AMD drops over 3% pre-market due to Nvidia and Intel acquisitions

AMD drops over 3% pre-market due to Nvidia and Intel acquisitions

Advanced Micro Devices (NASDAQ: AMD) saw its shares drop by over 3% in pre-market trading today, September 12, 2025, following news of potential acquisitions by Nvidia (NASDAQ: NVDA) and Intel (NASDAQ: INTC). The market reaction comes amidst ongoing geopolitical tensions and regulatory challenges for the semiconductor industry.

The recent policy shifts surrounding AI chip exports to China have created a discernible hierarchy of winners and losers within the semiconductor industry, recalibrating strategies and market expectations. Advanced Micro Devices (NASDAQ: AMD), despite facing initial setbacks and significant financial charges, emerges as a cautious winner from the recent easing of restrictions. The approval to resume MI308 shipments to China, a market CEO Lisa Su has consistently identified as a "large opportunity," significantly improves the company's revenue outlook for the latter half of 2025. However, this comes at a novel cost: a 15% revenue share to the U.S. government, which introduces a new variable into AMD's profitability calculations for these specific sales .

Nvidia (NASDAQ: NVDA), a dominant player in the AI chip space, also stands to benefit from this policy recalibration. Having already secured approval for its H20 chip—a similarly "downgraded" version of its flagship AI accelerators for the Chinese market—NVIDIA (NASDAQ: NVDA) will likely see a more stable and predictable revenue stream from China. The parallel approval for AMD's MI308 suggests a standardized approach from the U.S. government, providing a clearer operational framework for both companies. The 15% revenue share stipulation will also apply to NVIDIA (NASDAQ: NVDA), making it a shared cost of doing business in a restricted yet vital market .

Conversely, smaller or emerging domestic Chinese AI chip manufacturers might be the primary losers in this scenario. While the "downgraded" nature of the MI308 and H20 chips still leaves a segment of the market open for high-end indigenous solutions, the renewed access to globally competitive silicon, even with limitations, could temper the urgency and investment in purely domestic alternatives for certain applications .

The market's reaction to AMD's share drop is likely influenced by the uncertainty surrounding potential acquisitions by Nvidia and Intel, which could impact AMD's market position and strategic direction. Investors are closely monitoring these developments and their potential impact on the company's future prospects.