AMD and Meta Sign 6GW Agreement to Power AI Infrastructure
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.AMD, META DEAL:AMDand Metaannounced a 6-gigawatt agreement to power Meta's next generation of AI infrastructure across multiple generations of AMD Instinct GPUs. This agreement expands on the companies' existing strategic partnership and aligns roadmaps across silicon, systems and software to deliver AI platforms purpose-built for Meta's workloads. The first deployment will use a custom AMD Instinct GPU based on the MI450 architecture to deliver AI platforms that are optimized for Meta's workloads at gigawatt-scale. Shipments supporting the first gigawatt deployment are scheduled to begin in the second half of 2026 powered by the custom AMD Instinct MI450-based GPU and 6th Gen AMD EPYC CPUs, codenamed "Venice," running ROCm software and built on the AMD Helios rack-scale architecture. AMD Helios was developed jointly by AMD and Meta through the Open Compute Project to enable scalable, rack-level AI infrastructure.CLAUDE COWORK:Anthropic is launching several Claude Cowork updates, including plugins for more customization, as it looks to make it even more work ready and effective. Anthropic is also shipping new enterprise connectors. Comments taken at Anthropic's online live event "The Briefing: Enterprise Agents," showcasing the latest features of its AI assistant Claude and launch new products.Anthropic introduced 10 new plug-ins for business customers, enabling applications in investment banking, wealth management, and HR tasks, following recent releases that contributed to a selloff in traditional software stocks. Anthropic's plug-ins were developed jointly with partners, including FactSetand LSEG, while companies including Thomson Reutersand RBC Wealth Management are using AI agents powered by Anthropic, according to the company's webcast. Shares of FactSet are up 7% in morning trading as Anthropic's event is ongoing.SOFTWARE-REPLACEMENT HYPE OVERDONE:Commenting on Anthropic's Enterprise Agent event where the company provided the latest product updates that make Claude Cowork effective for enterprises, Wedbush notes the company provided some use cases across different industries, including Spotifyfor reduced engineering time on complex code migrations, Novo Nordiskfor improved clinical study documentation timelines, and Salesforcefor reduced timelines in Slack. While these use cases are impressive, the reality is that these new AI tools will not rip and replace existing software ecosystems and data environments with these AI tools only as useful as the data it can reach, the firm argues. Wedbush believes market is conflating foundation model capability with full enterprise software replacement and the fear that generative AI will rewrite legacy systems overnight ignores enterprise reality. Cyber becomes the enforcement layer of AI, not a casualty of it, it adds. The firm sees CrowdStrike, Palo Alto Networks, and Zscaleras "winners and NOT losers" in this AI world.Truist analyst Miller Jump notes that this morning Anthropic provided an hour-long briefing showcasing their progress and vision for agentic AI in the enterprise. Three themes stood out to the firm that it believes are worth noting in infrastructure software, namely the importance of data unification, auditability, and observability. Truist sees Snowflake, JFrog, and the observability players - Datadog, Dynatraceand Elastic- as the potential beneficiaries in its coverage from those themes.PENTAGON DEAL:xAI, the artificial intelligence company founded by TeslaCEO Elon Musk, has signed a deal with the Pentagon to allow the U.S. military to use Grok, xAI's model, in classified systems, a Department of Defence official told' Dave Lawler and Maria Curi. Up until now, Anthropic's Claude model has served as the sole model available in the systems on which the Pentagon's most sensitive intelligence work, weapons development, and battlefield operations take place, but the department is threatening Anthropic in a spat over safeguards and may have to find a replacement AI model, the authors note.INTEL COLLABORATION:SambaNova introduced their SN50 AI chip, which boasts a max speed that's 5X faster than competitive chips. The company also announced a planned collaboration with Intelto deliver high-performance, cost-efficient AI inference solutions, and more than $350M in investment from new and existing investors. "Positioned as the most efficient chip for agentic AI, the SN50 chip offers enterprises a 3X lower total cost of ownership - a powerful foundation to scale fast inference and bring autonomous AI agents into full production. The SN50 will be shipping to customers later this year," SambaNova said. To quickly scale and distribute SN50, SambaNova is collaborating with Intel, and has obtained $350M in strategic Series E financing to expand manufacturing and cloud capacity.AUTONOMOUS CUSTOMER EXPERIENCES:Klaviyoannounced a strategic partnership with Googleto help brands deliver the next generation of autonomous AI-driven customer experiences from product discovery through purchase, service and loyalty. The partnership brings together Google's leadership in search, advertising, AI, and