What's Going On With AMD Stock Friday?

U.S. chip designer stocks Advanced Micro Devices, Inc AMD and Nvidia Corp NVDA are trading lower Friday amid reports of the U.S. intensifying its semiconductor technology sanctions against China.

Reportedly, the U.S. is looking to close the loophole that helped Chinese companies access American artificial intelligence (AI) chips through overseas units.

Also Read: TSMC Seeks Permanent US Approval As Geopolitical Tensions Rise, Aims to Secure Chip Supplies

American chip companies, including Nvidia, had protested against U.S. tech sanctions, citing a double whammy of harming their businesses and inadvertently boosting China's independent chip industry.

In August, the U.S. urged the chip designers to restrict shipments of AI chips beyond China to other regions.

Interestingly, this week, analysts indicated a growing potential for AMD and Intel Corp INTC despite Nvidia killing the AI frenzy by identifying the AI opportunities in advance, helping it control over 75% of the AI GPU market. 

Meanwhile, a report flagged Nvidia's plans to shift to a one-year release cadence, implying its plans for faster launch of new GPUs. 

It's also speeding up the development of its Quantum Infiniband and Spectrum Ethernet switching portfolios. 

Nvidia's move could pose a potential problem for vendors like AMD and Intel, which are still on a two-year release cadence for GPUs and AI accelerators.

Price Action: AMD shares traded lower by 2.89% at $105.65 on the last check Friday.