AMD Market Cap Tops $1 Trillion as Lisa Su's September Run Continues

Elon Musk said xAI's Colossus 2 cluster could more than double its current number of Nvidia chips by year-end, scaling AI computing capacity across his businesses. Colossus 2 currently runs 110,000 Nvidia GB200 chips and 440,000 GB300s, according to Musk, with another 220,000 GB300s expected to be fully operational next week and a further 220,000 in November. Musk added that another 220,000 GB300s could come online by late December if we get lucky, which would bring Colossus 2 to roughly 1.21 million Nvidia GB200 and GB300 chips if every planned tranche arrives on schedule, more than double the 550,000 chips Musk said are currently installed. The buildout is especially notable because xAI already operates Colossus 1 with 150,000 Nvidia H100s, 50,000 H200s and 30,000 GB200s, and the SpaceX unit previously said it plans to equip its Memphis facility with 1 million graphics processing units by 2026. The planned additions are concentrated in Nvidia's latest-generation GB300 accelerators, highlighting continued demand for its most advanced AI hardware.

Nvidia Corp. CEO Jensen Huang said the artificial intelligence infrastructure boom will eventually produce more computing capacity than the market needs, but he does not expect that turning point for another two to three years. Speaking on The Ezra Klein Show, Huang said demand and supply will eventually invert and markets will slow into a "period of digestion" that could last six months, nine months or a year, though he added it will not happen next year or in the next couple of years. He also argued that AI labs should not release systems they cannot control. Nvidia reported second-quarter revenue of $96.2 billion, up 106% from a year earlier, while Data Center revenue surged 117% to $89 billion. TrendForce estimates the world's nine largest cloud providers will spend more than $886.7 billion this year, up about 90%, before capital expenditures climb to roughly $1.3 trillion in 2027, and it raised its 2026 AI server shipment growth forecast to nearly 31%. Former Fidelity fund manager George Noble compared the boom to "dot-com and subprime all merged in one," and Reuters reported investors are demanding higher yields on AI-linked debt as hyperscalers prepare for another surge in borrowing. A Polymarket market puts the probability of an AI-industry downturn by Dec. 31 at 10%, resolving "Yes" only if at least three specified stress events occur within 90 days, including Nvidia falling 50% from its all-time high, the SOXX semiconductor ETF falling 40%, or the bankruptcy of OpenAI or Anthropic. Nvidia shares closed Wednesday down 1.5% at $225.51 and were about 1% lower in Thursday premarket trading.