Top stories for the morning: Fed prepares for AI transformation, AMD reported "insatiable" demand

The Fed warns that the impact of artificial intelligence on the economy could prove transformative, changing the labor market and the approach to monetary policy. AMD forecasts 60% growth in data center revenue over five years, intensifying competition with Nvidia and building a presence in AI. These and other topics - in our review of key events by the morning of November 12.

Michael Barr, a member of the Board of Governors of the Federal Reserve System, said that artificial intelligence can fundamentally transform the global economy, but it is still impossible to predict how deeply these changes will affect the labor market and business models, Bloomberg reports. In a speech at the FinTech Festival in Singapore, he outlined two scenarios: gradual introduction of AI to improve the efficiency of existing processes or a large-scale transformation that changes the structure of employment and leisure. According to Barr, AI is already affecting the labor market - a survey by the Federal Reserve Bank of New York showed that companies are cutting back on hiring plans.

Barr also noted that trillion-dollar investments in data centers can be a powerful driver of productivity growth and long-term economic recovery without pressure on inflation. He added that if the impact of technology turns out to be significant, it could change the very approach of the Fed to conducting monetary policy.

AMD expects data center revenue to grow 60% over the next three to five years, from $16 billion in 2025 to more than $25 billion by 2030, Yahoo Finance reports. CEO Lisa Su said there is an "insatiable" demand for AI chips, and predicted the AI data center market will expand to $1 trillion, including server processors, graphics chips and networking equipment. AMD's major growth will be driven by large contracts - among them an agreement with OpenAI for 6 GW of capacity and the delivery of 50,000 chips to Oracle, which will start in 2026. The company is also preparing new generations of MI450 and MI500 processors for large AI platforms.

CFO Jean Hu forecasts AMD's total revenue growth of 35% over five years to $46 billion, with operating margins above 35% and gross margins of 55-58%. The company intends to increase its share in the server processor market from 40% to 50% and grow by more than 10% in the PC and gaming segment, displacing Intel. AMD shares have risen 61% in a year and almost doubled in value since the beginning of 2025, outpacing Nvidia's growth, the publication recalls.

After the reopening of the government, the House of Representatives will consider a bill to ban stock trading for members of Congress. This was announced by Congresswoman from Florida Anna Pauline Luna, calling the initiative "a victory for America", reports Yahoo Finance. Interest in the topic has increased after reports of numerous deals by members of Congress during market fluctuations caused by the trade policy of the Donald Trump administration, the publication points out.

A document called the Restore Trust in Congress Act proposes to prohibit congressmen, their spouses, children and trustees from owning or trading individual stocks and other securities. The bill's sponsors, Republican Chip Roy and Democrat Seth Magaziner, have garnered support from representatives of both parties. So far, it has been sent to committee for consideration, and it's unclear when it will reach a vote. House Speaker Mike Johnson has said he personally supports the idea but doesn't consider it a priority.

SoftBank Group shares collapsed by almost 10% after the company reported the sale of the entire stake in Nvidia for $5.8 billion. By the time of publication of this text quotes have recovered most of the losses, remaining in the minus by 2.3%.

SoftBank will use the proceeds from the sale to make major investments - $22.5 billion will be invested in OpenAI, the developer of ChatGPT, a source told CNBC. The Japanese company also cut its stake in T-Mobile, raising another $9.17 billion. Chief Financial Officer Yoshimitsu Goto said the deal was aimed at "preserving financial strength while offering investors new opportunities."

Despite the suddenness of the move, analysts consider it not a signal of caution, but a confirmation of SoftBank's increasing interest in artificial intelligence. The company was already an investor in Nvidia in 2017, but exited the position in 2019. The focus now shifts to OpenAI and UK-based Arm Holdings, whose chips underpin mobile and AI processors. Other Asian tech stocks - Advantest, Tokyo Electron, TSMC and SK Hynix - also fell in price on the back of the news.

- Japan's broad Topix index was up 0.8 percent, while the Nikkei 225 was up 0.3 percent.

- Hong Kong's Hang Seng Index was up 0.7 percent, while mainland China's CSI 300 index was little changed.

- In South Korea, the Kospi index jumped 1.1 percent, while the Kosdaq added 2.4 percent.

- Australia's S&P/ASX 200 was down 0.2 percent.

- S&P 500 futures were up 0.3 percent, Nasdaq 100 futures added 0.6 percent, and Dow Jones Industrial Average exchange-traded contracts rose 0.1 percent.

This article was AI-translated and verified by a human editor