AMD

AMD stock fell 8.1% on Thursday as rising oil prices amid Middle East tensions fueled inflation concerns and raised questions about the sustainability of expensive AI infrastructure spending. Meta's negative free cash flow and new share class approval highlighted concerns about how tech companies will fund continued AI buildout if borrowing costs rise.

Marvell Technology reported fiscal Q2 2027 revenues of $2.74 billion, up 36.5% year-over-year, driven by hyperscaler AI infrastructure investments. The company expects scale-out switching revenues to more than double in fiscal 2027 and custom silicon revenues to more than double in fiscal 2028. However, MRVL faces intense competition from Broadcom and AMD in the data center market, and its stock trades at a premium valuation of 11.10X P/S compared to the industry average of 4.63X.

As agentic AI demand surges with an expected 40% CAGR through 2033, server CPU demand is accelerating. While Intel and AMD have benefited significantly from this trend, Arm Holdings is positioned to dominate the market long-term due to its superior energy efficiency (30-60% better than x86), growing market share (from 5% in 2020 to 20% currently), and expected 90% dominance in custom server CPUs by 2029. Arm's licensing model and new server CPU business targeting agentic AI workloads present significant growth opportunities.