Advanced Micro Devices (AMD) stock slipped on Monday alongside reports that the chipmaker is planning to increase the price of its graphics processing units (GPUs). According to these reports, AMD has notified its manufacturing partners of its intention to raise the price of its GPUs, including those used for artificial intelligence (AI) applications and PC gaming.
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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) 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.