messaging with Klaviyo's real-time customer data and decisioning, enabling brands to move beyond static campaigns toward experiences that adapt automatically to customer intent and behavior.GOOGLE LABS:Google said in a blog post, "ProducerAI, a platform that allows you to create and refine music using generative AI, is joining Google Labs. Our teams share a mission of helping artists of every level make the music they imagine... Our focus is on enhancing human artistry, enabling exploration and expression. Together with Google DeepMind and YouTube, we've already been working with musician partners through our Music AI Sandbox, which offers a suite of experimental tools for professional musicians and producers that want to use AI as a collaboration partner and platform for experimentation. Grammy-winning artist Wyclef Jean is one partner who used Lyria as a creative tool during the development of his song, "Back From Abu Dhabi". Collaborations like these have been crucial in the development of our newest model, Lyria 3, and are incredibly valuable as we welcome ProducerAI to Google and continue to build out these technologies and deepen our relationships with both emerging and established artists."INTEGRATION:Wix.comannounced an integration between Wix Bookings and GoogleSearch, Google Maps and Google AI Mode. Wix Bookings businesses that use Google Business Profile can now display their services, prices and near real-time availability directly inside Google's experiences and instantly convert high-intent traffic into bookings.AWS COLLABORATION:Nokiaannounced a new collaboration with AmazonWeb Services to bring the first agentic AI-powered 5G-Advanced network slicing solution to a live 5G network. The intent-based 5G slicing innovation combines Nokia's advanced network slicing with AWS AI platform technologies to empower telecommunication providers in delivering premium services precisely where and when they are needed.
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AMD Partners with Meta for AI Infrastructure Expansion
- Strategic Partnership: AMD has entered a five-year agreement with Meta to deploy up to 6 gigawatts of Instinct data center GPUs, which is expected to significantly enhance AMD's competitive position in the AI infrastructure market.
- Massive Revenue Potential: Analysts predict that AMD could generate up to $60 billion in revenue from the Meta contract over five years, indicating substantial financial returns from this partnership.
- Positive Market Reaction: Following the announcement of the partnership, AMD's stock surged nearly 9%, currently trading around $214, reflecting strong market optimism regarding the deal.
- Upgraded Earnings Expectations: Analysts forecast a 59% increase in AMD's earnings to $6.62 per share this year, with the Meta partnership likely to drive performance beyond market expectations, aiding the stock's ascent towards the $300 target.
Investment Outlook: Polymarket and Nvidia's Growth Potential
- Polymarket User Growth: Since its launch in 2020, Polymarket has emerged as a leading prediction market, hosting nearly half a million monthly active traders as of last October, despite being banned in over a dozen countries, indicating its global appeal and potential user base.
- Nvidia Market Dominance: As the world's largest producer of discrete GPUs, Nvidia controls over 90% of the market share, successfully transitioning its revenue focus from gaming PCs to data centers, reflecting a successful business model transformation.
- Future Growth Potential: The global AI market is projected to grow at a CAGR of 30.6% from 2026 to 2033, and Nvidia's leading position and technological advantages in this sector will likely benefit its stock price in the coming years.
- Strong Financial Performance: From fiscal 2015 to 2025, Nvidia's revenue and EPS grew at CAGRs of 39% and 58%, respectively, with expectations for continued growth at 48% and 47% through fiscal 2028, showcasing its sustained profitability and investment appeal.
Polymarket vs Nvidia: Investment Insights
- Popularity of Polymarket: Since its launch in 2020, Polymarket has emerged as a favored platform for short-term speculators, boasting nearly 500,000 monthly active traders as of last October, despite being banned in over a dozen countries, indicating its strong appeal and growth potential in the prediction market.
- Nvidia's Market Leadership: As the world's largest producer of discrete GPUs, Nvidia's stock has surged over 24,000% in the past decade, with its revenue now primarily derived from the data center market rather than gaming PCs, highlighting robust demand in AI and high-performance computing sectors.
- Future Growth Potential: Analysts project Nvidia's revenue and EPS to grow at CAGRs of 48% and 47% through 2028, reflecting its sustained competitive edge in the rapidly expanding AI market, even with a current P/E ratio of 27.
- Investment Strategy Recommendation: Although Nvidia's stock has significantly appreciated, holding Nvidia shares long-term may yield higher returns as the AI market evolves, surpassing the gains of short-term speculators on Polymarket, underscoring its strategic significance as a solid investment choice.
