AMD Hits $1 Trillion as AI Chip Boom Sends Taiwan Stocks to Record High

AMD is now worth $1 trillion, joining an elite club of companies that includes Nvidia, Apple, and Microsoft [246567]. The U.S. chipmaker's stock price hit a record high on Wednesday, driven by soaring demand for artificial intelligence processors [246567]. The milestone shows how the AI boom is reshaping the global technology industry [246567].

In a related development, AMD shares jumped 5% after a report said the company plans to raise chip prices by 10% [246489]. The report did not specify when the increase would start or which products would be affected, and AMD has not commented publicly on the claim [246489]. The news lifted other chip stocks as well, with Nvidia and Taiwan Semiconductor both rising slightly as investors bet that higher prices could signal strong demand across the industry [246489].

Taiwan's stock index, which is heavy with technology companies, reached its highest level ever and has risen more than 60 percent this year [247076]. The gains come as optimism about artificial intelligence lifts stock markets around the world [247076].

The AI boom is also driving demand for memory chips used in data centers. Prices for high-bandwidth memory, a specialized type of chip that AI systems need to process data quickly, have climbed sharply in recent months [244288]. Demand from AI data centers is the main driver as companies race to build and expand infrastructure that powers tools like chatbots and image generators [244288]. Supply cannot keep up because making high-bandwidth memory is complex and expensive, and manufacturers need years to build new production lines [244288]. Analysts expect the situation to worsen before it improves, meaning AI companies will likely pay even more for memory in the coming months [244288].

The trend matters beyond the tech industry. Higher memory costs could raise the price of AI services and slow the pace of new AI development worldwide [244288]. The shortage has already affected consumer electronics, with a global memory chip shortage leading to a £100 price increase on all iPhones, including older models [246263]. The cause is being called "RAMageddon," as the AI boom consumes every available memory chip for huge data centers [246263].

Investors are now watching whether AMD can hold its new valuation and whether the AI rally has more room to run [246567].