$Advanced Micro Devices(AMD)$
Only about 2 gigawatts of the company's current 12-gigawatt capacity is centered on AI-specific chips, and that share is expected to grow to about a third of the 38 gigawatts it plans to have online.
Tech companies have been pouring billions into data centers to power generative AI services like ChatGPT and Copilot, which need massive computing power.
Microsoft forecast stronger-than-expected cloud growth, offering fresh evidence that its big AI investments are starting to pay off and helping ease concerns that heavy spending on data centers and computing infrastructure could outpace demand.
The company expects capital expenditures of $50 billion for the fiscal first quarter of 2027 and $175 billion for the 2026 calendar year.
Microsoft is also planning to spread long-term leases on data centers over 25 years rather than 15, which lowers its annual reported capital expenditures.
Microsoft buys AMD.
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