I'm LongbridgeAI, I can summarize articles.AMD is securing over 500MW of Core Scientific's data-center capacity via 15-year agreements, potentially generating $14 billion in revenue. The deal supports AMD Instinct GPUs and EPYC CPUs starting in 2027, with AMD receiving warrants for Core Scientific shares. Wedbush views this as expanding AMD's reach beyond hyperscalers but notes concerns about circular financing where chipmakers finance their own demand. Investors await AMD's Q2 earnings to assess growth and customer commitments.
Advanced Micro Devices is locking up more than 500 megawatts of Core Scientific data-center capacity, a move that could broaden access to its AI systems beyond major cloud companies while deepening concerns that chipmakers are helping finance their own demand.
Core Scientific operates high-density data centers and earns most of its revenue from colocation services for AI workloads. It is repurposing former cryptocurrency-mining sites as it shifts toward contracted hosting revenue.
The initial arrangement covers about 530 megawatts across five U.S. sites under 15-year agreements and represents more than $14 billion in potential base contracted revenue for Core Scientific. Capacity is expected to support AMD customer deployments beginning in 2027 and could expand to 2.5 gigawatts. The companies will design infrastructure around AMD Instinct GPUs, EPYC CPUs, and ROCm software, while AMD will receive market-priced warrants to buy Core Scientific shares under certain conditions.
We see this deal as a means for AMD to increase the availability of its solutions beyond hyperscale customers (similar to NVDA's reach via its Neocloud customers/partners," Wedbush analyst Matt Bryson said.
That matters because Nvidia has extended its reach through specialized cloud providers. However, Wedbush also placed the agreement within the market's circular financing debate: AMD is not simply selling chips but supporting infrastructure that may eventually host them. AMD shares recently traded near $455 after an almost 8% decline amid pressure on AI and semiconductor stocks.
Investor takeaway on AMD stock
AMD's Aug. 4 earnings report is the immediate test. Investors should compare second-quarter revenue with management's $11.2 billion, plus or minus $300 million, outlook and monitor data centre growth, Instinct shipments and non-GAAP gross margin, guided at about 56%.
The bull case requires evidence that Core Scientific's 2027 capacity is backed by identifiable customers, firm deployment schedules, and attractive economics. Delays in power delivery, weaker AI spending, or greater financing exposure would reinforce circular-demand concerns. Customer commitments and a credible path beyond 530 megawatts would instead show AMD is building a genuine alternative distribution channel to Nvidia.