AMD Shares Surge as AI Chip Demand Outpaces Supply

Shares of Advanced Micro Devices rose significantly between September 16 and September 17, 2026, leading a rebound in semiconductor stocks. The stock initially climbed over 4% on Wednesday after Bank of America maintained a buy rating and Piper Sandler reiterated an overweight rating with a $600 price target. Analysts noted that demand for AMD CPUs and GPUs continues to exceed available supply, prompting the company to ramp up production.

The momentum continued on September 17, with shares jumping 6.3% after neocloud operator Nebius announced price increases for its chip offerings. Nebius informed customers that rates for AMD EPYC Genoa CPUs would increase by 25%, signaling sustained demand for AI compute infrastructure.

Financial performance remains strong, with second-quarter revenue reaching $11.5 billion, a 50% year-over-year increase. Data-center revenue more than doubled to $6.7 billion during that period. Growth is further supported by a multiyear partnership with Meta Platforms Incorporated to deploy Instinct GPUs across 6 gigawatts of capacity. AMD has provided third-quarter revenue guidance of approximately $13 billion and targets a data-center total addressable market exceeding $2 trillion by 2030.