AMD Shares Surge on Unconfirmed Price Hike Report

Shares of AMD (NASDAQ:AMD) are up 5% to $586.66 after a supply-chain report indicated the chipmaker plans to increase prices by 10% in the fourth quarter due to higher wafer costs at its foundry partner, Taiwan Semiconductor Manufacturing (NYSE:TSM).

The reported price increase would apply to AI accelerator chips, consumer graphics processors, and motherboard chipsets, but AMD has not confirmed the move.

NVIDIA (NASDAQ:NVDA) stock is up 0.7% to $223.72, while Taiwan Semiconductor Manufacturing's stock is up 1% to $440.92, tracking the AMD-led bid without a direct pricing catalyst of its own.

Analysts say that if the price increase sticks, it would be evidence of demand rather than a tax on it, but there is also risk that AMD's largest customers may buy fewer parts or build accelerators in house, which could lead to a reversal of the day quickly.