Advanced Micro Devices (AMD) shares experienced a significant 5.02% plummet during intraday trading on Friday. The decline can be attributed to several factors, as the competition in the semiconductor industry intensifies and concerns arise over potential chip export restrictions.
One key factor contributing to AMD's share price drop is the increasing competition from rival chipmakers like Nvidia. Reports indicate that Nvidia's AI chips and data center GPUs are gaining significant traction, potentially posing a threat to AMD's market share in these segments. Additionally, Intel's resurgence in the CPU market could further intensify the competitive landscape for AMD.
Another major development impacting AMD's stock is the looming possibility of new chip export restrictions from the Biden administration. According to reports, the outgoing administration plans to impose a final round of restrictions on AI chip exports, potentially affecting AMD's ability to sell its products to certain countries or companies. This uncertainty surrounding trade policies has caused investor apprehension and weighed on AMD's stock.
