Stock Market Today, March 25: Advanced Micro Devices Rises After Reports of CPU Price Increases

Today’s Change

(7.26%) $14.90

Current Price

$220.27

Advanced Micro Devices (AMD +7.26%), a designer of microprocessors and graphics chips, closed at $220.27, up 7.26% Wednesday after reports highlighted CPU price hike plans, robust AI infrastructure demand. CPU pricing power headlines and optimism about new AI accelerators and partnerships are also supporting the rally, and investors are watching how these trends translate into April earnings and guidance for AI infrastructure revenue.

The company’s trading volume reached 47.2 million shares, which is about 31% above its three-month average of 36 million shares. Advanced Micro Devices went public in 1980 and has grown 6893% since its IPO.

How the markets moved today

The S&P 500 (^GSPC +0.54%) added 0.54% to finish Wednesday at 6,591.9, while the Nasdaq Composite (^IXIC +0.77%) climbed 0.77% to close at 21,929.83. Among semiconductors, Nvidia (NVDA +1.95%) closed at $178.68, up 1.99%, while Intel (INTC +7.06%) finished at $47.18, rising 7.08% as investors reassessed AI and CPU prospects across the group.

What this means for investors

Advanced Micro Devices shares rose following reports of planned CPU price increases, indicating stronger pricing power amid robust AI infrastructure demand. The company’s ability to raise prices suggests tighter supply conditions and a stronger position in core markets, while continued momentum in AI-focused products and a large accelerator order tied to AI deployments reinforce its role in meeting expanding data center demand.

Moderately bullish trading flows and increased options activity further supported the stock’s gains as investors positioned around the stock. Investors will be monitoring whether higher pricing and sustained AI demand will lead to margin expansion and stronger guidance in upcoming earnings.

Eric Trie has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool has a disclosure policy.

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