Why AMD Stock Jumped Today

AMD shares rose 6.3% after Nebius, a cloud provider, announced price hikes for chip rentals, including a 25% increase for AMD's EPYC Genoa CPUs. The move signals strong demand for AI computing power. AMD's data center revenue grew 107% YoY to $6.7B in Q2 2026, contributing to total revenue of $11.5B, up 50% YoY.

AMD plans to raise chip prices by 10% in Q4 2026, affecting AI accelerators, GPUs, and motherboard chipsets. The increase is due to TSMC's wafer price hikes, which AMD cannot absorb. Motherboard manufacturers may pass costs to consumers. CPUs are excluded to maintain market share against Intel, but future hikes are likely.

Wall Street rebounded Thursday, led by semiconductor stocks. Intel (INTC) rose 8.6% after its CEO warned of CPU supply constraints, boosting Micron (MU) and SK Hynix (SKHY). Nvidia (NVDA) and AMD also gained. The Fed's rate hike initially caused a sell-off, but markets recovered. AI-related inflation and chip supply issues remain key concerns.

Nebius Group NV (NBIS) announced price increases for its on-demand GPU cloud services, effective October 1. Nvidia H100 instances will rise 17%, B300 GPUs 21%, and AMD EPYC Genoa CPUs 25%. This is the second price hike in months, with B300 instances up 56% cumulatively. NBIS shares rose 2% after the news.

Advanced Micro Devices (AMD) stock rose 4.3% to $534.47 after Piper Sandler reiterated an Overweight rating and $600 target, citing strong demand for CPUs and GPUs. AMD's Q3 revenue guidance is $13 billion, with the semiconductor industry projected to grow significantly by 2030. The broader market also gained post-Fed rate hike.

AMD stock rose nearly 3% in premarket trading on Thursday, driven by broader market strength in growth and technology stocks. Piper Sandler initiated coverage with an Overweight rating and a $600 price target, citing strong AI compute demand. AMD is trading near its 52-week high, with a Buy consensus rating and an average price target of $604.