AMD Shares Dip as GPU Price Hikes Spark Market Jitters
Tech investors recoiled as AMD's stock took a 3% hit following reports of aggressive GPU pricing adjustments. The move comes amid soaring demand for AI-training hardware—and what analysts call 'the crypto miner tax' on gaming-grade cards.
Market watchers note the irony: AMD's RDNA 4 lineup was supposed to democratize high-performance computing. Instead, board partners are reportedly charging premiums that'd make Nvidia blush.
The real kicker? These price surges arrive just as retail traders start chasing the next crypto bull run. Nothing like paying scalper prices for last-gen silicon while Wall Street snaps up the good stuff.
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The reports state that AMD has decided to hike the price of its GPUs due to increased memory costs. Memory manufacturers have failed to ramp up production to meet the demand spurred by AI, which has resulted in massive price increases for DRAM and NAND memory.
It’s unclear when AMD will announce the increased prices for its GPUs, but it could happen as early as this month. That would mark the second month in a row that the semiconductor company has raised GPU prices. There have also been reports that GPU rival Nvidia (NVDA) also plans to bump up its prices, but that might not happen until next year. While Intel (INTC) also makes GPUs, its offerings are much more limited and it hasn’t carved out a space in the market to compete with AMD and NVDA.
AMD Stock Movement Today
AMD stock was down 0.79% on Monday but remained up 102.71% year-to-date. The stock has also increased 77.65% over the past 12 months. AMD’s 2025 gains are largely due to the increased demand for its components to power AI data centers.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 27 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $281.78, representing a potential 14.95% upside for the shares.
