AMD’s Monster 2026 Rally Gets Fresh Fuel From Lisa Su’s 2027 AI Supply Push

Advanced Micro Devices, Inc. (NASDAQ:AMD) is positioning for another leg of AI-driven growth as it expands chip supply, strengthens its server CPU business and competes more directly with NVIDIA Corp. (NASDAQ:NVDA) across data center workloads.AMD stock has surged more than 200% in 2026, pushing the chipmaker’s market value above $1 trillion for the first time in September as investors bet on growing demand for its AI accelerators and data center processors.AMD Plans Major 2027 Supply IncreaseCEO Lisa Su said AMD plans to substantially increase chip supply in 2027 after steadily expanding production capacity throughout 2026.“We’ve been able to increase our supply as we’ve gone through 2026, and we’re going to substantially increase our supply in 2027,” Su told reporters in Taipei, according to Reuters.AMD is working with Foxconn, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) and memory suppliers to secure enough CPU, GPU, advanced wafer and memory capacity to support expected demand.“There’s very, very high demand for the next several years. We can see very high demand, and so we need more advanced wafer capacity,” Su said.The longer planning horizon highlights how AI infrastructure demand is reshaping semiconductor supply chains. Su said AMD is now planning capacity three to five years ahead as customers commit to increasingly large data center deployments. See More: Top Value Stocks AI Agents Open a New CPU Growth OpportunityAMD could also benefit from the rise of AI agents, which can increase demand not only for GPUs used to train and run AI models but also for CPUs that handle data processing, tool use and virtual-machine workloads around those models.AMD EVP and Data Center Solutions Group GM Forrest Norrod said the company’s latest EPYC processor is well suited to that emerging workload.“AI needs CPUs for tool use, and Venice CPU was designed just perfectly for that sweet spot, incredible for the next generation of data processing,” Norrod told CNBC on Tuesday.AMD has steadily gained ground in server CPUs since launching its EPYC platform in 2017. Norrod credited that progress to the company’s execution under Su. “Under Lisa’s leadership for the last 12 years, it’s been a very different AMD,” he said.AMD has said Meta Platforms Inc. (NASDAQ:META) has deployed millions of its CPUs. Its processors are also reportedly being used in agentic AI applications, including Muse and OpenAI’s Dot.Analysts See Upside — but NVIDIA LoomsJordan Klein, managing director at Mizuho Securities USA Inc., said AMD appears well positioned to benefit as AI workloads drive additional CPU demand.“AMD is probably getting the most of this because they have the largest market share in the cloud hyperscaler world for CPUs, best product,” Klein told CNBC.However, Klein also pointed to a potentially significant competitive threat. Hyperscalers already spending heavily on NVIDIA GPUs could direct more of their CPU budgets toward NVIDIA as the chipmaker expands its data center platform with its Vera CPU.That could intensify competition for AMD as AI infrastructure evolves from individual chips toward tightly integrated computing systems combining CPUs, GPUs, networking and memory.Klein also expects Meta to diversify its suppliers rather than depend heavily on any single chipmaker. He cited AMD, NVIDIA, Intel Corp. (NASDAQ:INTC), Qualcomm Inc. (NASDAQ:QCOM) and Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) unit Google among potential providers.AMD Price Action: Advanced Micro Devices shares were up 1.24% at $639.57 at the time of publication on Tuesday. The stock is trading near its 52-week high of $645.46, according to Benzinga Pro data.Photo via Shutterstock Read Also: Why AMD Is Spending $8.2 Billion On World Labs