Advanced Micro Devices (AMD) stock rallied on Monday alongside additional reports that the chip company plans to increase the price of its graphics processing units (GPUs). According to these reports, AMD will hike the price of its GPUs by at least 10%.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
AMD’s decision to raise the price of its GPUs isn’t without reason. A recent surge in demand for RAM has made the component scarcer. This has increased the prices of RAM, which is why AMD is allegedly planning to increase the price of its GPUs. Reports indicate that this price boost would affect its server and consumer GPUs.
Investors following the semiconductor sector won’t be surprised to learn that RAM prices have increased. This comes as more artificial intelligence (AI) companies need the component for their data centers. This AI boom has also been beneficial to AMD, as it offers CPUs and GPUs that target the AI market. AMD CEO Lisa Su even predicted that revenue growth would increase by 35% annually over the next three to five years due to the increased demand for AI data centers.
AMD Stock Movement Today
AMD stock was up 3.58% on Monday, extending a 74.87% year-to-date rally. The shares have also climbed 44.39% over the past 12 months. As noted above, AMD has benefited from the AI boom, which has also lifted the company’s shares higher in 2025.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 28 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $284.67, representing a potential 34.13% upside for the shares.
