**Advanced Micro Devices (NASDAQ:AMD) **stock jumped 7% today, with the catalyst coming from Nvidia CEO Jensen Huang, who took the stage at the World Economic Forum to lay out his vision for the future of artificial intelligence – one that implies *trillions *of dollars in new infrastructure spending by the end of the decade.
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**Advanced Micro Devices (NASDAQ:AMD) **stock jumped 7% today, with the catalyst coming from Nvidia CEO Jensen Huang, who took the stage at the World Economic Forum to lay out his vision for the future of artificial intelligence – one that implies *trillions *of dollars in new infrastructure spending by the end of the decade.
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The market heard that message loud and clear. And while Huang runs Nvidia, his comments were a positive read-through for AMD and the entire AI hardware ecosystem.
In his remarks, Huang pushed back on the idea that AI is “just about models.” Instead, he described AI as a “five-layer cake.” At the base is energy – massive, real-time power consumption. Above that sits the chip and computing layer, followed by cloud infrastructure, then AI models, and finally the application layer where real economic value is created.
The key takeaway for investors is that none of the top layers can exist without everything underneath them. As Huang put it, AI has already kicked off “the largest infrastructure build-out in human history,” and so far, we’re only a few hundred billion dollars into what will ultimately be a multi-trillion-dollar effort by 2030.
That framing matters enormously for AMD. If AI infrastructure spending truly scales into the trillions, demand won’t be limited to Nvidia alone. Data centers will need enormous volumes of CPUs, GPUs, accelerators, networking, and memory – and AMD is a core supplier to that stack. Its EPYC server CPUs already compete aggressively in cloud and enterprise environments, and its Instinct accelerators are increasingly positioned as alternatives in AI training and inference workloads.
Huang reinforced this point by highlighting the scale of what’s already underway. TSMC is building 20 new chip plants. Partners like Foxconn, Wistron, and Quanta are constructing dozens of new computing factories. Memory makers such as Micron, SK Hynix, and Samsung are ramping investments, with Micron alone committing $200 billion in the U.S.
That kind of spending signals sustained, long-duration demand for compute silicon – exactly the environment in which AMD thrives.
Just as important, Huang emphasized that the application layer is finally taking off. With AI models now good enough to build on, capital is pouring into “AI-native” companies across healthcare, finance, manufacturing, robotics, and more. In fact, he noted that 2025 is shaping up to be one of the biggest venture-funding years ever, with most of that money flowing directly into AI applications.
Wall Street, for its part, is broadly aligned with that bullish infrastructure narrative. AMD carries a Strong Buy consensus rating, based on opinions from 34 analysts over the past three months. Of those, 26 rate the stock a Buy and 8 recommend a Hold. The average 12-month price target stands at $284.29, implying 13% upside from recent levels. (See AMD stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.