AMD Faces Chip Supply Shortage but Sees Growth Potential
Advanced Micro Devices (NASDAQ: AMD) is experiencing strong demand for its chips that outpaces current production capabilities, according to CEO Lisa Su. Speaking in Taipei on October 6, she noted the supply chain remains tight due to unforecasted server CPU orders and emphasized plans to significantly increase capacity by 2027. AMD has made substantial commitments totaling $30.3 billion for wafer capacity, substrates, components, and cloud service deals since late March—more than doubling in six months. The company also announced over $10 billion in investments across its Taiwan supply chain to expand advanced packaging capabilities as part of a long-term strategy. Despite the risk of potential inventory gluts if demand slows, AMD is leveraging current shortages to secure future production capacity. Its data center segment has seen rapid growth with revenue increasing by 39% year-over-year in Q4 2025 and accelerating further into early 2026.
