100 Billion Data Center Revenue Target

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Advanced Micro Devices (AMD) saw its shares climb nearly 5% in premarket trading on Wednesday after the company unveiled ambitious long-term growth goals, including a plan to reach $100 billion in annual data center revenue within five years by taking a larger share of the booming AI chip market from rival Nvidia.

Speaking at an investor event in New York, CEO Lisa Su said AMD expects the market for data center chips to expand to $1 trillion by 2030, driven by AI adoption and stronger software integration.

To capitalize on that opportunity, AMD is preparing to roll out its next-generation MI400 chips and the Helios rack system in 2026. These products are part of the company’s broader strategy to compete more aggressively in AI computing, an area dominated by Nvidia.

“AMD’s success will come from being better than NVIDIA on whatever metrics matter most to customers,” analysts at Morgan Stanley said, adding that factors like power efficiency, component availability, and performance will determine leadership in what they called a “winner-takes-most” market.

At the event, AMD projected 35% annual growth for its overall business and 60% annual growth in its data center segment over the next three to five years. Chief Financial Officer Jean Hu said the company also aims for earnings of $20 per share within that timeframe, compared to LSEG’s 2025 estimate of $2.68 per share.

While analysts praised AMD’s bold targets, some cautioned about execution challenges, potential AI spending slowdowns, and supply chain constraints.

AMD shares have already gained 97% this year and are up 16% since October 6, when the company announced a partnership with OpenAI.

Foxconn Sees AI Boom Driving 2026 Growth, Hints at OpenAI Collaboration

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Foxconn, the world’s largest contract electronics manufacturer and key supplier to Apple and Nvidia, projected strong growth from artificial intelligence (AI) demand heading into 2026 — and teased a major announcement with OpenAI next week.

Chairman Young Liu told investors on Wednesday that the AI industry was only in its early stages and would soon become a central driver of global technology growth.
“Judging from what we see now, I am very optimistic about the AI market next year,” Liu said during the company’s quarterly earnings call. “The development of AI is still just beginning.”

Foxconn’s cloud and networking division, which includes AI server manufacturing, has now surpassed its consumer electronics segment — which includes iPhones — for the second consecutive quarter.

The company expects significant year-on-year revenue growth in the fourth quarter, with AI server sales continuing to rise quarter-on-quarter. Third-quarter profit jumped 17% to T$57.67 billion ($1.89 billion), beating analyst expectations.

Liu also hinted at an OpenAI-related announcement to be revealed during Foxconn’s annual Tech Day in Taipei next week, but declined to provide further details. OpenAI has not yet commented on the matter.

Foxconn — formally known as Hon Hai Precision Industry — has benefited from a global data center expansion led by Amazon, Microsoft, and Google, as they ramp up investments in AI infrastructure.

Beyond AI, Foxconn continues to invest in electric vehicles (EVs), despite recent challenges in its EV manufacturing ventures in the U.S.

So far this year, Foxconn’s shares have risen 36%, outperforming Taiwan’s broader market index, which is up 21%.

Tower Semiconductor Raises Forecasts on AI and Data Center Demand Surge

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Tower Semiconductor, the Israeli-based contract chipmaker, forecast fourth-quarter revenue above market expectations, driven by booming demand for chips used in data centers and AI infrastructure. The announcement sent the company’s U.S.-listed shares up 15%, reaching their highest level in over two decades after a 63% surge this year.

The company said it expects revenue of around $440 million, plus or minus 5%, surpassing analysts’ estimates of $434.4 million, according to LSEG data.

CEO Russell Ellwanger attributed the growth to strong demand for Tower’s analog and mixed-signal semiconductors, which are widely used in automotive, industrial, and communications technologies. He added that the company’s Silicon-Germanium and Silicon Photonics technologies — essential for high-speed optical data transmission — are key growth drivers as global data center expansion accelerates.

Tower also announced an additional $300 million investment to expand its manufacturing capacity and advance next-generation chip capabilities across Israel, the United States, Italy, and Japan.

For the third quarter ended September 30, Tower reported revenue of $395.7 million, slightly above forecasts, and adjusted earnings of 55 cents per share, topping estimates of 54 cents.

The results highlight the semiconductor industry’s ongoing shift toward AI-driven infrastructure, where specialized chips for data transmission and network performance are becoming vital to global tech ecosystems.