Advanced Micro Devices (AMD) finds itself at a critical juncture, balancing a significant potential order against a backdrop of supply chain concerns and internal selling pressure. The company’s strategic moves across Asia and the United States paint a picture of a semiconductor giant actively securing its future, yet facing immediate headwinds.
A Major Asian AI Deal in the Works
Recent discussions between AMD CEO Lisa Su and Upstage CEO Sung Kim in Seoul have advanced negotiations for AMD to supply 10,000 MI355 AI accelerators to the South Korean AI startup. This prospective deal represents a strategic win for AMD’s Instinct GPU family, offering tangible proof of its competitiveness in the crucial Asian market against rival Nvidia.
The context of this potential agreement is notable. Upstage is a participant in South Korea’s state-sponsored “AI Squid Game” competition, which aims to identify the nation’s top foundational AI models by early 2027. With $157 million in funding to date, Upstage plans to use the MI355X chips—each equipped with 288 GB of HBM3E memory—to develop a language model boasting roughly 200 billion parameters.
Supply Chain Strengths and Vulnerabilities
Concurrently, AMD is working to fortify its supply lines. On March 18, the company signed a memorandum of understanding with Samsung Electronics to collaborate on next-generation HBM4 memory. This partnership is designed to secure access to advanced high-bandwidth memory. However, a significant threat looms: 93.1% of Samsung Electronics’ union members have voted to strike. A walkout at the Pyeongtaek campus, potentially beginning in May 2026, could severely disrupt production.
In a separate move within the United States, AMD has joined other chipmakers in securing capacity at TSMC’s planned Fab 4 facility in Arizona. Slated to feature 2-nanometer technology, this plant is not expected to be operational until approximately 2030.
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Market Performance and Insider Activity Contrast with Fundamentals
Despite the promising news of a major deal, AMD’s shares declined by approximately 2% at the start of the week. The stock continues to trade significantly below its 50-day moving average of around €183. Compounding this pressure, company insiders have sold shares worth a total of about $50 million over the past 90 days.
Institutional interest presents a mixed picture. Westview Investment Advisors established a new position in Q4 2025, purchasing 11,132 shares valued at roughly $2.38 million—a relatively modest entry. This quarter, however, AMD reported robust financial results, with revenue reaching $10.3 billion, a 34% year-over-year increase.
Product Developments and Competitive Pressures
On the consumer front, AMD has released the FSR SDK 2.2, which adds support for FSR 4.1 and Ray Regeneration 1.1. These machine learning-enhanced features are tailored for the upcoming RDNA 4 architecture. Meanwhile, competitive pressure from Intel’s new product launches has pushed the price of AMD’s Ryzen 7 9800X3D to a new low of around $420.
The company is currently managing a complex array of simultaneous challenges and opportunities: a promising large-scale order in Asia, supply chain risks from a potential Samsung strike, and internal selling pressure. Whether the Upstage deal is finalized will likely be a key sentiment driver for AMD’s equity in the coming weeks.
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