AMD Boosts AI Chip Supply with $10B+ Investment

Key Takeaways

• <li>Zscaler received multiple price target hikes after its Investor Day, with Wells Fargo raising its target to $260 and Barclays highlighting a fiscal 2031 ARR target of $8 billion.</li>
• <li>AMD CEO Lisa Su said the company will invest tens of billions of dollars to ease AI chip supply shortages and will increase supply substantially in 2027.</li>
• <li>Parents are using ChatGPT to create school portraits, saving money on professional photo packages that can cost over $100 per family.</li>
• <li>Global AI development continues rapidly, with 16 new models launched by Chinese companies and 10 to 12 by US labs in September alone.</li>
• <li>China's open-weight AI models are gaining global users, but revenue largely flows to third-party platforms rather than the model developers.</li>
• <li>Nvidia CEO Jensen Huang called AI a new industrial revolution at a White House tech summit, while his biographer warns he may not see all the risks.</li>
• <li>Chick-fil-A will not use AI for drive-thru ordering, while rivals McDonald's and Wendy's are testing AI tools named Archy and FreshAi.</li>
• <li>A new report finds quantum software is not ready for real-world use with AI supercomputers, despite hardware improvements.</li>
• <li>WEKA Federal earned awardable status in the Tradewinds Solutions Marketplace for AI and machine learning solutions.</li>
• <li>Ironmouse found an AI watermark from Google's Gemini on her Fortnite art, traced back to music distributor Trap Nation.</li>

Zscaler stock wins multiple price target hikes after Investor Day

Zscaler drew multiple price target hikes on Wednesday after its Investor Day. Wells Fargo lifted its target to $260 from $215, while Citi, TD Cowen, Barclays, BofA, Stifel and Guggenheim also raised their targets. Analysts pointed to AI security, platform expansion and stronger long-term cash flow as key growth drivers. Zscaler reaffirmed its fiscal 2027 outlook with ARR of $4.39 billion to $4.42 billion and revenue of $3.90 billion to $3.94 billion. CEO Jay Chaudhry said the company aims to reach $10 billion in ARR long term.

Zscaler AI security wins over Wall Street but retail stays bearish

Zscaler earned multiple price target increases after its Investor Day as analysts praised its AI security positioning. Wells Fargo raised its target to $260 from $215, and other firms including Citi, Barclays and BofA also moved higher. Barclays highlighted a fiscal 2031 ARR target of $8 billion. Morgan Stanley stayed cautious with an Equal Weight rating and a $185 target. Despite analyst optimism, retail investor sentiment around ZS stock remained bearish.

Stifel raises Zscaler price target on AI security outlook

Stifel raised its Zscaler price target to $235 from $200 while keeping a Buy rating. The move followed Zscaler's first analyst day since 2021, where management outlined its strategy and long-term financial model. Stifel noted growing importance of securing AI systems and using AI to improve cybersecurity. Zscaler set a fiscal 2031 ARR base case above $8 billion with a 17% CAGR and an upside case of $10 billion at 22% CAGR. Several other firms also raised targets after the event.

AMD's Lisa Su says company will invest tens of billions in AI supply

AMD CEO Lisa Su said the company will invest tens of billions of dollars to ease AI chip supply shortages. She confirmed the $10 billion commitment announced in May is on track but said the company needs to go further due to rising demand. Su met with partners including Foxconn, Asus and TSMC during a trip to Taiwan and South Korea. AMD plans to increase supply further in 2027 and now shares forecasts three to five years ahead with suppliers. The Helios AI platform began shipping in the third quarter as planned.

AMD says AI demand will substantially lift chip supply in 2027

AMD CEO Lisa Su said in Taipei that AMD will substantially increase chip supply in 2027 as AI demand outpaces production. She said the company will also raise its Taiwan supply chain investment above the $10 billion announced in May but did not give a new figure. AMD now plans capacity three to five years ahead instead of one to two years. Su met with Foxconn and other Taiwan partners and planned a stop in South Korea for memory supply talks. Memory and advanced packaging remain tight across the industry.

