AI Daily: AMD rallies as CEO talks $1T market opportunity

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

ANALYST DAY: During its financial analyst day, AMD (AMD) said it has $45B in custom chip design revenue that will start to ramp in 2026 and beyond. The company noted that these new design wins are in aerospace and defense, an automotive data center, and communications. AMD said it expected annual data center chip revenue of $100B within the next five years, and its earnings to more than triple. Further, the company expects the market for the company’s data center chips to grow to $1T by 2030, CEO Lisa Su said at its analyst day. AI will drive much of the expected growth.

At its event, AMD also said it is “on track” to achieve a data center revenue target of “tens of billions of dollars” in 2027, and also sees a “very clear path” to a double digit share in this market. The company added that that share translates to a growth rate of over 80% AI revenue over the next 3-5 years.

AI SUPER FACTORY: Microsoft (MSFT) is expanding its ambitious data center build-out with an AI “super factory,” a set of two-story structures in Atlanta aimed at connecting seamlessly with infrastructure in other areas to harness immense computing power, The Wall Street Journal’s Sebastian Herrera writes. The company is doubling its total data-center footprint over the next two years. One of its most important new sites is the factory in Atlanta that it is unveiling Wednesday, the publication notes. The site, part of its Fairwater network of artificial-intelligence centers, is a new class of Microsoft hubs built for AI training. It will contain hundreds of thousands of Nvidia (NVDA) graphics processing units and dedicated high-speed connections to other Fairwater locations, the author adds.

AI INFRASTRUCTURE: Brad Smith, Vice-Chair and President of Microsoft, announced an investment in Portugal’s Artificial Intelligence infrastructure. In partnership with Nscale, NVIDIA and Start Campus, Microsoft will implement 12,600 NVIDIA GPUs in Sines, setting a new benchmark for digital infrastructure in Europe. This initiative represents Microsoft’s largest investment in Portugal and the largest data center business ever conducted in the country, the company said. Technology will invest more than $10B from the beginning of 2026. It is also one of the largest investments in computational capacity of AI in Europe. “This partnership reflects our confidence in Portugal’s potential to lead the next wave of AI innovation,” says Brad Smith. “By strengthening national AI infrastructure through collaboration with Nscale, NVIDIA and Start Campus, we are helping to position Portugal as a benchmark for responsible and scalable AI development in Europe. It’s not just about technology – it’s about creating capacity, trust and opportunities for the future.”

OPENAI/FOXCONN: Nvidia and Apple (AAPL) supplier Foxconn (HNHPF) on Wednesday offered a bullish outlook on AI-related demand, saying it would be a big driver of 2026 growth, and teased an announcement next week with OpenAI, Reuters’ Wen-Yee Lee and Ben Blanchard report.

AMERICAN COMPUTING INFRASTRUCTURE: Anthropic said in a post to its corporate site, “Today, we are announcing a $50 billion investment in American computing infrastructure, building data centers with Fluidstack in Texas and New York, with more sites to come. These facilities are custom built for Anthropic with a focus on maximizing efficiency for our workloads, enabling continued research and development at the frontier. The project will create approximately 800 permanent jobs and 2,400 construction jobs, with sites coming online throughout 2026. It will help advance the goals in the Trump administration’s AI Action Plan to maintain American AI leadership and strengthen domestic technology infrastructure. We are proud to create good American jobs and bolster American competitiveness.”

NY TIMES DEMAND: OpenAI stated in a post to its corporate site, “Trust, security, and privacy guide every product and decision we make. Each week, 800 million people use ChatGPT to think, learn, create, and handle some of the most personal parts of their lives. People entrust us with sensitive conversations, files, credentials, memories, searches, payment information, and AI agents that act on their behalf. We treat this data as among the most sensitive information in your digital life-and we’re building our privacy and security protections to match that responsibility. Today, that responsibility is being tested. The New York Times is demanding that we turn over 20 million of your private ChatGPT conversations. They claim they might find examples of you using ChatGPT to try to get around their paywall. This demand disregards long-standing privacy protections, breaks with common-sense security practices, and would force us to turn over tens of millions of highly personal conversations from people who have no connection to the Times’ baseless lawsuit against OpenAI. They have tried this before. Originally, the Times wanted you to lose the ability to delete your private chats. We fought that and restored your right to remove them. Then they demanded we turn over 1.4 billion of your private ChatGPT conversations. We pushed back, and we’re pushing back again now. Your private conversations are yours-and they should not become collateral in a dispute over online content access.”