Why AMD’s Supply Crunch Could Be Good News for Its Stock
Advanced Micro Devices (NASDAQ:AMD) has the sort of problem most companies wish for. It can’t build some of its chips as fast as customers want to buy them.
CEO Lisa Su said as much in Taipei on Oct. 6, telling reporters that demand is higher than AMD’s supply and that the company plans to increase its supply substantially in 2027. The shares closed at a record $649.42 the same day, valuing the chipmaker at over $1 trillion.
Is the shortage a cap on AMD’s growth? I don’t think so. I’d say it’s a sign that demand is running ahead of what the company planned for — and AMD is spending a lot to catch up.
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