New York, May 22, 2026, 13:04 (EDT)
- AMD was up 4.9% at $471.48 by midday on the Nasdaq.
- CEO Lisa Su said the global CPU market is “tight” with AI demand outpacing forecasts.
- AMD is putting over $10 billion into Taiwan for new ecosystem investments, and it’s starting up production on its new 2-nanometer EPYC server chip.
Advanced Micro Devices AMD got a lift on Friday after CEO Lisa Su said the global CPU market was tighter than expected on higher demand, adding to a rally that has put the chipmaker among the most watched AI stocks on Wall Street.
AMD shares gained 4.9% to $471.48 as of 1:04 p.m. EDT, after hitting a session high of $481.41, StockAnalysis data show. The stock ended Thursday at $449.59.
Investors are watching to see if demand for artificial intelligence computing is still expanding or if the trade is getting too crowded. CPUs, which run servers and handle data center workflow, are drawing more interest as AI shifts from training to “inference”—using finished models in real-world applications.
AMD CEO Lisa Su said in Taipei that the company is asking partners in Taiwan to increase capacity, after meeting with big customers in China and worldwide. “The overall CPU market has had significantly higher demand than any of us predicted a year ago,” Su said. “I would say the CPU market is tight.” Reuters
AMD CEO Lisa Su said supply is set to increase each quarter through this year, and “significantly more” capacity is on the table for 2027 and after. Su said AI inferencing and agentic AI are boosting demand. Agentic AI refers to systems with more autonomy for tasks. Reuters
Advanced Micro Devices, Inc. said Thursday it plans to spend over $10 billion in Taiwan’s AI ecosystem, aiming to boost advanced packaging and manufacturing for next-generation AI hardware. Advanced packaging joins chip components to work together as a single system. That step has turned into a choke point for high-end AI and data center chips.
AMD CEO Lisa Su said in the announcement, “As AI adoption accelerates, our global customers are rapidly scaling AI infrastructure to meet growing compute demand.” The chipmaker said it’s still planning multi-gigawatt deployments for its Helios rack-scale platform, which uses AMD Instinct MI450X GPUs and 6th Gen EPYC CPUs, starting in the second half of 2026. Advanced Micro Devices, Inc.
AMD said it has started ramping up production of its next-gen EPYC chip, called “Venice,” using Taiwan Semiconductor Manufacturing Co’s 2-nanometer process in Taiwan. The company plans to raise production at TSMC’s Arizona plant in the future. AMD described Venice as the first high-performance computing product to go into production on TSMC’s 2-nanometer tech. Advanced Micro Devices, Inc.
Direct competition is in focus. Reuters said investors and analysts now view AMD as Nvidia’s main AI chip challenger, with Intel still a top rival in server CPUs. Nvidia leads the AI accelerator market, those chips that run AI workloads faster. AMD’s push is to bundle CPUs, GPUs and networking as a full data-center solution.
Supply is starting to figure in too. Amkor Technology said Thursday it is working with AMD to package AMD’s chips. “We’re moving up the value chain. We’re more integrated with the customers, and that’s really changing the dynamic to where we can extract more value out of our services,” Amkor CEO Kevin Engel told Reuters. Reuters
Market backdrop was positive. Wall Street’s major indexes gained Friday, with the Nasdaq Composite up 0.67% at 11:34 a.m. ET and the Philadelphia semiconductor index climbing 2.4%. Investors watched U.S.-Iran talks and bought tech shares before Memorial Day weekend. U.S. markets stay shut Monday, May 25.
AMD’s stock may have already run ahead on good news. The company reported first-quarter revenue up 38% to $10.3 billion, with data-center sales jumping 57% to $5.8 billion. But filings flagged risks from export rules, tariffs, supply limits, memory supply, and rivals that could weigh on results.
Timing is also in focus. Large packaging and manufacturing projects can take years before they provide reliable supply. If customer rollouts slip or AI demand slows, sentiment could turn fast. Thomas Hayes, chairman at Great Hill Capital, told Reuters that many investors are betting on a quick fix to the Iran conflict. “If that assumption proves to be wrong, the market will catch down very quickly,” he said. Reuters
