AMD Stock Hits Record High Amid Strong AI Chip Demand
AMD's stock price reached a new all-time high as CEO Lisa Su stated that demand for AI chips is very strong and the company will significantly expand production capacity.
Advanced Micro Devices (AMD) saw its stock price reach a new historic high on Friday. The company's CEO, Lisa Su, indicated in an interview that demand for AI chips is exceptionally robust and currently exceeds supply.
Despite efforts to increase production capacity, Su acknowledged that AMD is still facing a situation where demand is significantly higher than what can be supplied. The company plans to substantially expand its manufacturing capacity by the end of 2027 to address these supply constraints.
Last month, AMD's stock climbed approximately 30%, pushing its market capitalization over $1 trillion for the first time. In a move to bolster its technological capabilities, AMD also announced on September 28th its agreement to acquire AI startup World Labs for $8.2 billion.
The semiconductor company is operating in a competitive landscape for AI processors. These capacity expansions and strategic acquisitions are aimed at positioning AMD to capitalize on the rapidly growing artificial intelligence market.