Advanced Micro Devices NASDAQ:AMD, a semiconductor company producing processors and AI accelerators, fell approximately 5.7% in Wednesday's regular-session trading as investors assessed a broader AI-chip selloff alongside its new infrastructure partnership. Reuters reported that semiconductor stocks remained under pressure as investors questioned AI returns following disappointing market reactions to strong industry earnings. The Philadelphia Semiconductor Index declined 1.6% during early trading.
Core Scientific NASDAQ:CORZ, a U.S. data-center infrastructure operator, and AMD announced that AMD would secure more than 500 megawatts of U.S. capacity for customer deployments beginning in 2027. The companies may expand the arrangement to 2.5 gigawatts. They plan to collaborate on infrastructure design and the deployment of AMD Instinct GPUs, EPYC processors and ROCm software, giving AMD customers access to sites configured around the company's technology.
Initial 15-year agreements cover approximately 530 megawatts across five sites and could provide Core Scientific with more than $14 billion in base contracted revenue. Expanding from 530 megawatts to 2.5 gigawatts would increase the potential capacity by nearly five times, although the larger amount is not guaranteed. The agreement therefore provides AMD with a documented route for expanding deployments without establishing that customers will immediately use the maximum capacity. Investors may be weighing that longer-term opportunity against nearer-term concerns about AI capital spending, semiconductor expectations and whether infrastructure commitments will translate into processor revenue beginning in 2027.