AMD Flags $800 Million Risk From New US Chip Export Rules As China Tariffs Add Pressure

On Wednesday, Advanced Micro Devices, Inc AMD disclosed that it had completed its initial assessment of a new license requirement implemented by the Trump administration for the export of certain semiconductor products to China (including Hong Kong and Macau) and D:5 countries, or to companies headquartered or with an ultimate parent in such countries (the “Export Control”).

The Export Control applies to the company’s MI308 products.

AMD expects to apply for licenses but there is no assurance that licenses will be granted.

Also Read: China Hits US-Made Chips With Tariffs, But Those Outsourcing To Taiwan Semiconductor Exempt

It expects that the Export Control may incur up to approximately $800 million in inventory, purchase commitments, and related reserves.

AMD stock tanked 46% in the last 12 months as it grappled with rivalry from Nvidia Corp NVDA.

AMD chief Lisa Su confirmed Tuesday that the company will manufacture more AI servers in the U.S. and begin chip production at Taiwan Semiconductor Manufacturing Co’s TSM Arizona facility.

President Donald Trump shared plans to slap tariffs on imported semiconductors on Sunday. He stressed the country’s focus on the domestic production of chips and semiconductors.

Wedbush analyst Daniel Ives cited AMD as among the vulnerable tech companies, including Apple Inc AAPL and Nvidia, after China’s finance ministry announced a 34% tariff on all goods imported from the U.S., effective April 10, in response to the U.S. administration’s 54% duties.

Jefferies analysts expect the tariffs to continue to put downward pressure on semiconductor stocks, including AMD.

Advanced Micro Devices Stock Prediction For 2025

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Advanced Micro Devices have an average 1-year price target of $148.95, representing an expected upside of 66.26%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Advanced Micro Devices, while 13 analysts have bullish ratings. The street high price target from Rosenblatt is $250.0, while the street low from Citigroup is $100.0.

Price Action: AMD stock is down 6.00% at $89.57 at the last check on Wednesday.

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