
Advanced Micro Devices Inc. (NASDAQ:AMD) shares are trading higher Tuesday extending momentum from Monday after reports revealed the company raised the price of its MI350 artificial intelligence chip.
What To Know: The chip was up-ed by $10,000, bringing it to $25,000 per unit. The increase reflects growing confidence in AMD's competitiveness within the AI chip market, particularly against rival Nvidia's Blackwell B200.
The price adjustment comes amid a broader surge in investor optimism following HSBC's revised forecast for AMD's AI chip sales in 2026. The bank now estimates sales to reach $15.1 billion, significantly higher than its prior projection of $9.6 billion. Analysts view the MI350 as a viable challenger in the high-performance AI segment, boosting expectations for AMD's role in the rapidly expanding AI market.
Further supporting AMD's upward trend is a favorable policy shift from the U.S. government. According to the Financial Times, the Commerce Department has paused enforcement of new restrictions on technology exports to China, in an effort to support ongoing trade negotiations and a potential summit between President Donald Trump and Chinese President Xi Jinping. The regulatory easing is expected to benefit chipmakers like AMD that operate within sensitive supply chains.
Recent political developments have also factored into the bullish sentiment. At a recent summit, President Trump introduced a trio of executive orders aimed at bolstering AI development, cutting red tape, and advancing infrastructure. AMD CEO Lisa Su and Nvidia CEO Jensen Huang were both acknowledged by Trump as central figures in advancing U.S. AI leadership. Su, in particular, emphasized the potential of AI chip demand surpassing $500 billion in the near future.
AMD shares are now up over 80% in the last three months and 44% year-to-date, with the recent developments reinforcing the company's upward trajectory in a highly competitive and evolving AI market landscape.
AMD Price Action: Advanced Micro Devices shares were up 1.21% at $195.74 at the time of writing, according to Benzinga Pro.
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