Parents use ChatGPT to create kids school photos and save money

Parents are using ChatGPT to make school portraits of their children instead of paying for professional photo packages. TikTok creator Carlie Bond photographed her three kids and used ChatGPT to add traditional gradient backgrounds. Some parents also used ChatGPT to remove watermarks from professional photos. School photo costs can exceed $100 for one family with multiple children. Some people worry about uploading children's images to AI platforms.

Global AI development continues despite safety warnings

AI development is moving fast in both the US and China even though leaders urge caution. US President Trump said the US cannot slow down because whoever wins AI wins. In September, 10 Chinese AI companies launched 16 new models while US labs released 10 to 12 models. Companies like OpenAI, Anthropic, Google, Meta and DeepMind keep building more powerful systems. Safety researchers warn about risks like automated hacking and guardrail failures in open-weight models.

Quantum computing needs better software to work with AI supercomputers

A new report on HPC-Quantum-AI systems found that quantum software is not ready for real-world use even though hardware is improving fast. Researchers interviewed 15 HPC directors and quantum experts who said the software stack is fragmented and held together with temporary fixes. A quantum system called Helium will be connected to the Joliot-Curie supercomputer in France starting in 2027. The report says better interfaces and co-design between quantum and classical systems are needed. Researchers are working on hybrid quantum-classical workflows for materials science with Los Alamos and GE Vernova.

China open AI models gain global users but value goes to third parties

China open-weight AI models are becoming popular around the world. However much of the money generated flows to third-party platforms rather than the companies that actually built the models. These platforms host the open models on their own infrastructure and offer cheaper access. In contrast US companies like OpenAI and Anthropic keep their models closed and control access and pricing tightly. The open approach has boosted adoption but also exposed developers to strong competition.

WEKA Federal earns awardable status in Tradewinds Solutions Marketplace

WEKA Federal achieved awardable status in the Tradewinds Solutions Marketplace. The marketplace is a digital repository of pitch videos that address the Department of War's challenges in AI, machine learning, data and analytics. It is housed in the DoW Chief Digital Artificial Intelligence Office. The marketplace helps program offices avoid repeat technical evaluations and shortens the path from requirement to fielded capability.

Ironmouse upset over AI watermark in Fortnite art

Ironmouse, an anti-AI streamer, was upset to find an AI watermark on her art in Fortnite. The watermark came from Google's Gemini tool. Epic Games said the art was provided by the artist. The real issue came from Trap Nation, a music distributor that did not flag AI use. Trap Nation said they are working to replace the artwork.

Jensen Huang believes AI is going great

Jensen Huang, the CEO of Nvidia, thinks AI is developing well. He spoke at a White House tech summit with President Trump. Huang sees AI as a new industrial revolution driven by data centers. Nvidia has become the most valuable company in American history. His biographer worries Huang may not see all the risks of AI.

Chick-fil-A will not use AI in drive-thru

Chick-fil-A CEO Andrew Cathy said the company will not use AI for drive-thru ordering. Cathy said they want to keep human hospitality in customer service. Rivals like McDonald's and Wendy's are testing AI tools named Archy and FreshAi. Chick-fil-A focuses on customer satisfaction and prefers human interaction.

Sources

• ZS Stock Draws Multiple Target Hikes After Investor Day: Wall Street Sees AI Security Fueling $8B-Plus ARR Path
• Zscaler’s AI Security Bet Is Winning Over Wall Street – But Retail Sentiment Remains Bearish
• Stifel raises Zscaler stock price target on AI security outlook
• AMD's Lisa Su says the company will invest 'tens of billions' to ease AI supply crunch
• AMD Says AI Demand Is So High It Will ‘Substantially’ Lift Chip Supply In 2027
• Parents are using AI to generate pictures of their kids to save money on school photos
• Despite Warnings Global AI Development Is Racing On
• Bringing Quantum Into AI Supercomputing Needs More Than Great Qubits. 
• China’s open AI models are winning global users. Who is capturing the value?
• WEKA Federal Achieves Awardable Status in Tradewinds Solutions Marketplace
• Ironmouse, Who Hates AI, Not Pleased That AI Watermark Appeared On Her Art In Fortnite, Which Loves AI
• Opinion | Jensen Huang Thinks A.I. Is Going Great
• Chick-fil-A has no plans to add AI to its drive-thru ordering service despite other rivals doing so