$AMD to Reach Financial Targets Two Years Earlier


Bernstein’s Stacy Rasgon, previously skeptical on $AMD, now expects AMD to reach around $20 in EPS by 2028, which was originally AMD’s 2030 target
The main reason is not GPUs, but server CPUs, where AMD continues taking share from Intel while the server CPU TAM has expanded significantly
The key points:
AMD’s Data Center segment is now the main growth engine, with strong revenue growth, expanding server CPU share, and Lisa Su raising the long-term server CPU market opportunity from $60B to $120B
The GPU story is more complicated. Rasgon sees AMD improving from a marginal AI GPU player to a more relevant one, potentially reaching 10–11% share, but NVIDIA still dominates through CUDA
The conclusion is that AMD’s CPU business alone is now strong enough to support a much bigger earnings path, while GPUs are additional upside if AMD can close the software and ecosystem gap with NVIDIA
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