Significant Chip Price Hike from AMD?
AMD plans to raise the price of its Instinct MI350 AI accelerator from $15,000 to $25,000 — nearly a 70% increase. Despite this hike, the chip will still be cheaper than Nvidia’s competing Blackwell B200 model. This move signals strong demand for AMD’s AI chips and could translate into better-than-expected quarterly results. Analysts highlight AMD’s growing competitiveness in the AI hardware segment, seeing the MI350 as a viable alternative to Nvidia’s high-priced solutions.
In terms of new investments, AMD expects the first chips manufactured in the U.S. by TSMC (in Arizona) to arrive by the end of the year. However, the company notes they will be 5–20% more expensive than their Taiwan-made counterparts. CEO Lisa Su defended the higher costs, emphasizing the importance of supply chain resilience — a lesson learned during the pandemic. She assured that chip quality will remain unchanged, and the decision is strategic rather than cost-driven. U.S. production gives AMD greater geographic diversification and stability amid geopolitical tensions.
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Create account Try a demo Download mobile app Download mobile appFollowing this news, AMD shares are up 4% today. Analysts expect GPU revenue to grow year-over-year in Q3 2025, despite the export ban on the MI308X model to China. Licensing issues and shipment timelines to China in the second half of the year remain in focus, but the overall outlook remains optimistic.
Tesla Signs Record-Breaking Deal 🎯
Meanwhile, Tesla confirmed a massive $16.5 billion semiconductor supply deal with Samsung. Elon Musk announced that the collaboration will involve production of Tesla’s next-generation AI6 chips at Samsung’s new Texas facility. These chips will power Tesla’s humanoid robot Optimus, autonomous vehicles, and AI data centers. Musk stated he will personally oversee production progress and emphasized Tesla’s direct involvement in optimizing manufacturing processes.
Tesla shares are also up 4% today. Investors see the agreement as a strategic move toward AI development and a success for Samsung. The deal is valid through 2033 and — according to Musk — may ultimately exceed the initial $16.5 billion value.
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