Advanced Micro Devices Inc (NASDAQ:AMD) shares are trading lower on Thursday morning. The stock is retreating after a 7.26% rally on Wednesday.

This volatility follows reports of looming price increases across the processor market.

Price Hikes On The Horizon

Reports indicate that both AMD and Intel Corp (NASDAQ:INTC) plan to raise CPU prices by 10% to 15%. Manufacturers cite tight semiconductor supply as the primary driver.

The semiconductor sector faces renewed pressure as shortages move beyond memory into processors.

According to a Wednesday report from Nikkei Asia, CPU scarcity has worsened recently. Since early 2026, tech giants like Apple Inc (NASDAQ:AAPL) and Tesla Inc (NASDAQ:TSLA) have warned that component limits are slowing production.

AI Demand Crowds Out CPUs

Rising AI demand is reshaping the market. Chipmakers now prioritize large customers like Nvidia Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN).

Consequently, PC makers such as HP Inc (NYSE:HPQ) and Dell Technologies Inc (NYSE:DELL) face widening supply gaps. Delivery times for some components have reportedly stretched to six months.

Market Sentiment And Risks

Geopolitical risks and material shortages, such as helium used in fabrication, continue to weigh on the broader sector’s stability.

Technical Analysis

AMD is trading 7.7% above its 20-day simple moving average (SMA), but 1.1% below its 100-day SMA, a mix that suggests short-term strength is running into a tougher intermediate trend line.

Shares are up 99.90% over the past 12 months and are currently positioned closer to their 52-week highs than lows.

The RSI is at 61.92, which sits in neutral territory. Meanwhile, MACD is at -0.6360 versus a signal line of -3.2191.

  • Key Resistance: $220.00
  • Key Support: $190.50

AMD Stock Price Activity: Advanced Micro Devices shares were down 1.67% at $216.60 during premarket trading on Thursday, according to Benzinga Pro data.

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