Advanced Micro Devices (AMD) stock rises over 2% on Trump tariff relief, outperforming Intel and Nvidia.

AMD's share price rose over 2% on Thursday, driven by a relief rally in the semiconductor sector following US President Donald Trump's latest tariff announcement. Trump exempted industry heavyweights from a 100% levy on chips and semiconductors, which boosted stocks of AMD, Intel, Nvidia, and other chipmakers. UBS analysts said the uncertainty has been removed, allowing investors to move on.

Advanced Micro Devices (AMD) shares surged by over 2% on Thursday, following a relief rally in the semiconductor sector sparked by U.S. President Donald Trump's latest tariff announcement. The president exempted major industry players from a 100% levy on chips and semiconductors, which significantly boosted the stocks of AMD, Intel, Nvidia, and other chipmakers.

Trump's announcement came after he touted Apple's commitment to invest an additional $100 billion in the U.S. over the next four years. The exemption applies to companies that are manufacturing in the U.S. or have committed to do so, which has been a major uncertainty for investors [1].

The relief rally was evident across global markets, with U.S. stock index futures rising and chipmakers experiencing significant gains. AMD's shares climbed 2.5%, Intel gained 2.1%, and Nvidia rose by 1.1% [2]. European chipmakers also joined the rally, with ASML, ASMI, and BE Semiconductor Industries climbing about 3% each [1].

Analysts at UBS commented that a major uncertainty has been removed, allowing investors to finally move on. This sentiment was echoed by other market participants who saw the exemption as a positive development for the semiconductor industry [1].

The tariff announcement comes amidst broader market optimism driven by expectations of policy easing by the Federal Reserve and growing hopes for AI spending by companies. However, investors are also watching for the initial jobless claims report and potential Fed Governor appointments, which could influence market sentiment [2].

The U.S. dollar remained lower against major peers, reflecting expectations of easier policy from the Federal Reserve. The benchmark 10-year U.S. Treasury yield was little changed at 4.2365%, while the two-year yield rose slightly to 3.7134% [2].

In commodities, spot gold added 0.3% to $3,376 an ounce, benefiting from the broader market sentiment [2].

References:
[1] https://m.economictimes.com/news/international/us/advanced-micro-devices-stocks-amd-share-price-rises-over-2-per-cent-thanks-to-trump-bonanza-what-to-expect-today/articleshow/123167653.cms?UTM_Campaign=RSS_Feed&UTM_Medium=Referral&UTM_Source=Google_Newsstand
[2] https://www.theglobeandmail.com/investing/markets/inside-the-market/market-news/article-premarket-world-markets-climb-after-a-rally-for-apple-leads-wall/