Advanced Micro Devices Inc (NASDAQ:AMD) stock trended on Thursday as traders weighed the company's more than $10 billion investment plan in Taiwan.

AMD said it plans to invest more than $10 billion across the Taiwan ecosystem to expand strategic partnerships and scale advanced packaging manufacturing for next-generation AI infrastructure.

The company tied the effort to the demand for rack-scale AI systems and highlighted work spanning chiplet architectures, high-bandwidth memory integration, 3D hybrid bonding, and system design.

It is deepening its partnership with Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) as it ramps production of its next-generation EPYC server processors to meet rising demand for AI and cloud computing infrastructure.

AMD Expands EPYC Production With TSMC

AMD said its next-generation EPYC processor, code-named "Venice," has entered production in Taiwan using TSMC's advanced 2nm manufacturing technology.

The company also plans to expand production to TSMC's Arizona facility in the future.

It described "Venice" as the first high-performance computing chip in the industry to enter production on TSMC's 2nm process.

AMD Targets Growing AI Infrastructure Demand

CEO Lisa Su said AMD is working closely with TSMC to bring new AI computing products to market faster as customers scale AI and cloud infrastructure.

AMD said the growing use of AI, including more advanced AI agents, is increasing the importance of CPUs in managing data movement, networking, storage, security, and overall data center operations.

The company added that demand for EPYC processors continues to rise across cloud, enterprise, high-performance computing, and AI deployments.

AMD Diversifies Manufacturing Footprint

AMD said producing "Venice" in Taiwan while planning future production in Arizona reflects its effort to build a more geographically diversified manufacturing network.

The company believes this broader production footprint will help support customers deploying AI infrastructure on a larger scale globally.

TSMC Supports AMD's Long-Term Roadmap

TSMC Chairman and CEO C.C. Wei said the companies' collaboration combines TSMC's manufacturing technology with AMD's chip design expertise to support the next generation of AI and high-performance computing.

AMD also plans to use TSMC's 2nm technology for its future "Verano" EPYC processors, which will focus on improving computing performance and energy efficiency for AI and cloud workloads.

U.S. index ETFs are modestly higher in premarket trading—Nasdaq (QQQ) is up 0.07%, and the S&P 500 (SPY) is up 0.11%—which makes AMD's dip look more stock-specific than purely macro-driven. In other words, the market is digesting the size, timing, and execution risk of a big manufacturing-and-partnership push even as the broader tone is steady.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the August 4, 2026 (estimated) earnings report.

  • EPS Estimate: $1.55 (Up from 48 cents YoY)
  • Revenue Estimate: $11.28 Billion (Up from $7.68 Billion YoY)
  • Valuation: P/E of 149.2x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $446.76. Recent analyst moves include:

  • Evercore ISI Group: Outperform (Raises Target to $579.00) (May 19)
  • Citigroup: Neutral (Raises Target to $460.00) (May 18)
  • Daiwa Capital: Downgraded to Outperform (Raises Target to $500.00) (May 13)

AMD Price Action: Advanced Micro Devices shares were down 0.96% at $443.30 during premarket trading on Thursday. The stock is approaching its 52-week high of $469.21, according to Benzinga Pro data.

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