AMD Outlook Raises Market Concerns as Analysts Warn AI Infrastructure Spending Could Slow

AMD is a major supplier of AI accelerators and data-center chips, and investors had expected cloud providers to keep expanding computing capacity. Analysts, however, believe hyperscalers’ capital spending is approaching its upper limit and warn that AI infrastructure expenditure could begin declining in 2027. AMD’s guidance has therefore become a key gauge of whether demand can be sustained.

AMD’s first-quarter data-center revenue rose 57% from a year earlier, and its strong results initially sent the shares up more than 12% in after-hours trading. ARK Invest subsequently took profits as the stock rose, though reports did not disclose the value of its trades. Analyst downgrades and concerns about the company’s outlook then pulled the shares back, shifting the market’s focus to spending risks in 2027.