AMD Surges on $3 Trillion Market Estimate Boost, Gold Tumbles
Shares of AMD jumped 6% on Tuesday after the chipmaker raised its potential total addressable market to $3 trillion by 2030. This figure is above the company's previous estimate of roughly $2 trillion, which was provided in July.
Chief Financial Officer Jean Hu pointed to rising demand for GPUs, CPUs, and AI-enabled PCs as drivers of the expanded opportunity. She also said AMD's data center business is expected to more than double next year.
The company plans to launch its MI450 GPU this quarter, with production expected to increase during the fourth quarter and into 2027. AMD has also increased supply in the constrained CPU market, supporting expectations for server CPU growth of more than 80% in the second half of this year and more than 70% next year.
Spot gold fell 0.73% to $4,371.2 an ounce, while US gold futures for December delivery dropped 1.3% to $4,418.40. Higher oil prices have added to concerns that inflation could remain elevated, potentially strengthening the case for tighter Federal Reserve policy.
Rising interest rates can weigh on gold because it does not generate income. Silver, however, rose 0.3% to $66.3074 an ounce, while platinum gained 0.6% to $1,837.72.