Advanced Micro Devices, Inc. (NASDAQ: AMD) is positioning for continued growth in the artificial intelligence sector, announcing plans to substantially increase chip supply for 2027. This move follows a period of significant expansion in production capacity throughout 2026.
CEO Lisa Su stated that the company is working with partners Foxconn, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM), and memory suppliers to secure the necessary CPU, GPU, advanced wafer, and memory capacity to meet demand. She noted that there is "very, very high demand for the next several years" and that the company needs more advanced wafer capacity.
AMD stock has surged more than 200% in 2026, pushing the company’s market value above $1 trillion for the first time in September. At the time of publication, shares were up 1.24% at $639.57, trading near the 52-week high of $645.46.
The company is also looking to capitalize on the rise of AI agents, which utilize both GPUs and CPUs. AMD’s latest EPYC processor is designed to handle the data processing and tool-use workloads associated with these agents. AMD has reportedly deployed millions of its CPUs at Meta Platforms Inc. (NASDAQ: META), and its processors are reportedly being used in agentic AI applications like Muse and OpenAI’s Dot.
Analysts, including Jordan Klein of Mizuho Securities USA Inc., noted that AMD has the largest market share in the cloud hyperscaler world for CPUs. However, Klein also pointed out a potential competitive threat, noting that NVIDIA Corp. (NASDAQ: NVDA) is expanding its data center platform with its Vera CPU, which could direct more CPU budgets toward NVIDIA. Klein also expects Meta to diversify its suppliers, potentially including AMD, NVIDIA, Intel Corp. (NASDAQ: INTC), Qualcomm Inc. (NASDAQ: QCOM), and Alphabet Inc. (NASDAQ: GOOG/GOOGL).
