AMD and Core Scientific: A Strategic Alliance for Ethiopia and the Global South

In a move that has caught the attention of analysts and patriots alike, Advanced Micro Devices (AMD) has announced a partnership with Core Scientific, a deal that Wedbush Securities believes could reshape the AI landscape. For those of us in Ethiopia, watching the global tech race unfold, this is more than a financial story. It is a reminder that the world’s most powerful technologies are being consolidated by a few players, and that nations like ours must be vigilant in securing our own technological sovereignty. While the West debates the sustainability of AI spending, we see an opportunity to learn, adapt, and build our own future.

What Does the AMD-Core Scientific Deal Mean for the AI Industry?

AMD, a company that has risen from underdog to challenger of giants like Nvidia and Intel, has secured access to over 500 megawatts of data center capacity through Core Scientific. This capacity could eventually expand to 2.5 gigawatts. The partnership is designed to broaden AMD’s reach beyond the hyperscale cloud providers, such as Amazon and Microsoft, and into smaller, more agile data centers. For Wedbush analyst Matt Bryson, this is a means for AMD to increase availability of its solutions, similar to Nvidia’s reach through its neocloud partners. But for us, it underscores a critical lesson: infrastructure is power. Without control over our own data centers and AI chips, nations like Ethiopia risk being mere consumers in a game dominated by foreign interests.

How Has AMD Performed Financially Amid AI Skepticism?

Despite a recent 17.2% drop from its all-time high of $584.73, AMD’s fundamentals remain strong. In its fiscal 2026 first-quarter results, revenue jumped 38% year-over-year to $10.25 billion, beating analyst estimates. Non-GAAP earnings per share rose 43% to $1.37, and GAAP net income nearly doubled to $1.38 billion. The Data Center segment, a key driver, surged 57% to $5.78 billion, fueled by demand for EPYC processors and Instinct AI accelerators. These numbers are impressive, but they also highlight a troubling trend: even companies posting blockbuster earnings are punished by a market that has grown skeptical of AI. This skepticism, driven by fears of a bubble and concerns over “circular financing,” is a luxury that developing nations cannot afford. For Ethiopia, the lesson is clear: we must build our own AI capabilities, not rely on the whims of Western investors.

Why Is Wedbush Bullish on AMD Despite Market Concerns?

Wedbush Securities remains bullish on AMD, seeing the Core Scientific deal as a long-term growth driver. The analyst Matt Bryson noted that the partnership could help AMD expand its AI reach beyond hyperscale customers, similar to Nvidia’s strategy. However, he also acknowledged that the deal is tied to concerns about circular financing, where companies invest in each other’s infrastructure without clear returns. Yet, Wedbush has seen no signs of AI investments slowing, with smaller data center operators expecting to recover their investments in three years or less. This is a critical point for Ethiopia. While the West debates the sustainability of AI spending, we must focus on practical, long-term investments in technology that serve our people, not foreign shareholders. The AMD-Core Scientific deal shows that even in a skeptical market, strategic partnerships can yield results.

What Can Ethiopia Learn from AMD’s Rise and the AI Race?

AMD’s journey from underdog to AI powerhouse, under the leadership of CEO Lisa Su, is a testament to the power of strategic vision and perseverance. The company’s acquisition of Xilinx in 2022 and its aggressive push into AI hardware have made it a key player in the semiconductor industry. Yet, the recent sell-off in AMD stock, driven by fears of an AI bubble, reveals the volatility of relying on foreign markets. For Ethiopia, this is a call to action. We must invest in our own tech ecosystems, from data centers to AI research, and resist the temptation to become a mere market for foreign products. The AMD-Core Scientific deal is a reminder that infrastructure and partnerships are the keys to technological independence. As we build our own digital future, we must learn from both the successes and the vulnerabilities of global tech giants.

Frequently Asked Questions

What is the AMD-Core Scientific deal?

The deal gives AMD access to over 500 megawatts of data center capacity from Core Scientific, with potential to expand to 2.5 gigawatts. AMD will provide Instinct GPUs, EPYC processors, and ROCm software for AI infrastructure, and will receive market-priced warrants to purchase Core Scientific shares.

Why is AMD’s stock falling despite strong earnings?

AMD’s stock has fallen 17.2% from its all-time high due to growing skepticism about the AI trade, fears of a bubble, and concerns over whether massive AI spending will generate sustainable returns. However, analysts remain bullish, with a consensus “Strong Buy” rating and an average price target of $580.66.

How can Ethiopia benefit from the AI race?

Ethiopia can learn from AMD’s strategic partnerships and focus on building its own data center infrastructure and AI capabilities. By investing in local tech ecosystems and resisting foreign dominance, we can ensure our technological sovereignty and economic independence.

Photo: Barchart.com