Key TakeawaysAdvanced Micro Devices shares climbed up to 6.7%, reaching $509.84 on Tuesday following CFO Jean Hu’s announcement of a $2 trillion addressable market forecast by decade’s end.During her presentation at the Citi Global TMT Conference, Hu emphasized artificial intelligence demand as the primary catalyst for sustained expansion.The company’s data center business is anticipated to experience approximately 100% growth in 2027, hitting roughly $70 billion in revenue.Investment firm CLSA upgraded AMD’s price objective from $575 to $710, simultaneously boosting earnings per share projections by 25%-29% for fiscal years 2027 and 2028.The semiconductor company currently enjoys 41 buy ratings from analysts with no sell recommendations on record.Advanced Micro Devices stock climbed as high as 6.7% during Tuesday’s session, reaching $509.84, then extended gains Wednesday morning to $523.16, representing approximately 3.4% daily growth.Advanced Micro Devices, Inc., AMDThe rally followed CFO Jean Hu’s presentation at the Citi Global Technology, Media and Telecommunications Conference, where she unveiled an aggressive artificial intelligence expansion strategy.According to Hu, AMD’s accessible market opportunity could expand to $2 trillion by the end of the decade, propelled predominantly by AI-related demand. This projection significantly exceeded previous forecasts and immediately resonated with investors.“It’s really about AI and we do believe this is the most consequential technology transformation,” Hu said at the conference.The CFO elaborated that AMD’s data center division is positioned to approximately double by 2027, generating approximately $70 billion in revenue. AI-focused GPUs are expected to represent roughly $40 billion of that total, with server CPU products comprising the remaining portion.Regarding the CPU segment, Hu noted that supply capacity has been expanding and projected that CPU revenue will surge more than 80% in the year’s second half compared to the prior year period. She anticipates this momentum will continue throughout the following year.“This AI super investment cycle is at the very beginning, and over time, we’re going to continue to see strong demand for AMD’s product,” Hu said.Wall Street Analysts Boost TargetsCLSA responded promptly, elevating its AMD price objective to $710 from the previous $575 while maintaining its Outperform designation. The brokerage increased its fiscal 2027 and 2028 earnings per share forecasts by 25% to 29%, reflecting expectations for higher MI-455 GPU shipment volumes at premium pricing levels.The overall analyst sentiment remains overwhelmingly positive. Current Wall Street consensus includes 41 buy ratings for AMD with zero sell opinions.Derivatives markets reflected bullish sentiment as well, with call option buyers in AMD’s short-dated contracts recording substantial profits during the session.Semiconductor Stock Outshines Broader Market WeaknessAMD’s performance stands out even more considering the challenging market environment. During Tuesday’s trading, the S&P 500 decreased 0.4%, the Nasdaq slipped 0.1%, and the Dow Jones Industrial Average fell 0.8%.The semiconductor sector saw widespread strength. Arm Holdings advanced 5.8% while Intel posted a 10% gain on Tuesday. Micron and Nvidia also registered increases on Wednesday, signaling broader investor appetite for chip manufacturers with established AI revenue streams.AMD reached an intraday peak of $524.29 on Wednesday, climbing from the previous closing price of $505.74. The shares continue trading below their 52-week peak of $584.73.The post Advanced Micro Devices (AMD) Stock Surges 7% on $2T AI Market Forecast appeared first on Blockonomi.