Advanced Micro Devices (AMD) hasn’t exactly had a smooth ride in 2026 so far. Despite its strong positioning in AI, the stock is still down roughly 4.85% year-to-date (YTD) and remains well below its 52-week high of $267.08, compared to the tech-led Nasdaq Composite Index ($NASX) fall of 7.89% YTD, as investors weigh valuation and competition risks in the semiconductor space. However, sentiment turned bullish when AMD surged 7.26% on March 25, following reports that AMD and Intel (INTC) plan to raise CPU prices by roughly 10% to 15%, signaling improving pricing power.

With price hikes expected to take effect in the coming months, revenue and margins could expand further in the upcoming quarters, strengthening the case for…