Why Is AMD Stock Down Today?

Why Is AMD Stock Down Today?

Advanced Micro Devices Inc AMD shares are trading lower Thursday after the U.S. government imposed export restrictions on the chipmakers.

In a regulatory filing Wednesday night, NVIDIA Corp NVDA said the U.S. government on Aug. 26 informed the company that it has imposed a new license requirement for any future exports to China in order to address the risk that some products could be used for military purposes in China and Russia.

Nvidia expects that the new license requirement could result in a loss of $400 million in potential sales to China in the current quarter. The company previously guided for $5.9 billion in revenue for the third quarter, plus or minus 2%. 

Related Link: Why Nvidia Stock Is Falling Today

According to a Reuters report, AMD has also been told to stop exporting one of its chips to China. AMD reportedly said the new license requirements prevent it from shipping its MI250 chips to China, but it believes the MI100 chips won't be affected. The chipmaker said it doesn't expect the new requirements to have a material impact on its business.

AMD Price Action: AMD has a 52-week high of $152.42 and a 52-week low of $71.60.

The stock was down 2.56% at $82.70 at press time, according to Benzinga Pro.

Photo: courtesy of AMD.

Posted In: premarket tradingwhy it's movingNewsGlobalMoversTrading Ideas