The Engines of Progress: Two Fortunes in the Age of Calculation

by

The year 2026 finds us at a peculiar juncture. The relentless march of what is termed ‘technology’ continues, and within its vast domain, a singular force – the artificial replication of thought, or ‘AI’ as it is now commonly known – holds the attention of men and the accumulation of their fortunes. It is not merely the promise of increased efficiency, but a deeper, more unsettling question that hangs in the air: are we building tools to serve humanity, or are we, in our ambition, forging instruments of a new and unforeseen dominion? The pursuit of wealth, ever a driving force in the affairs of men, has now focused itself upon these ‘engines of calculation,’ and a discerning eye may identify certain enterprises poised to reap the greatest rewards – and, perhaps, bear the greatest responsibility.

Let us, then, consider two such entities, not as mere subjects for financial speculation, but as reflections of the age itself, each embodying a particular facet of this unfolding drama.

Advanced Micro Devices: The Artisan of Silicon

Advanced Micro Devices, or AMD as it is known to the markets, is a company built upon the foundations of precision and ingenuity. It is a manufacturer of ‘chips’ – those tiny wafers of silicon upon which the very logic of computation is etched. For years, AMD has toiled in the shadow of larger, more established rivals, yet it has persevered, driven by a commitment to innovation and a willingness to challenge the established order. In recent times, the company has experienced a period of considerable growth, its revenues rising at a rate exceeding twenty percent annually. This is not merely a matter of good fortune, but the result of astute management and a timely recognition of the burgeoning demand for computational power.

The analysts, those tireless observers of the market’s whims, predict that AMD will achieve revenues of thirty-four billion in the coming year. But such numbers, while impressive to the uninitiated, tell only a partial story. The true measure of a company lies not in its current earnings, but in its potential for future growth. And here, AMD appears particularly well-positioned. Its long-term outlook calls for an annual growth rate of thirty-five percent, a truly remarkable figure in an industry often characterized by incremental gains. This ambition, however, is not without its risks. The company must navigate a complex web of competition, technological change, and economic uncertainty.

AMD enters this new year with its core businesses enjoying considerable momentum. The demand for its ‘data center’ chips – those powerful engines that drive the cloud – continues to surge, reaching a record of four and three-tenths of a billion. The company anticipates that this segment will grow at a rate exceeding sixty percent annually, a truly astonishing figure. But it is not merely the volume of demand that is noteworthy, but the nature of that demand. The world is increasingly reliant upon data, and that data must be processed, stored, and analyzed. AMD’s chips are at the very heart of this process.

One cannot help but observe the irony of the situation. The same chips that enable the creation of ever more sophisticated artificial intelligence are also used to facilitate the mundane tasks of everyday life. The same technology that promises to unlock the secrets of the universe is also used to display advertisements and recommend frivolous purchases. Such is the paradox of progress.

AMD’s strength also lies in its diversified portfolio. Its ‘Ryzen’ processors, used in personal computers, continue to gain market share against the established giant, Intel. Client segment revenue has reached two and eight-tenths of a billion, representing a forty-six percent increase year over year. This is not merely a matter of technical superiority, but also of astute marketing and a willingness to cater to the evolving needs of consumers. Even the company’s gaming business is experiencing a resurgence, pulling in one and three-tenths of a billion in revenue last quarter, nearly tripling over the year-ago quarter.

But it is AMD’s foray into ‘adaptive computing’ – those specialized chips that can be reprogrammed to perform a variety of tasks – that truly sets it apart. This gives AMD a unique edge in providing solutions for artificial intelligence running remotely on edge computing devices. The potential applications are vast, ranging from autonomous vehicles to industrial automation.

Altogether, AMD benefits from multiple avenues for chip demand. There is enough opportunity across its business to deliver excellent returns to investors. Analysts expect the company’s earnings to grow at an annualized rate of forty-five percent in the coming years. A figure, one might add, that seems almost audacious in a world often defined by caution and restraint.

Microsoft: The Weaver of Networks

Microsoft, a name now synonymous with the very fabric of modern computing, is a company built upon the foundations of software and services. It is a weaver of networks, connecting millions, if not billions, of users through its vast ecosystem of productivity tools, cloud services, and professional applications. Its ‘Microsoft 365’ suite, for example, generates consistent revenue through subscriptions, providing a steady stream of income that fuels further innovation.

Its subscription-based business model generates substantial revenue, which fuels investment in innovation. Microsoft spent sixty-nine billion in capital expenditures over the last year, all of which was internally funded out of its one hundred and forty-seven billion in trailing cash from operations. These investments have enabled the development of a world-class array of AI chips, systems, and cloud software. It is no surprise to see that Microsoft Cloud revenue grew twenty-six percent year over year in its most recently reported quarter, reaching forty-six billion.

Its large fleet of data centers powers the cloud services behind all its products, and is helping drive significant growth across its business. Microsoft 365, including Office software, has over four hundred million paid subscribers, while its Copilot AI assistant has more than one hundred million monthly active users. The sheer scale of Microsoft’s operations is truly staggering. It is a behemoth, a leviathan, a force of nature.

AI remains a key driver for the Microsoft Azure cloud business. Azure revenue grew forty percent year over year last quarter, a remarkable growth rate for a company that generated seventy-five billion in revenue for fiscal 2025 (which ended in June). This is not merely a matter of technological prowess, but also of strategic vision. Microsoft has recognized the transformative potential of artificial intelligence and has positioned itself accordingly.

Microsoft is spending aggressively on AI infrastructure, while still reporting healthy profitability. Operating profit grew twenty-four percent year over year last quarter, higher than its eighteen percent top-line growth rate. Microsoft’s huge installed base of users and technology infrastructure will make it a formidable player in an AI-driven economy. Analysts expect the company’s earnings to grow at a rate of thirteen percent per year. A respectable figure, perhaps, but one that pales in comparison to the more ambitious projections for AMD.

Read More

2026-01-19 03:23