$Advanced Micro Devices(AMD)$ $Intel(INTC)$ $Micron Technology(MU)$ $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ Reuters is reporting that Intel and AMD are working on long-term CPU supply deals with major Chinese AI data center customers, mainly due to severe shortages and surging demand. Sources say CPU prices in China have already gone up more than 40% since the start of the year, with month-on-month increases over 10% for some high-end products.
CPUs have become the key bottleneck for AI inference and agentic workloads, and the supply crunch is really hitting now.
This situation looks a lot like the memory shortage that drove Micron's historic rally. AMD's CPUs are facing similar structural supply constraints. From where I stand, AMD stock could see a move comparable to what happened with Micron, potentially toward $1000.
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