Shares of semiconductor giants Advanced Micro Devices (AMD) and Intel Corporation surged on March 25, 2026, following reports of planned price increases across their central processing unit (CPU) product lines. AMD's stock rose 6.6%, while Intel gained 7.6%, as investors interpreted the hikes as a sign of resilient demand and pricing power amid ongoing supply constraints.
The price increases, reported by Nikkei Asia, are set to average between 10% and 15%, with some products seeing even steeper hikes. Intel's increases are expected to take effect from March, with AMD's following in April. Notably, this marks several rounds of price increases since the start of the year, highlighting a sustained tightness in the supply-demand balance for processors.
The pricing power comes against a backdrop of significant supply chain challenges. Delivery lead times for CPUs have extended dramatically, from one to two weeks previously to an average of eight to twelve weeks, with some cases stretching as long as six months. This is putting pressure on server manufacturers and other customers who rely on timely access to these components.
In addition to the pricing news, AMD is reportedly in advanced talks to supply 10,000 of its MI355 AI accelerators to Upstage, a South Korean AI startup. While unconfirmed, the size of the potential deal underscores the growing demand for AI infrastructure. AMD's data center business has been a key growth driver, recently underscored by an expanded strategic partnership with Meta to deploy 6 gigawatts of AMD GPUs.
Intel received additional momentum from the launch of its enterprise-focused Core Ultra Series 3 chips, built using its advanced 18A process technology. This signals progress in the company's strategy to strengthen its in-house manufacturing capabilities and compete in the foundry business.
The broader semiconductor rally was also fueled by geopolitical developments, including reports of a U.S.-drafted plan to halt fighting in the Middle East, which lifted equity markets and provided relief from energy-driven inflation concerns.
