Sat Nov 22 09:20:00 UTC 2025: ## AMD Surges on Data Center Demand, Eyes $1 Trillion Market by 2030

Sunnyvale, CA – Advanced Micro Devices (AMD) is riding high on robust data center growth, fueled by strong demand for its EPYC processors and Instinct MI350 series GPUs. The company’s third-quarter 2025 data center revenue reached $4.34 billion, a 22.3% year-over-year increase, now accounting for 47% of AMD’s total revenue. Sequentially, revenue climbed a significant 34%.

The surge is attributed to the growing adoption of fifth-gen EPYC processors, with hyperscalers like Google, Microsoft Azure, and Alibaba launching over 160 EPYC-powered instances in the quarter. Currently, over 1,350 public EPYC cloud instances are available globally, a 50% year-over-year increase.

AMD is expanding its reach through key partnerships with major players including OpenAI, HPE, Dell Technologies, Lenovo, Super Micro, Amazon Web Services (AWS), Oracle, Cisco Systems, IBM, Cohere, Vultr, and DigitalOcean. This collaborative ecosystem is driving further adoption of AMD’s technologies. Notably, AMD’s Helios design is supporting Meta Platforms’ new Open Rack Wide specification, and AWS recently launched Amazon EC2 M8a instances using 5th Gen EPYC CPUs, boasting a 30% performance increase over the previous generation.

Looking ahead, AMD is optimistic about the data center market, projecting it to reach a staggering $1 trillion by 2030, representing a CAGR of over 40% from the estimated $200 billion in 2025. The company also expects its data center AI revenues to grow at a CAGR of over 80% over the next 3-5 years, driven by strong demand for its Instinct GPUs (MI450 Series and Helios rack-scale solutions) and an expanding customer base.

AMD forecasts double-digit growth for data center revenue both year-over-year and sequentially in the fourth quarter of 2025. Overall, AMD expects data center business revenues to grow at a CAGR of over 60% and total revenues to grow by over 35% over the next 3-5 years.

The company anticipates fourth-quarter 2025 revenues of $9.6 billion (+/-$300 million), indicating a year-over-year growth of approximately 25% and sequential growth of approximately 4%.

While AMD enjoys strong growth, it faces stiff competition from NVIDIA and Broadcom in the data center space. NVIDIA is a dominant force in AI computing, and Broadcom is benefiting from the demand for its networking products and custom AI accelerators.

Despite being considered overvalued with a forward 12-month price/sales of 8.04X compared to the sector’s 6.61X, AMD shares have jumped nearly 50% in the last 12 months, outperforming the broader Zacks Computer and Technology sector. Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $1.31 per share, suggesting 20.18% year-over-year growth. AMD currently carries a Zacks Rank #3 (Hold).

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