AMD Partners with Meta, Validating AI Infrastructure Capabilities
- Partnership Validation: AMD's agreement with Meta marks its first full platform validation at hyperscale, confirming its hardware's capability to meet the demands of the world's largest cloud operators, thereby enhancing AMD's competitive position in the AI market.
- Inference Demand Surge: While Wall Street primarily focuses on training workloads, the proliferation of autonomous AI systems will lead to exponential growth in inference demand, creating structural opportunities for companies like AMD positioned at the center of large-scale inference infrastructure.
- Positive Financial Outlook: AMD's forward P/E ratio stands at approximately 31x with an expected EPS growth of 49%, reflecting its increasing exposure to high-value data center and AI workloads; although net margins are below industry averages, its growth trajectory remains compelling.
- Options Trading Strategy: To express a bullish view, a recommendation is made to buy the April 17, 2026 $210/$260 Call Vertical, with a maximum risk of $1,606 per contract and a maximum reward of $3,394 per contract, targeting potential upward movement in AMD's stock price.
Bond Investors Increasingly Worried About AI Bubble
- Rising AI Bubble Risk: According to the latest survey from Bank of America Global Research, 23% of bond investors now view the AI bubble as their top concern, a significant increase from 9% in December, indicating heightened awareness of AI's potential impact on markets.
- Increased Bond Issuance Expectations: Investors anticipate $285 billion in bond issuance from hyperscalers this year, up from $210 billion expected in December, reflecting optimism about AI-related spending plans from major companies like Amazon, Alphabet, and Meta.
- Diminished Concerns Over Tech Disruption: Despite fears of AI-driven corporate obsolescence, only 10% of investors express significant worry, suggesting a relatively optimistic outlook on technological disruption that may influence investment strategies moving forward.
- Limited Geopolitical Concerns: The survey reveals that only 10% of bond investors consider geopolitical tensions as a major risk, despite escalating U.S.-Iran relations, indicating a lower focus on geopolitical factors in current investment decisions.
Nvidia Set to Report Q4 Earnings Amid AI Market Speculation
- Earnings Preview: Nvidia is set to report its Q4 earnings after the market closes on Wednesday, with expectations of $1.53 earnings per share and $65.8 billion in revenue, including $60.2 billion from data centers, making the results crucial for gauging AI demand.
- Market Reaction Expectations: Nvidia's stock rose 0.8% ahead of the earnings report, with options indicating a post-earnings move of 5.6%, reflecting cautious optimism among investors, despite ongoing concerns about the long-term growth of the AI market.
- China Market Dynamics: A U.S. Commerce Department official stated that Nvidia has not yet sold any H200 chips to Chinese customers, even though three major Chinese tech firms have been approved to purchase over 400,000 H200 chips, which could impact Nvidia's future sales strategy in China.
- Industry Impact Analysis: As Nvidia prepares to release its earnings, investors will closely monitor its influence on the broader tech sector, particularly companies involved in AI, as Nvidia's performance could significantly sway investor sentiment towards other tech stocks.
AMD Partners with Meta for AI Infrastructure Expansion
- Strategic Partnership: AMD has entered a five-year agreement with Meta to deploy up to 6 gigawatts of Instinct data center GPUs, which is expected to significantly enhance AMD's competitive position in the AI infrastructure market.
- Massive Revenue Potential: Analysts predict that AMD could generate up to $60 billion in revenue from the Meta contract over five years, indicating substantial financial returns from this partnership.
- Positive Market Reaction: Following the announcement of the partnership, AMD's stock surged nearly 9%, currently trading around $214, reflecting strong market optimism regarding the deal.
- Upgraded Earnings Expectations: Analysts forecast a 59% increase in AMD's earnings to $6.62 per share this year, with the Meta partnership likely to drive performance beyond market expectations, aiding the stock's ascent towards the $300 target.
Investment Outlook: Polymarket and Nvidia's Growth Potential
- Polymarket User Growth: Since its launch in 2020, Polymarket has emerged as a leading prediction market, hosting nearly half a million monthly active traders as of last October, despite being banned in over a dozen countries, indicating its global appeal and potential user base.
- Nvidia Market Dominance: As the world's largest producer of discrete GPUs, Nvidia controls over 90% of the market share, successfully transitioning its revenue focus from gaming PCs to data centers, reflecting a successful business model transformation.
