Wall Street Today AMD Jumps on 1Trillion Data Center

 WallStreetBuzz
 
  WallStreetBuzz
 
Follow  Message
 
 
 
Your pulse on Wall Street! WallStreetBuzz delivers real-time market intelligence, breaking news, and expert analysis. From opening bell to closing bell, we cover major movers, market trends, sector rotation, institutional flows, and the stories moving stocks. Stay ahead of the curve with our comprehensive market coverage.
 

•  12 Nov 2025
 

•   AMD  
   
  +0.22%
•   NVDA  
   
  +0.73%
•   ON  
   
  +0.53%

Wall Street traded mixed signals Tuesday as the tech sector grabbed headlines with AMD's explosive rally, while broader markets digested the end of a historic 42-day government shutdown. The story everyone's watching? AMD's vision of a trillion-dollar AI data center market by 2030.

$AMD shares rocketed over 9% after CEO Lisa Su laid out a forecast that has chip investors buzzing. The AI data center market, she projects, will balloon to $1 trillion within five years, driven by what she called "uncontrollable demand" for AI chips. That's not marketing fluff when you consider the infrastructure buildout happening right now across hyperscalers and enterprise clients alike.

The momentum didn't stop with AMD. $NVDA climbed more than 1% as well, buoyed by strong earnings from key supplier Foxconn, which reported a 17% jump in annual profits. About 42% of Foxconn's revenue now comes from servers and cloud products, underscoring just how deeply AI infrastructure has penetrated the supply chain. When your manufacturing partner is printing money on AI-related components, that's validation the thesis isn't just hype.

AMD analyst day in New York delivered more than just big-picture projections. CFO Jean Hu outlined a path to expand operating margins beyond 35% within three to five years, up from 24% today, with annual earnings potentially exceeding $20 per share. Wall Street 2028 consensus had been hovering around $10.18, so this represents a dramatic upward revision. Whether AMD can execute on those targets is the billion-dollar question, but the roadmap they're presenting suggests confidence in their competitive position against Nvidia.

The Nasdaq dipped 0.6% as mega-cap tech names weighed on the index, while the Dow Jones bucked the trend with a 0.8% gain. The S&P 500 slipped slightly, caught between optimism about government operations resuming and lingering uncertainty about the Federal Reserve next move. With the Senate passing legislation to end the shutdown, investors are finally expecting the release of critical economic data that's been frozen for weeks, including the September jobs report, wholesale inflation figures, and retail sales numbers.

That data vacuum has forced markets to rely on private estimates, and the picture isn't entirely rosy. ADP reported that private sector employers have been cutting about 11,000 jobs weekly in recent weeks. That raises questions about labor market strength just as the Fed debates whether another rate cut is warranted before year-end. Some Fed officials want to wait and assess the impact of previous cuts, while others see room to ease further if the economy softens.

Treasury yields held relatively steady around 4.09% on the 10-year note after markets returned from Veterans Day. The stability in bonds suggests investors aren't panicking about inflation or growth, but they're not exactly positioning for a sharp slowdown either. It's a wait-and-see posture that mirrors the broader market indecision.

Elsewhere in the chip space, $ON jumped 8.5% after the Swiss athletic footwear company crushed quarterly expectations and raised full-year guidance. Strong demand in North America and Europe is driving growth for the Nike and Adidas competitor, proving that premium athletic brands can still command pricing power even as consumers grow more selective.

Goldman Sachs threw some cold water on the AI enthusiasm with a sobering long-term forecast. Their strategists estimate the S&P 500 will deliver just 6.5% average annual returns over the next decade, citing parallels to the dot-com bubble. They're not calling for an imminent crash, but they believe Wall Street dominance will erode as global growth shifts to emerging markets and new economic centers in Asia. It's a contrarian take worth considering, especially for those building portfolios with 10-year horizons.

The trillion-dollar question for AMD and the broader chip sector is whether this AI infrastructure wave is sustainable or if we're building toward oversupply. Right now, demand appears genuine and capital spending from cloud giants continues accelerating. But history shows that when everyone building data centers at once, capacity can outpace demand faster than anyone expects. AMD challenge is executing on those ambitious margin targets while navigating an increasingly competitive landscape where Nvidia still holds the performance crown in many AI workloads.

View All Headlines