Why Is AMD Stock Jumping Over 2% Premarket Today?

• Su is visiting Taiwan after a trip to China.
• On Thursday, AMD announced a $10 billion investment into the region's chip ecosystem.
• Stocktwits sentiment for AMD has fallen this week and was ‘extremely bearish’ as of early Friday.

Advanced Micro Devices shares gained 2.5% in early premarket trading on Friday, setting up for a third day of gains, amid fresh signals of a ramp-up in manufacturing.

The company’s chief executive, Lisa Su, who is visiting Taiwan to meet with suppliers, said on Friday that the company is working with Taiwan-based partners to ramp up production capacity as stronger-than-expected demand is squeezing the global CPU market, Reuters reported.

Speaking in Taipei after a visit to China, ​Su said she had met AMD's largest customers in China and globally and came to Taiwan to ‌ensure supply capacity could support a significant increase in CPU production, according to the report.

“The overall CPU market has had ​significantly higher demand than any of us predicted a year ago,” Su was quoted as saying, adding that demand is surging due to higher AI inference and agentic AI-related workloads. “I would say the CPU market is ​tight.”

She indicated that AMD was ramping up capacity quickly and expected supply to increase every quarter this ⁠year, with significantly more supply planned for 2027 and beyond.

Cloud companies are increasingly shifting from GPUs to CPUs for AI workloads, a trend Nvidia highlighted during its earnings call earlier this week. AMD is one of the world’s biggest suppliers of CPUs and a chief competitor to Nvidia in the broader semiconductor space.

AMD’s Taiwan Push

The development comes a day after AMD announced a $10 billion investment across the Taiwan ecosystem to expand strategic partnerships and scale advanced packaging manufacturing for next-generation AI infrastructure.

AMD announced that its next-generation EPYC data center processor, code-named “Venice,” has entered production at TSMC in Taiwan using the advanced 2-nanometer manufacturing process, with future production also planned in Arizona. 

The 2 nm process allows chips to pack in more transistors, improving performance and energy efficiency, and makes “Venice” the first high-performance computing chip to reach production on TSMC’s latest node.

Retail View On AMD

On Stocktwits, retail sentiment for AMD has fallen throughout the week and was ‘extremely bearish’ as of early Friday, partly due to recent sharp gains in the stock, although optimism was building again following the latest announcements.

“$AMD looks ready to go on another big run,” a trader said.

Another wrote: “Lisa Su is visting Taiwan now. During her Taiwan visit this week, Lisa Su confirmed that AMD’s next-generation ‘Venice’ server CPU roadmap will move onto TSMC’s advanced 2nm process technology. Multiple reports from Taipei say AMD is accelerating its 2nm roadmap because of exploding AI and data-center demand. $500 is coming!”

As of their last close, AMD shares are up 110% year to date.

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