Advanced Micro Devices (AMD) stock rallied on Tuesday after President Donald Trump lifted his ban on artificial intelligence (AI) chip sales to China. The latest reports claim that AMD has gained permission to sell its MI308 chips to Chinese customers, despite concerns that this would benefit the country’s military and AI sectors.
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Investors will note that the Commerce Department hasn’t yet confirmed the lifting of the ban on sales of AI chips to China. However, AMD rival Nvidia (NVDA) has confirmed its ability to sell H20 chips to customers in the country.
President Trump’s reversal of the AI chip ban is likely tied to ongoing pressure from the tech industry. Nvidia CEO Jensen Huang has been among the figures who have publicly called on the U.S. President to relax restrictions around AI chip sales to China. It appears President Trump has taken that advice.
AMD Stock Movement Today
AMD stock was up 6.64% on Tuesday morning, extending a 29.15% rally year-to-date. However, the shares have still fallen 17.53% over the past 12 months. Today’s news comes with strong trading of AMD stock, with some 44 million shares having changed hands. This is closing in on the semiconductor company’s three-month daily average trading volume of roughly 48.49 million shares.
In related news, AMD stock received updated coverage from five-star Bernstein analyst Stacy Rasgon today. Rasgon reiterated a Hold rating and $95 price target, suggesting a 39.3% downside for the shares.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 25 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $135.97, representing a potential 13.37% downside for the shares.
