06:18 AM EST, 11/12/2025 (MT Newswires) -- Advanced Micro Devices ( AMD ) shares rose early Wednesday after the chipmaker set long-term financial targets, including robust revenue and earnings growth, fueled by its data center and client and gaming businesses.

For the next three to five years, the company estimates revenue to increase by 35% at a compound annual growth rate and per-share adjusted earnings to exceed $20, it said late Tuesday at its financial analyst day. The group also projects its adjusted operating margin to be higher than 35% for the same period.

"We see a tremendous opportunity ahead to deliver sustainable, industry-leading growth," Chief Executive Lisa Su said in the statement. "We have never been better positioned."

AMD's stock gained more than 5% in the most recent premarket activity. The shares have surged 97% so far this year.

The technology giant anticipates delivering a compound annual growth rate of more than 60% for its data center business and revenue growth of above 80% in data center artificial intelligence, driven by customer demand and its AMD Instinct products and systems. The firm estimates the data center total addressable market to reach by $1 trillion by 2030 from $200 billion this year, according to a presentation.

Across the embedded and client and gaming segments, the compound annual growth rate is pegged at greater than 10%.

The company also forecasts to achieve more than 50% revenue market share for server central processing units, as it extends its EPYC processor portfolio. For client and gaming, the chipmaker expects to surpass 40% client revenue market share and expand its Ryzen processor portfolio. AMD also anticipates to exceed 70% revenue market share in adaptive computing and aims to expand its embedded segment.

AMD appears to be "clearly confident" in its ability to meet or top its financial targets, especially with expectations that corporate gross margins will expand from here on in, Wedbush Securities said in a Tuesday client note. However, the brokerage noted it has no further insight into the company's capacity to achieve its timelines and objectives.

"With both (Nvidia's) and AMD's efforts to date having suggested missteps are possible given the pace of desired advances, we are reluctant to become more aggressive with our estimates without further inputs into how AMD's efforts are progressing," Wedbush analyst Matt Bryson wrote in the note.

The brokerage reiterated its outperform rating on AMD's stock and maintained the 12-month price target of $290.