Negative: AMD and NVIDIA face new export restrictions impacting stock prices, AMD shares dropped 7%.

From Nasdaq: 2025-04-16 15:00:00

Advanced Micro Devices (AMD) and NVIDIA face new licensing requirements to export chips to China, impacting their stock prices. China’s significant market share for both companies faces competition from local players. AMD shares dropped 7% and NVIDIA declined 6% due to the restrictions.
AMD’s Data Center revenues in 2024 showed strong growth, with EPYC instances increasing and demand for Instinct accelerators rising. The company’s partnership base and acquisitions, like Silo AI and ZT Systems, bolster its AI capabilities. However, AMD’s 2025 earnings estimates have trended downward.
Despite strong performance, AMD stock is overvalued with a stretched valuation. The stock is currently trading below the 50-day and 200-day moving averages, signaling a bearish trend. Investors may want to wait for a more favorable entry point to accumulate AMD stock, which currently holds a Zacks Rank #3 (Hold).
Zacks names a top semiconductor stock with significant growth potential, positioning it to capitalize on the increasing demand for AI, Machine Learning, and IoT technologies. With global semiconductor manufacturing projected to grow substantially, this stock offers a promising investment opportunity.