What's Going On With AMD Stock?

Advanced Micro Devices, Inc AMD stock is trading higher Wednesday amid reports that CEO Lisa Su provided a glimpse into the semiconductor giant's perspective on AI. 

Su emphasized the transformative impact of AI, comparing its significance to major technological shifts like the advent of the internet and mobile phones. She also expressed the prospects of PC gaming, console gaming, and cloud gaming, the Verge cites from the Code Conference 2023.

Su voiced AMD's capability of building custom chips amid reports of its collaboration with Microsoft Corp MSFT. 

Su also confirmed the possibility of making AMD chips available to Azure customers in an invisible way. She acknowledged that chip supply and demand are in a good place.

AI is 10x, 100x more impactful than phones, the internet, and PCs. Su looks at AI on a 10-plus-year cycle with immense scope for improvement.

Separate reports indicate the supply chain dynamics are taking a toll on contract chipmaker Taiwan Semiconductor Manufacturing Company Ltd TSM, which might have to raise the price of its AI chips. 

If TSMC boosts prices to pass on the cost burden, it will translate into higher prices for AMD and Nvidia Corp NVDA chips.

China is also struggling with its efforts to bolster its semiconductor industry due to the current economic downturn. The country is already struggling with an underground market offering Nvidia AI chips at inflated prices.

Price Action: AMD shares traded higher by 0.76% at $96.69 on the last check Wednesday.