By Elsa Ohlen
AMD, Broadcom and Micron Technology rebounded Thursday after suffering another blow from President Donald Trump's trade policy and despite analysts lowering estimates due to restrictions on artificial-intelligence chips to China.
Shares of Advanced Micro Devices, or AMD, gained 1.3% to $89.44 in premarket trading Thursday. That follows a 7.4% drop Wednesday after news broke that U.S. exports of certain AI chips would now be subject to new licensing requirements.
While not an outright ban, it appears no licenses have been granted.
Broadcom rose 1.6% to $177.34 and Micron climbed 1.4% to $70.30. Qualcomm rose 1.6% to $137.87 while Nvidia gained about 0.5% to $104.99 in early premarket trading.
Products in the export restrictions would include AMD's MI308, Nvidia's H20, as well as any other chips with similar memory or bandwidth.
AMD said it expects to apply for licenses, but there are no assurances they'll be granted. The company also predicted an $800 million hit for inventory, purchase commitments, and related reserves.
"Clearly, we may need to wait for the Trump administration to finish its tariff and regulatory exploits before shares of Nvidia (and any semis company with sales into China) can get relief," Melius analysts led by Ben Reitzes said. "However, it will be good to finally get this China sales overhang behind us," he added, referring to the event as "whiplash strik[ing] again."
KeyBanc analyst John Vinh lowered his 2025 estimates on AMD revenue and earnings per share by 7% and 13% due to the export restrictions, maintaining a Sector Weight rating on shares.
On the flip side, Jefferies analysts led by Blayne Curtis highlighted multiple positive signals for AI demand, however, "don't see [Nvidia] stock working until these AI rules and tariff impacts are better understood."
Investors don't seem too optimistic. The iShares Semiconductor ETF has dropped over 20% so far this year but was up 1.4% early Thursday.
Write to Elsa Ohlen at elsa.ohlen@barrons.com
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April 17, 2025 07:09 ET (11:09 GMT)
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