Lisa Su: “Demand is greater than supply”… AMD stock price is at all-time high

(Seoul = Yonhap News) Reporter Joo-ho Jeong = AMD stock prices hit an all-time high as Lisa Su, CEO of the American semiconductor company AMD, said that the situation in which demand for semiconductors will exceed supply will continue for several years.

On the New York Stock Exchange on the 6th (local time), AMD's stock price closed at $649.42, up 2.8% from the previous trading day. During the day, it rose to $658.52, setting a new all-time high. The market capitalization increased to approximately $1.06 trillion (approximately 1440 trillion won).

According to Bloomberg News, CEO Su met with reporters in Taipei, Taiwan, where he was visiting supply chain partners, and said, "Demand will be very high in the coming years."

He emphasized, “We have increased our own supply and production capacity this year, but demand is greater than supply,” and added, “We plan to significantly increase supply in 2027, but we clearly need more.”

CEO Su revealed that not only the central processing unit (CPU) but also memory and advanced packaging capabilities, such as high-bandwidth memory (HBM) for AI servers, are lacking.

He explained that previously, production capacity was planned looking 1 to 2 years ahead, but now the company is coordinating with partners looking 3 to 5 years ahead.

CEO Su also reaffirmed the investment in Taiwan of more than $10 billion (approximately KRW 13.6 trillion) announced in May and said, "As demand continues to increase, we will increase the amount in the future."

On this day, Citigroup raised AMD's target stock price from $575 to $800.

With the launch of Metaplatform's AI agent 'Muse', analyst Atif Malik analyzed, "Agent-type AI has the potential to increase computing demand dozens of times compared to existing chatbots."

He predicted that the central processing unit (CPU) market size will grow at an average annual rate of 60% from $29 billion last year to $300 billion in 2030, and that "AMD will be the main beneficiary of the CPU renaissance."

AMD's market capitalization exceeded $1 trillion on the 21st of last month as Metamuse, which provides each user with a dedicated virtual computer in the cloud, raised expectations for CPU demand. Expectations that the benefits of AI, which had been concentrated on graphics processing units (GPUs), will expand to CPUs due to the spread of agent-type AI are driving up stock prices.

However, on this day, the upward trend was concentrated on AMD, with Intel's stock price, which Citi cited as a 'secondary beneficiary', falling 3.2%.