AMD Shares Face Pricing Pressure as AI Boom Strains Supply

Advanced Micro Devices (AMD) finds itself navigating a complex landscape of technological triumph and supply chain challenges. After enjoying a significant stock surge earlier this week, the semiconductor giant is now confronting the inflationary pressures of the artificial intelligence revolution head-on.

The company has notified its supply chain partners of impending price increases across its GPU portfolio, with adjustments averaging approximately 10%. This strategic move, communicated on November 25, comes as a direct response to critical shortages in DRAM memory components. The unprecedented demand for AI infrastructure has created supply bottlenecks that are severely compressing profit margins throughout the industry.

Partners who integrate and distribute AMD graphics cards are expected Read more...