AMD says it will outsell Intel for the first time in its history as Epyc and Instinct sales soar on AI demand

The TSX opened lower on Tuesday due to higher U.S. inflation expectations and weaker commodity prices. Endeavour Silver reported a 29% revenue increase but lowered gold production guidance. Equinox Gold missed EPS estimates. Nvidia fell 3% amid CEO controversy. U.S. indices also declined post-inflation data.

Advanced Micro Devices (AMD) stock rose 5.0% after announcing a $5 billion investment in AI company Anthropic, securing an equity stake and supply deal. The move follows an Oppenheimer upgrade to Outperform with a $600 target, citing data center revenue growth. AMD's EPYC processors were also selected for Google Cloud's new TPU system. AMD's stock traded as high as $539.25, up from a prior close of $508.58.

Anthropic, an AI company, disclosed that Nvidia, Alphabet, AMD, Micron, Broadcom, Microsoft, and TSMC Partners will invest $26 billion in its IPO. Nvidia and Google each commit $10 billion, while others invest smaller amounts. The funds will support Anthropic's $900.9 billion infrastructure spending over 20 years, with $70.7 billion due by September 2027.

NVIDIA's stock fell 4% to $170.67 after its board launched an investigation into CEO Jensen Huang. The probe follows reports of an alleged extramarital affair and potential national security concerns. NVIDIA's Q2 FY2027 revenue was $96.22 billion, up 105.8% YoY, with strong guidance for Q3. AMD and Broadcom gained 3% as investors rotated to rivals. The outcome of the board's investigation and NVIDIA's next earnings report are key catalysts.

U.S. stocks fell Tuesday after an inflation report showed higher-than-expected price increases, raising expectations for further Federal Reserve interest rate hikes. The S&P 500 dropped 0.7%, the Dow Jones fell 0.6%, and the Nasdaq declined 0.8%. Higher yields on the 10-year Treasury negatively impacted stocks, particularly in the real-estate sector, with Lennar, D.R. Horton, and PulteGroup seeing significant declines. Nvidia also fell 5.3% amid ongoing scrutiny and AI industry concerns.

US stocks fell Tuesday after an inflation report showed higher-than-expected price increases, raising expectations for a larger Fed rate hike. The S&P 500 dropped 0.2%, while the 10-year Treasury yield rose to 4.98%. Nvidia declined 3.1%, and GE Vernova fell 5.4%, while AMD gained 5.5%.