Advanced Micro Devices, Inc. (NASDAQ:AMD) shares are trading higher by 3.2% to $98.20 during Monday’s session as the U.S. imposed its latest round of semiconductor export restrictions on China, a move that could shift demand for advanced chip technologies toward global leaders like AMD.
The Biden administration's measures, which target 140 Chinese entities and restrict access to cutting-edge memory chips, chipmaking tools and AI-related technologies, are part of a broader strategy to limit China's tech advancements.
What To Know: AMD, a leader in high-performance computing, graphics and AI semiconductors, is potentially positioned to benefit from these developments. The company's central processing units (CPUs), graphics processing units (GPUs) and adaptive computing solutions cater to markets ranging from data centers to gaming and artificial intelligence—areas heavily impacted by the new U.S. restrictions.
While NVIDIA Corp (NASDAQ:NVDA) has dominated the AI GPU segment, AMD has been gaining ground with its MI300 series accelerators, tailored for AI workloads and high-bandwidth memory-intensive applications.
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As Chinese firms face restrictions on acquiring Nvidia's H100 and A100 GPUs, AMD's alternative offerings may see increased demand, particularly in countries looking to replace China as hubs for AI and semiconductor advancements.
The sanctions also restrict exports to non-Chinese manufacturers producing in nations like Taiwan and South Korea, likely boosting reliance on U.S.-based suppliers like AMD. With AMD's robust product portfolio and expanding AI capabilities, the company is well-positioned to capture market share in the reshuffled global semiconductor supply chain.
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Is AMD A Good Stock To Buy?
An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Advanced Micro Devices‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.
These are known as capital allocation programs. Advanced Micro Devices does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.
Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Advanced Micro Devices will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.
According to data from Benzinga Pro, AMD has a 52-week high of $227.30 and a 52-week low of $116.37.
