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AMD Shares Jump After Company Sets $100 Billion Data Center Revenue Target

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Advanced Micro Devices (AMD) saw its shares climb nearly 5% in premarket trading on Wednesday after the company unveiled ambitious long-term growth goals, including a plan to reach $100 billion in annual data center revenue within five years by taking a larger share of the booming AI chip market from rival Nvidia.

Speaking at an investor event in New York, CEO Lisa Su said AMD expects the market for data center chips to expand to $1 trillion by 2030, driven by AI adoption and stronger software integration.

To capitalize on that opportunity, AMD is preparing to roll out its next-generation MI400 chips and the Helios rack system in 2026. These products are part of the company’s broader strategy to compete more aggressively in AI computing, an area dominated by Nvidia.

“AMD’s success will come from being better than NVIDIA on whatever metrics matter most to customers,” analysts at Morgan Stanley said, adding that factors like power efficiency, component availability, and performance will determine leadership in what they called a “winner-takes-most” market.

At the event, AMD projected 35% annual growth for its overall business and 60% annual growth in its data center segment over the next three to five years. Chief Financial Officer Jean Hu said the company also aims for earnings of $20 per share within that timeframe, compared to LSEG’s 2025 estimate of $2.68 per share.

While analysts praised AMD’s bold targets, some cautioned about execution challenges, potential AI spending slowdowns, and supply chain constraints.

AMD shares have already gained 97% this year and are up 16% since October 6, when the company announced a partnership with OpenAI.

Microsoft Plans Thousands of Job Cuts Amid AI Expansion

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Microsoft is preparing to lay off thousands of employees, particularly in its sales division, according to a Bloomberg News report published Wednesday. The move comes as the company accelerates investments in artificial intelligence (AI) and realigns its workforce to support the growing demands of the technology.

The layoffs are expected to be announced early next month, following the end of Microsoft’s fiscal year. While the exact number of job cuts has not been confirmed, sources suggest that the move will impact more than just sales roles. Microsoft declined to comment on the report.

This would mark the second significant round of layoffs in 2025, following cuts in May that affected around 6,000 employees.

The tech giant has committed a record $80 billion in capital expenditure this fiscal year, with most of that spending allocated to expanding data centers and AI infrastructure. These investments are designed to support Microsoft’s growing suite of AI-powered services, including its close partnership with OpenAI and integration of generative AI across its software platforms.

The shift mirrors trends across the industry. Amazon CEO Andy Jassy stated on Tuesday that generative AI and agent technologies would likely reduce corporate workforce needs over the coming years, underscoring how automation and AI are reshaping traditional business roles.

With a global workforce of 228,000 employees as of June 2024, Microsoft is balancing aggressive growth in AI with internal restructuring — a sign of how tech giants are repositioning for the next phase of innovation-driven competition.

Applied Intuition Surges to $15 Billion Valuation After $600 Million Investment Boost

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Applied Intuition, a leading autonomous vehicle software firm, has secured $600 million in a new funding round and tender offer, doubling its valuation to $15 billion, underscoring a renewed investor confidence in the self-driving vehicle sector.

The round was co-led by BlackRock-managed funds and Kleiner Perkins, with additional support from Franklin Templeton and the Qatar Investment Authority. The funding marks a significant jump from the startup’s previous valuation of $6 billion in March 2023, which included backing from Porsche—its first investment from an automaker.

Founded in 2017 and based in Mountain View, California, Applied Intuition develops software platforms for autonomous systems used in vehicles, defense, and logistics. The company counts major automotive brands like Toyota and Volkswagen among its customers.

CEO Qasar Younis stated the funds would fuel expanded investments in intelligent mobility technology, aiming to integrate autonomous capabilities into a wide range of vehicles and machinery.

Applied Intuition’s rise comes amid a broader resurgence of investor interest in autonomous driving, bolstered by expectations of regulatory easing under the Trump administration, including potential exemptions from certain safety standards.

Last week, the company also announced a new partnership with OpenAI, aimed at embedding generative AI into driving experiences to create more personalized vehicle behavior.