Semiconductor giant AMD saw its shares climb 6% on Tuesday after the company lifted its long-term market opportunity forecast. Chief Financial Officer Jean Hu told investors that the total addressable market could reach as much as $3 trillion by 2030, up from the roughly $2 trillion estimate provided in July. The upward revision reflects accelerating demand for GPUs, CPUs, and AI-enabled PCs, with the data center segment expected to more than double in revenue next year.
AMD is preparing to launch its MI450 GPU this quarter, with production ramping through the fourth quarter and into 2027. The company has also increased supply in the constrained CPU market, supporting expectations for server CPU growth of over 80% in the second half of this year and more than 70% next year. Demand for its Helios rack-scale systems is coming from Meta Platforms and two unnamed AI labs, with orders exceeding initial purchase agreements. Newer "neo-cloud" providers are also showing interest.
Data center revenue surged 107% year over year, and AMD has secured a 6GW GPU agreement with OpenAI. However, investors remain cautious about risks including export controls, memory supply constraints, tariffs, and weakness in the gaming segment. The stock's move comes amid a broader tech rally, though broader market gains were limited by oil price pressures.
Gold slips as rate hike bets firm
Spot gold fell 0.73% to $4,371.20 per ounce, while December-dated US gold futures dropped 1.3% to $4,418.40. The decline was driven by rising oil prices, which have stoked inflation concerns and boosted expectations that the Federal Reserve may raise interest rates again. Traders now price in roughly a 60% chance of a rate hike at the September meeting, up from about 50% before the stronger-than-expected August jobs report, which showed 162,000 new jobs and unemployment holding at 4.1%.
Investors are awaiting Thursday's Producer Price Index and Friday's Consumer Price Index for further clues on the Fed's path. Higher rates typically weigh on gold, which pays no income. Silver managed a 0.3% gain to $66.31 an ounce, while platinum rose 0.6% to $1,837.72. Palladium, however, fell 2.5% to $1,354.32. The recent gold selloff has been driven by similar rate concerns.
Oil climbs on Middle East supply risks
Brent crude rose to as high as $99.46 a barrel, its highest since July 24, while WTI also advanced sharply. Renewed hostilities in the Middle East, including attacks by Yemen's Iran-backed Houthis on Saudi cities and energy facilities, have heightened fears of supply disruptions. Shipping through the Strait of Hormuz remains severely reduced; the waterway previously handled about 20% of global oil supplies.
The supply concerns have pushed fuel prices higher, with US diesel hitting record highs last week and gasoline prices also reaching records over the Labor Day weekend. Goldman Sachs and HSBC have raised their crude price forecasts for the remainder of 2026 and 2027, citing the possibility that shipping disruptions could persist. The oil surge has also pressured equity markets, as seen in the Dow's recent decline.
Bitcoin slips below $79,000
Bitcoin dropped to as low as $77,600 during the Wall Street session, its lowest since September 3, before recovering to $78,400. The cryptocurrency came under pressure alongside US equities as rising oil prices and inflation concerns weighed on risk assets. Analyst Rekt Capital is watching the $78,300 level, which previously acted as support after Bitcoin's failed breakout in May. A weekly close below that level, followed by a bearish retest, could signal further downside.
The move leaves Bitcoin facing headwinds from both macroeconomic uncertainty and a key technical support zone. As always, investors should monitor these levels closely.
This article is for informational purposes only and does not constitute financial advice.
