AMD Stock Dips Amid GPU Price Hike Reports, Semiconductor Sector Feels Ripple Effects
Advanced Micro Devices shares declined 0.79% Monday following industry reports of impending GPU price increases. The chipmaker has notified manufacturing partners of planned hikes across its graphics processing unit lineup, including AI-optimized and gaming models. Memory component shortages, particularly in DRAM and NAND production, are driving the adjustment as demand from artificial intelligence applications overwhelms supply chains.
This marks AMD's second consecutive monthly price revision, with industry analysts anticipating formal announcement by month's end. Rival Nvidia may follow suit in 2024, while Intel's limited GPU portfolio leaves it sidelined from this pricing power dynamic. Despite the pullback, AMD maintains a 102.71% year-to-date gain as semiconductor demand continues outpacing capacity.
