AI Infrastructure Spending Hits $80B as Safety Concerns Mount

Lisa Su, chief executive of U.S. chipmaker AMD, said on the 6th that the company plans to sharply increase its semiconductor supply in 2027 to meet surging demand for artificial intelligence. Speaking to reporters in Taipei, Su said, "We have been able to increase supply throughout 2026, and in 2027 we will expand supply significantly." AMD, Nvidia's biggest rival in AI graphics processors, is rapidly expanding its AI chip business, and its market capitalization recently topped 1 trillion dollars. She said one purpose of the Taiwan visit was to secure a system for boosting production of central processing units and graphics processors across AMD's supply chain to meet growing AI demand, adding that as part of talks with local partners she had already met with Hon Hai Precision Industry and planned to meet with Taiwan Semiconductor Manufacturing Company. Ahead of a visit to South Korea the same day, Su said AMD is also working closely with memory chip makers to secure adequate supply.

Marvell Technology outlined a new growth target at its investor day of $90 billion in revenue by its fiscal year 2031, sending the stock up about 7 percent. The company said it expects upwards of $20 billion in revenue for fiscal 2028, above Wall Street's original estimates, and put fiscal 2030 revenue guidance between $70 billion and $90 billion, far more than prior Street estimates. The outlook rests on Marvell's custom chip business, which builds chips for customers including Google and Amazon; Marvell has a multi-year agreement with Google worth north of $100 billion if all steps are completed and certain milestones are hit. Marvell is currently in its fiscal 2027 third quarter, making the fiscal 2028 target less than a year away. The stock is up 240 percent year to date.