As global demand for artificial intelligence continues to surge, major tech companies are racing to enhance their chip capabilities and secure their positions in the market. This competitive landscape is driving significant price adjustments and strategic forecasts, as evidenced by Advanced Micro Devices‘ (NASDAQ:AMD) recent developments.
AMD stock gained on Monday amid reports indicating that the company has raised the price of its MI350 AI chip by $10,000 to $25,000.
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Additionally, HSBC evaluated that “MI350 can now compete with Nvidia’s (NASDAQ:NVDA) Blackwell B200 in the market. The Wall Street firm expects AMD’s 2026 AI chip sales to be significantly higher than the prior estimate of $9.6 billion, at $15.1 billion.
Also Read: AMD CEO Highlights Higher Costs For US Made Chips As Supply Chain Strengthens
The semiconductor chip stock also received a boost from a favourable industry regulatory report, which indicated that the United States had paused new restrictions on tech exports to China to avoid disrupting trade talks and support President Donald Trump‘s efforts to meet with Chinese President Xi Jinping later this year.
In recent months, the Commerce Department’s Bureau of Industry and Security received instructions to delay the strict enforcement of export controls on China, according to a Financial Times report, which cites current and former U.S. officials. This policy shift comes as top U.S. and Chinese economic officials prepare to launch high-level trade discussions in Stockholm aimed at resolving long-standing disputes.
AMD stock surged 44% year-to-date, gaining over 80% in the last three months.
Last week, Trump unveiled aggressive new AI initiatives at a summit event. Trump signed three executive orders to reduce AI regulation, accelerate infrastructure development, and promote U.S. leadership in AI. Nvidia CEO Jensen Huang praised the White House’s approach, calling it a competitive advantage for the U.S.. At the same time, AMD CEO Lisa Su projected that the demand for AI chips could exceed $500 billion in the years to come.
Trump publicly acknowledged Huang and Su as key figures advancing America’s AI leadership.
Alphabet’s increased 2025 capital spending forecast—up to $85 billion—also contributed to optimism, signaling growing demand for cloud and AI infrastructure. Trump is expected to roll out further plans to secure power access for AI-driven data centers.
AMD Price Action: Advanced Micro Devices shares were up 3.58% at $172.43 at the time of publication on Monday, according to Benzinga Pro data.
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