The Six Five Pod | EP 285: AMD's $100B Data Center Vision, SoftBank's $5B Nvidia Exit, Government Shutdowns and GPU Shortages

On this episode of The Six Five Pod, hosts Patrick Moorhead and Daniel Newman discuss the tech news stories that made headlines this week. The handpicked topics for this week are:

 

1. AMD Financial Analyst Day Breakdown: AMD presents long-term growth projections with over 35% revenue CAGR. Pat & Dan discuss AMD’s 10-15% GPU market share projection, emphasizing Lisa Su's track record of execution and credibility. 

 

2. SoftBank's Strategic Repositioning: SoftBank sold its entire stake in Nvidia for $US5.83 billion ($8.9 billion). Masayoshi Son, Chairman of Japan's SoftBank Group plans to reallocate capital to OpenAI and other AI infrastructure investments. Hosts discuss the potential of ARM-based AI chip development.

 

3. Anthropic's Infrastructure Investment: New $50 billion data center construction commitment with FluidStack. Claude Code is driving significant revenue and a path to 2028 profitability. Comparison with OpenAI's infrastructure strategy and independence goals.

 

4. Cloud Infrastructure and Capacity Deals: Nebius secures $3 billion deal with Meta for GPU capacity. Meta's strategy of risk-sharing and outsourcing during demand peaks.

 

5. The Depreciation Debate: Patrick argues there’s a 6-year depreciation period for GPUs based on historical usage patterns, citing continued use of A-, V-, and H-series GPUs. Questions are raised about reticle limits and performance scaling sustainability.

 

6. Government Shutdown Resolution: Senate votes to reopen government after 43-day closure, leaving in its wake and estimated $11 billion permanent economic loss and $16 billion in missed wages. Hosts break down the market’s mixed response with AI sector concerns overshadowing the reopening.

 

7. Cisco Earnings Analysis: Beat on revenue and earnings with solid enterprise performance. AI infrastructure orders are expected to triple to $3 billion in 2026. Hyperscale AI orders are at $1.3 billion with a strong growth trajectory.

 

8. CoreWeave Market Position: Stock down 33% from three-month peak, but still up 16% over six months. Data center build-out delays appear to be impacting capacity and revenue projections.

 

9. Applied Materials Performance: Beat expectations despite revenue decline from the China market loss. Future growth potential from TSMC, Intel, and Samsung US expansion.

For a deeper dive into each topic, please click on the links above. Be sure to subscribe to The Six Five Pod so you never miss an episode.