Advanced Micro (AMD) Plunges 7.34% Amid NVIDIA Export Restrictions

On April 16, 2025, Advanced Micro's stock experienced a significant drop of 7.34% in pre-market trading, reflecting investor concerns and market volatility.

Advanced Micro's stock decline can be attributed to several factors, including the recent announcement by NVIDIA regarding export restrictions on its H20 chips to China. This move by NVIDIA, which requires export licenses for certain high-performance chips, has raised concerns about the broader impact on the semiconductor industry, including Advanced Micro.

Additionally, the U.S. Department of Commerce's planned investigation into the national security implications of importing semiconductors and semiconductor equipment has added to the uncertainty. This investigation, set to be announced on April 17, 2025, could lead to increased tariffs and regulatory hurdles for companies operating in the semiconductor sector.

Advanced Micro, like other semiconductor giants, is also facing challenges related to supply chain resilience. The company has been expanding its manufacturing capabilities in the United States, including the acquisition of ZT Systems, to ensure a stable supply chain for its AI servers and other products. This strategic move is aimed at mitigating risks associated with global supply chain disruptions.

Overall, the combination of export restrictions, regulatory uncertainties, and supply chain challenges has contributed to the recent decline in Advanced Micro's stock price. Investors are closely monitoring these developments as they assess the company's future prospects in the rapidly evolving semiconductor industry.