AMD launches Meta deal as Nvidia reports record earnings

Key Takeaways

• AMD secured a multi-year AI hardware deal with Meta Platforms valued over $100 billion, including capacity for 6 gigawatts of GPUs and a potential 10% equity stake for Meta.
• AMD and Nutanix formed a $250 million partnership for enterprise AI inference, with AMD investing $150 million in Nutanix stock and up to $100 million for engineering.
• Nvidia reported record fiscal year 2026 revenue of $68.1 billion and net income of $42.96 billion, with data center revenue up 75% to $62.3 billion.
• Nvidia projects first-quarter fiscal 2027 revenue of $78 billion, indicating continued high demand for AI compute power.
• HSBC predicts software will benefit significantly from AI integration, rather than being replaced, due to AI enhancing existing platforms.
• AI chatbots, including ChatGPT, struggle with nuanced financial market analysis and lack empathy for personalized financial advice, requiring human expertise.
• Retail trader optimism in AI stocks has declined, with bullishness dropping from 57% to 52%, according to Charles Schwab.
• HEALWELL AI is expanding its healthcare AI solutions, including SMART Identify, SMART Search, and SMART Summary, into the Middle East, Canada, and the United States.
• Third Way Health raised $15 million in Series A funding to provide AI platforms for managing administrative tasks in medical practices.
• Apple is integrating AI through "Apple Intelligence" and a partnership with Google, while Adobe enhances its Creative Cloud and Experience Cloud with Adobe Sensei AI.

Nutanix and AMD Partner for Enterprise AI with $250M Deal

Nutanix and AMD have formed a multi-year partnership focused on enterprise AI inference, backed by a $250 million investment. AMD is investing $150 million in Nutanix stock and committing up to $100 million for engineering. This collaboration aims to offer an open alternative to vertically integrated AI solutions, allowing businesses more flexibility in choosing hardware and software. The first joint platform is expected in late 2026, with revenue anticipated in 2027. This partnership also targets service providers offering GPU-as-a-service.

Meta Invests Over $100B in AMD AI Hardware

Meta Platforms has signed a multi-year AI hardware deal with AMD valued at over $100 billion. This agreement includes capacity for 6 gigawatts of AMD AI GPUs for Meta's next-generation infrastructure. Meta also secured a performance-based warrant that could grant it up to a 10% stake in AMD. This significant investment highlights Meta's commitment to AI infrastructure and diversifies its supplier base alongside Nvidia. The deal aims to give Meta more control and flexibility in its AI hardware sourcing.

AMD Strikes Major AI Deals with Meta and Nutanix

Advanced Micro Devices (AMD) has announced significant multi-year AI infrastructure agreements. One deal with Meta Platforms involves up to six gigawatts of custom AMD Instinct GPUs and EPYC CPUs, including warrants that could give Meta a 10% equity stake in AMD. Additionally, AMD is collaborating with Nutanix to create an open, full-stack AI infrastructure platform for enterprise AI workloads. These partnerships aim to deepen AMD's involvement in both hyperscale and enterprise AI markets.

Nvidia Reports Record Earnings as AI Reaches Inflection Point

Nvidia announced record earnings for its fiscal year 2026, with revenue reaching $68.1 billion and net income at $42.96 billion. The company's data-center revenue surged 75% to $62.3 billion, driven by high demand from major tech companies. CEO Jensen Huang stated that AI has reached an 'inflection point,' with demand for compute power skyrocketing. Nvidia projects first-quarter revenue of $78 billion, exceeding expectations. The company returned $41.1 billion to investors through dividends and share repurchases.

Nvidia's Strong Year Boosts AI Rally Amid Concentration Risk

Nvidia achieved record results for fiscal year 2026, driven by massive demand for AI infrastructure. The company reported fourth-quarter revenue of $68.1 billion, a 73% increase year-over-year, and full-year revenue of $215.9 billion. Its data center business generated $62.3 billion in quarterly revenue, up 75% annually. CEO Jensen Huang declared that the 'agentic AI inflection point has arrived,' with customers investing heavily in AI compute. Nvidia returned $41.1 billion to shareholders and expects first-quarter fiscal 2027 revenue around $78 billion.

Retail Traders Grow Cautious as AI Optimism Fades

A recent survey from Charles Schwab indicates that retail traders are becoming more cautious about the stock market, with bullishness dropping from 57% to 52%. Optimism surrounding artificial intelligence stocks has also declined significantly. Retail investors are now employing more sophisticated strategies like buying dips, selling at market tops, and using complex options trades. There is a greater focus on hedging rather than pure speculation among these traders.

