AMD Gains On US-China Trade Pause And Wall Street Optimism For Second-Half Chip Sales

Advanced Micro Devices AMD stock trended on Wednesday amid investor optimism surrounding the Washington—Beijing truce.

Late Monday, the United States and China extended their trade truce by 90 days, narrowly avoiding a tariff escalation that could have intensified tensions between the world’s two largest economies. President Donald Trump signed an executive order extending the pause until November 10, with Beijing matching the extension.

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The agreement maintains Washington’s 30% levy on Chinese imports and China’s 10% tariff on U.S. goods.

The extension allows negotiators to address trade imbalances, national security concerns, and technology restrictions. China called on the U.S. to remove “unreasonable” trade curbs, emphasizing cooperation to stabilize semiconductor supply chains. The truce comes shortly after the U.S. partially eased export restrictions, allowing companies like AMD and Nvidia NVDA to sell certain chips to China in exchange for a revenue share with the U.S. government — a move that has drawn criticism. Despite the pause, U.S.-China trade volumes remain subdued, with imports and exports falling sharply in the first half of 2025.

In fiscal 2024, China accounted for 24.2% of AMD’s net sales, up from 15.1% the prior year. In the most recent quarter, AMD generated $7.69 billion in revenue, a 32% year-over-year increase that exceeded estimates, while adjusted earnings of 48 cents per share fell short of forecasts. Gross margin declined to 43% due to $800 million in charges related to U.S. export controls.

CEO Lisa Su projects strong growth in the second half of 2025, driven by the ramp-up of Instinct MI350 and market share gains for EPYC and Ryzen products. For the third quarter, AMD expects revenue of approximately $8.7 billion, plus or minus $300 million, which exceeds analyst targets. Shares have climbed 45% year-to-date as Big Tech giants continue to invest in their AI ambitions, fueling demand for AI chips.

Price Action: AMD stock is trading higher by 2.72% to $179.70 premarket at last check on Wednesday.

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