AMD shares rise 6.7% as Amazon eyes $60 billion AI-chip partnership
AMD stock jumped after reporting a 50% revenue increase and a surge in data-center sales, while Amazon announced a potential $60 billion purchase of AI data-center products from Qualcomm.
Advanced Micro Devices (AMD) shares climbed about 6.7% to $509.64 after the company reported a 50% rise in second-quarter revenue to $11.54 billion, driven by data-center sales that more than doubled to $6.7 billion. The data-center segment now accounts for roughly 58% of AMD’s total revenue, underscoring its importance to the firm’s growth strategy.
Separately, Qualcomm disclosed that Amazon could commit up to $60 billion for AI data-center products under a long-term agreement, highlighting the scale of demand for alternative merchant chips beyond Nvidia. Qualcomm aims to reach $15 billion in annual data-center revenue by 2029, about half of AMD’s current annualized run rate.
"Amazon’s potential commitment confirms the scale of the opportunity for non-Nvidia merchant chips," a Qualcomm spokesperson said.
Analysts note that AMD’s market price is trading at a significant premium to its intrinsic value, reflecting investor expectations for continued AI-driven growth.