HSBC: Software Will Benefit Most from AI, Not Be Replaced

HSBC believes software will be a major beneficiary of artificial intelligence, rather than being replaced by it. The bank dismisses fears of a 'SaaSpocalypse,' arguing that AI developers lack experience in creating enterprise-class software. HSBC suggests that AI will be integrated into existing software platforms, enhancing them rather than making them obsolete. The bank sees timely opportunities in the software sector, with valuations at historical lows despite strong demand momentum.

AI Chatbots Struggle with Market Analysis, Study Finds

A recent analysis revealed that current AI models, including ChatGPT, struggle to accurately interpret complex market events like the recent 'software selloff.' When presented with data on the year-to-date performance of specific stocks, the AI failed to recognize the common reason for their decline. The models also produced contradictory or muddled explanations, indicating that AI is not yet capable of nuanced financial market analysis. This suggests that human expertise remains crucial for understanding market dynamics.

AI Chatbots Offer Financial Advice, But Caution is Advised

An increasing number of people are using AI chatbots for financial advice, including tax help and retirement planning. These tools are easily accessible, provide instant responses, and can answer questions users might feel embarrassed asking a human. However, experts caution against fully trusting AI with financial decisions, noting that chatbots lack empathy and true understanding. While AI can offer useful ideas, human advisors remain essential for personalized guidance and relationship-based services.

HEALWELL AI Expands to Middle East, Sees Growth in North America

HEALWELL AI is expanding its global reach with its first AI implementation in the Middle East, partnering with a major governmental health system. The company is also experiencing growing adoption of its AI solutions, including SMART Identify, SMART Search, and SMART Summary, across Canada and the United States. These deployments aim to improve patient outcomes and operational efficiency in healthcare. HEALWELL AI's DARWEN™ platform is being used by leading health organizations to address challenges like physician burnout and administrative burdens.

Four Stocks Poised to Succeed Despite AI Market Fears

Despite growing concerns about AI's impact on the economy, certain stocks are expected to thrive. A hypothetical scenario from Citrini Research suggested potential negative outcomes for the economy in 2028 due to AI, causing market declines. However, some analysts believe specific companies will benefit from AI's ability to cut costs and increase profitability, even amidst market uncertainty and potential disruptions to white-collar jobs.

Third Way Health Secures $15M for Front-Office AI Solutions

Third Way Health, an AI services partner for medical practices, has raised $15 million in a Series A funding round led by Health Velocity Capital. The company focuses on providing AI platforms to manage administrative tasks for healthcare providers. This funding will support Third Way Health's efforts to expand its AI services beyond single-point solutions, allowing practices to delegate a bundle of administrative work to AI.

Apple vs. Adobe: Which AI Stock Has the Current Edge?

Apple and Adobe are both leveraging artificial intelligence, but the question of which stock has an edge remains. Apple is integrating AI through its 'Apple Intelligence' system and a partnership with Google for advanced AI models. Adobe continues to enhance its Creative Cloud and Experience Cloud products with its Adobe Sensei AI platform. While Apple trades at a higher valuation, its vast ecosystem and strategic AI integrations present significant growth potential, whereas Adobe offers a more accessible valuation with strong AI innovation in creative software.

Sources

• Nutanix-AMD $250M Strategic Partnership For Enterprise AI Inference
• Meta’s Massive AMD AI Deal Recasts Spending, Suppliers And Future Returns
• AMD Meta AI Deal And Nutanix Partnership Reframe Long Term Upside
• Nvidia posts earnings record: Huang says AI's "inflection point has arrived"
• Nvidia’s blowout year extends AI rally, deepening mega-cap concentration risk
• Retail traders grow more cautious on the market; AI optimism fades, Schwab says on CNBC
• 'Software will eat AI,' HSBC says. Here are the bank's top picks
• AI Can Do Many Things. Market Analysis Isn’t One of Them (Yet)
• AI: When your financial adviser is a chatbot
• HEALWELL AI Expands Global Footprint with First AI Implementation in Middle East and Growing Enterprise Adoption Across Canada and the United States
• TheStreet Pro: Four Stocks that Will Win Despite “Irrational Panic” over AI
• Exclusive: Third Way Health raises $15M for front-office AI
• Apple vs. Adobe: Which AI-Driven Tech Stock Has an Edge Now?