AMD rises on high demand, promises more chips in 2027

4.4 Investments

6 oct, 2026

AMD’s chip demand exceeds supply, with a major boost expected in 2027. Shares hit record highs as analysts raise targets, driven by AI growth and strong platform expectations.

AMD is experiencing chip demand that surpasses its current production capacity, even after planned increases in 2026. The company anticipates a significant supply boost in 2027 to address this gap. CEO Lisa Su has emphasized the need for collaboration among artificial intelligence companies to foster innovative and secure systems. A major agreement with OpenAI, involving the deployment of 6 gigawatts of AMD GPUs, is contingent on both AMD's share price and the timely delivery of chips, which remains challenged by supply chain bottlenecks. Despite these hurdles, AMD shares have surged to $633.91, nearing their annual high, and the company’s market capitalization now exceeds one trillion dollars after a 285% increase over the past year. Wall Street firms like Stifel and Mizuho have raised their price targets for AMD to $700 and $705, respectively, citing the artificial intelligence boom and strong expectations for MI450 platform revenues. Analysts note that AMD’s growth constraints are due to infrastructure and DRAM availability, rather than a lack of demand.