AMD Shares Surge 7.3% on CPU Price Hike Reports

Advanced Micro Devices shares surged 7.3 percent during trading on Wednesday, closing at 220.27 after reaching a high of 221.33, amid reports that the company and rival Intel plan to raise central processing unit prices starting next month. The stock's advance came on elevated volume of nearly 48 million shares, 26 percent above the average, as investors reacted to signs of strengthening demand for processors driven by artificial intelligence applications.

The price increases, expected to average 10 to 15 percent across CPU lines with some models facing steeper hikes, stem from persistent supply constraints. Intel notified customers last week of adjustments effective in March, while Advanced Micro Devices informed clients of changes beginning in April. Multiple industry sources, including executives at server and gaming PC manufacturers, described lead times for CPU orders stretching from one or two weeks to eight to 12 weeks, with some extending up to six months. One executive at a gaming PC firm told reporters that supplies for personal computers would drop significantly in the second quarter of 2026 compared to the first, as production prioritizes server-grade chips for data...