- Future Growth Potential: The global AI market is projected to grow at a CAGR of 30.6% from 2026 to 2033, and Nvidia's leading position and technological advantages in this sector will likely benefit its stock price in the coming years.
- Strong Financial Performance: From fiscal 2015 to 2025, Nvidia's revenue and EPS grew at CAGRs of 39% and 58%, respectively, with expectations for continued growth at 48% and 47% through fiscal 2028, showcasing its sustained profitability and investment appeal.
Polymarket vs Nvidia: Investment Insights
- Popularity of Polymarket: Since its launch in 2020, Polymarket has emerged as a favored platform for short-term speculators, boasting nearly 500,000 monthly active traders as of last October, despite being banned in over a dozen countries, indicating its strong appeal and growth potential in the prediction market.
- Nvidia's Market Leadership: As the world's largest producer of discrete GPUs, Nvidia's stock has surged over 24,000% in the past decade, with its revenue now primarily derived from the data center market rather than gaming PCs, highlighting robust demand in AI and high-performance computing sectors.
- Future Growth Potential: Analysts project Nvidia's revenue and EPS to grow at CAGRs of 48% and 47% through 2028, reflecting its sustained competitive edge in the rapidly expanding AI market, even with a current P/E ratio of 27.
- Investment Strategy Recommendation: Although Nvidia's stock has significantly appreciated, holding Nvidia shares long-term may yield higher returns as the AI market evolves, surpassing the gains of short-term speculators on Polymarket, underscoring its strategic significance as a solid investment choice.
AMD Partners with Meta, Validating AI Infrastructure Capabilities
- Partnership Validation: AMD's agreement with Meta marks its first full platform validation at hyperscale, confirming its hardware's capability to meet the demands of the world's largest cloud operators, thereby enhancing AMD's competitive position in the AI market.
- Inference Demand Surge: While Wall Street primarily focuses on training workloads, the proliferation of autonomous AI systems will lead to exponential growth in inference demand, creating structural opportunities for companies like AMD positioned at the center of large-scale inference infrastructure.
- Positive Financial Outlook: AMD's forward P/E ratio stands at approximately 31x with an expected EPS growth of 49%, reflecting its increasing exposure to high-value data center and AI workloads; although net margins are below industry averages, its growth trajectory remains compelling.
- Options Trading Strategy: To express a bullish view, a recommendation is made to buy the April 17, 2026 $210/$260 Call Vertical, with a maximum risk of $1,606 per contract and a maximum reward of $3,394 per contract, targeting potential upward movement in AMD's stock price.
Bond Investors Increasingly Worried About AI Bubble
- Rising AI Bubble Risk: According to the latest survey from Bank of America Global Research, 23% of bond investors now view the AI bubble as their top concern, a significant increase from 9% in December, indicating heightened awareness of AI's potential impact on markets.
- Increased Bond Issuance Expectations: Investors anticipate $285 billion in bond issuance from hyperscalers this year, up from $210 billion expected in December, reflecting optimism about AI-related spending plans from major companies like Amazon, Alphabet, and Meta.
- Diminished Concerns Over Tech Disruption: Despite fears of AI-driven corporate obsolescence, only 10% of investors express significant worry, suggesting a relatively optimistic outlook on technological disruption that may influence investment strategies moving forward.
- Limited Geopolitical Concerns: The survey reveals that only 10% of bond investors consider geopolitical tensions as a major risk, despite escalating U.S.-Iran relations, indicating a lower focus on geopolitical factors in current investment decisions.
Nvidia Set to Report Q4 Earnings Amid AI Market Speculation
- Earnings Preview: Nvidia is set to report its Q4 earnings after the market closes on Wednesday, with expectations of $1.53 earnings per share and $65.8 billion in revenue, including $60.2 billion from data centers, making the results crucial for gauging AI demand.
- Market Reaction Expectations: Nvidia's stock rose 0.8% ahead of the earnings report, with options indicating a post-earnings move of 5.6%, reflecting cautious optimism among investors, despite ongoing concerns about the long-term growth of the AI market.
- China Market Dynamics: A U.S. Commerce Department official stated that Nvidia has not yet sold any H200 chips to Chinese customers, even though three major Chinese tech firms have been approved to purchase over 400,000 H200 chips, which could impact Nvidia's future sales strategy in China.
- Industry Impact Analysis: As Nvidia prepares to release its earnings, investors will closely monitor its influence on the broader tech sector, particularly companies involved in AI, as Nvidia's performance could significantly sway investor sentiment towards other tech stocks.
