Core Viewpoint - Advanced Micro Devices, Inc. (NASDAQ: AMD) stock experienced a decline of over 7% following the announcement of chip restrictions in China, yet it is maintained with a strong buy recommendation for long-term investment [1]. Company Analysis - The stock's recent performance is influenced by geopolitical factors, specifically restrictions imposed by China on semiconductor technology [1]. - The recommendation for a strong buy indicates confidence in AMD's long-term growth potential despite short-term volatility [1]. Industry Context - The technology sector, particularly in semiconductors, is facing challenges due to regulatory changes and geopolitical tensions, which can impact stock performance [1]. - The analyst's background in navigating various market cycles, including the dot-com bubble and the recent AI boom, suggests a deep understanding of the industry's dynamics and potential for recovery [1].

Buying and holding solid stocks for a long time is a tried-and-tested way of making money in the stock market, as this strategy helps investors capitalize on secular growth opportunities and disruptive trends while also allowing them to benefit from the power of compounding.This explains why an investment of $1,000 in shares of Advanced Micro Devices (AMD -1.65%) a decade ago would now be worth more than $33,500. And that's despite the sharp pullback in the company's shares over the past month. AMD has sign ...

Advanced Micro Devices (NASDAQ: AMD ) stock has just fallen more than 7% in after-hours trading. The main reason was the news about Nvidia ( NVDA ), which reported that it would need a " special license " to exportEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect! Assoc ...

Group 1: Stock Performance - AMD stock price has dropped significantly, resulting in a market cap decline from $379 billion in 2024 to $134 billion today, a total loss of $245 billion [1] - The stock has retreated to its lowest level since May 2023, indicating a prolonged downtrend [1] Group 2: Market and Trade Dynamics - The decline in AMD's share price is attributed to escalating trade tensions between the United States and China, including a pause in Boeing deliveries ordered by Beijing [2] - The Trump administration's request for chip companies to limit sales of less advanced products to China has further impacted AMD [2] Group 3: Business Impact and Revenue - NVIDIA has projected a $5.5 billion impact on its business due to trade curbs, and AMD has also indicated that these restrictions will significantly affect its operations this year [3] - Concerns about demand from data centers are emerging, with large companies like Microsoft pausing operations, which may extend to others like Amazon and Google [4] Group 4: Segment Performance - AMD's data center business is a key growth driver, with revenue increasing by 69% to $3.8 billion in the fourth quarter, while operating income reached $1.157 billion [6] - The client segment, which includes Ryzen chips, saw a revenue increase of 58% to $2.3 billion, but revenue from gaming and embedded businesses fell by 59% and 13%, respectively [7] Group 5: Valuation Metrics - AMD is currently considered undervalued, with a forward P/E ratio of 34.5, significantly lower than its five-year average of 94, and a non-GAAP PE ratio of 19, below its historical level of 50 [8] Group 6: Technical Analysis - The AMD share price has fallen below critical support levels, including $133 and $93.56, with indicators suggesting a potential continued decline [12][13]

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Silicon Valley chip maker Advanced Micro Devices (AMD) told regulators that the US might not grant newly required licenses for chips exported to China, hitting the company's bottom line. Chip developer Advanced Micro Devices (AMD) on Wednesday said it expects new US licensing requirements for semiconductors exported to China to ...

Macro pressures also weighed on AMD stock today Due to new U.S. policies, AMD will require an export license in order to sell its MI308X artificial intelligence (AI) processor into the Chinese market. Because it's unlikely that the export license will be granted, the company is essentially barred from selling the processor to Chinese customers and anticipates taking an $800 million loss on inventory. Adding another potential bearish catalyst, TSMC will reportedly raise the price on its 4nm chips by 30% in r ...

Advanced Micro Devices (AMD) chips, MI308 and equivalents, now face new licensing requirements to export to China. Per Reuters, AMD’s MI308 and NVIDIA’s (NVDA) H20 artificial intelligence (AI) chips fall under the latest restrictions as the United States looks to maintain its edge in the AI race amid the backdrop of increasing tariffs and trade war. AMD shares were down roughly 7% in pre-market trading, while NVIDIA declined approximately 6% today.China is an important market for both AMD and NVIDIA. China ...

Thanks to its size and the contrast between the regular session endorsement and the after-hours hit, Nvidia (NASDAQ: NVDA) has been making headlines on April 16 as President Donald Trump banned the shipping of advanced semiconductors to China.Despite drawing much less attention, Advanced Micro Devices (NASDAQ: AMD) has been hit just as hard. The firm revealed that the new measure will cost it approximately $800 million, and AMD shares plunged 6.35% in the first hours of the Wednesday session. At press time, ...

Lisa Su, CEO of AMD, attends the Artificial Intelligence Action Summit at the Grand Palais in Paris, Feb. 10, 2025.Shares of Advanced Micro Devices slid more than 5% on Wednesday after the company said it could incur charges of up to $800 million for exporting its MI308 products to China and other countries."The Company expects to apply for licenses but there is no assurance that licenses will be granted," AMD said in the filing with the Securities and Exchange Commission.The new U.S. license requirement, w ...

Nvidia CEO Jensen Huang delivers the keynote for the Nvidia GPU Technology Conference at the SAP Center in San Jose, California, on March 18, 2025.Technology stocks declined Wednesday, led by a 5% drop in Nvidia, as the chipmaking sector signaled that President Donald Trump's sweeping tariff plans could hamper demand and growth.Nvidia revealed in a filing Tuesday that it will take a $5.5 billion charge tied to exporting its H20 graphics processing units to China and other countries and said that the governm ...