What's Going On With AMD Shares

Advanced Micro Devices AMD shares are trading lower by 1.7% to $103.36 during Wednesday's session. Semiconductor stocks have been highly volatile this week due to the Biden administration's announcement to halt shipments of advanced AI chips to China.

What Happened?

The U.S. government has introduced new regulations to stop China from using American AI technology for military purposes. These rules include restrictions on exporting chips to China, Iran and Russia, and the blacklisting of two Chinese chip manufacturers.

The goal is to limit China's access to chips that could enhance its military capabilities while trying to minimize damage to its economy, according to Commerce Department Secretary Gina Raimondo.

See Also: U.S. Fires Another Shot At China's AI Aspirations

Why This Matters To AMD Investors

AMD is a semiconductor company that operates in global markets, including China. Restrictions on chip exports to China can significantly impact AMD's revenue from its Chinese customers and partners.

China is a large and growing market for semiconductor products, and any disruption in trade with China can harm AMD's financial performance.

AMD also relies on a complex global supply chain for its semiconductor products. New export limitations and blacklisting of Chinese chip manufacturers could disrupt AMD's supply chain, leading to potential shortages of critical components and increased production costs.

This can negatively affect AMD's profitability and stock performance.

According to data from Benzinga Pro, AMD has a 52-week high of $132.83 and a 52-week low of $55.71.