AMD stocks fell approximately 7% on Monday despite announcing a new AI infrastructure partnership with Core Scientific. The agreement gives AMD access to more than 500 megawatts of U.S. data center capacity starting in 2027, with room to expand up to 2.5 gigawatts. The stock decline occurred as semiconductor stocks faced broad selling pressure, with investors questioning AI infrastructure spending returns amid rising capital expenditures across the sector.
AMD Secures 500 MW Data Center Capacity Starting 2027
Core Scientific and AMD said the partnership will support customer deployments of AMD artificial intelligence solutions. The companies will work together on data center design and the deployment of AMD Instinct GPUs, EPYC CPUs, and ROCm software.
The agreement gives AMD a larger infrastructure base as demand grows for AI compute, power, and land. Data center capacity has become a key constraint for chipmakers, cloud companies, model developers, and enterprise AI customers.
Mathew Hein, AMD's senior vice president and chief strategy officer of corporate development, said, "AI deployments are accelerating rapidly, and bringing that compute online requires trusted infrastructure partners with the scale and power to support the next era of AI."
Core Scientific CEO Adam Sullivan said the company's high-density infrastructure can support AMD's product roadmap. He said the partnership could grow over time as AMD expands its AI computing ecosystem.
As part of the agreement, AMD will receive market-priced warrants to purchase Core Scientific common stock. Those warrants remain subject to certain commercial conditions.
Core Scientific Shifts From Bitcoin Mining to AI Infrastructure
Core Scientific has been shifting from Bitcoin mining toward AI-ready data center services. The company plans to use its infrastructure to support model builders, cloud providers, and enterprises using AMD technology.
The move follows broader changes among Bitcoin miners seeking new revenue from AI hosting. Core Scientific has already repurposed facilities to support high-density colocation services.
The company previously sold 1,900 BTC to support its transition toward AI infrastructure. BitcoinTreasuries data shows Core Scientific still holds 547 BTC.
Core Scientific said it still earns revenue from crypto mining and hosting services. However, management has been redirecting more resources toward data center capacity for AI customers.
CORZ stock initially rose in premarket trading after the AMD announcement. The stock later dropped more than 3% at the market open as the wider technology selloff deepened.
Core Scientific shares have fallen more than 12% over the past week. The stock remains up more than 40% this year as investors track the company's AI infrastructure shift.
AMD Stocks Drop 8% Amid Chip Sector Selloff
AMD shares traded lower as semiconductor stocks faced broad selling pressure. The stock fell more than 8% during Monday's session and traded near $479.
The decline came as investors questioned whether AI infrastructure spending can keep producing strong returns. Intel's recent capital spending increase and foundry losses added pressure across the sector.
Alphabet also raised its planned AI capital spending for 2026, renewing concern over free cash flow pressure. Investors have become more selective toward chip stocks tied to large AI buildouts.
AMD will report quarterly results on August 4. Investors will watch data center revenue, MI-series GPU adoption, and customer demand for AI accelerators.
Recent insider stock sales also added to market attention. Over the past three months, AMD insiders sold more than $141 million in shares, including CEO Lisa Su's planned sale of 125,000 shares in June.
Despite all this, Wall Street firms still hold a positive view on AMD. Mizuho raised its target to $625, Bank of America lifted its target to $620, and Stifel Nicolaus moved its target to $635.
Concurrently, Citigroup also upgraded AMD to Buy. As of press time, among 44 analysts covering the stock, 30 rate it Buy, two rate it Strong Buy, 11 rate it Hold, and one rates it Sell.
FAQ
What did AMD announce on Monday?
AMD announced a new AI infrastructure partnership with Core Scientific that gives AMD access to more than 500 megawatts of U.S. data center capacity starting in 2027, with room to expand up to 2.5 gigawatts. The partnership will support customer deployments of AMD Instinct GPUs, EPYC CPUs, and ROCm software.
Why did AMD stocks fall despite the positive announcement?
AMD stocks fell approximately 7-8% on Monday as semiconductor stocks faced broad selling pressure. The decline occurred as investors questioned whether AI infrastructure spending can keep producing strong returns, with additional pressure from Intel's capital spending increase and Alphabet's raised AI capital spending plans for 2026.
When will AMD report quarterly results?
AMD will report quarterly results on August 4. Investors will watch data center revenue, MI-series GPU adoption, and customer demand for AI accelerators.
