U.S. to implement new tariffs on Chinese semiconductors beginning June 2027
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2025
0mins
Source: SeekingAlpha
New Tariffs on Chinese Semiconductors: The U.S. plans to impose tariffs on Chinese-made semiconductors starting June 23, 2027, following a Section 301 investigation into China's practices in the semiconductor industry.
China's Response: The U.S. Trade Representative sought consultations with China regarding these issues, but China declined to engage in discussions.
Investigation Findings: The investigation concluded that China's efforts to dominate the semiconductor industry are unreasonable and hinder U.S. commerce, making the situation actionable.
Impact on Semiconductor Stocks: The article mentions several semiconductor stocks that could be affected, including NVIDIA, AMD, and Broadcom, highlighting their potential growth in the AI sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
36 Analyst Rating
27 Buy
9 Hold
0 Sell
Strong Buy
Current: 205.940
Low
200.00
Averages
284.10
High
377.00
Current: 205.940
Low
200.00
Averages
284.10
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AMD Data Center Revenue Accelerates Growth
- Data Center Revenue Growth: AMD's data center revenue increased by 39% year-over-year in Q4 2025, a significant acceleration from 22% in Q3, indicating the company's recovery potential in this area, although the overall growth rate remains below the management's target of 60%.
- Market Share and Competition: AMD's stock rose approximately 60% in 2025, but experienced a pullback after the Q4 earnings announcement, with the current P/E ratio dropping from nearly 40 to 31, reflecting a market reassessment of its valuation, especially compared to rival Nvidia, which trades at a P/E of 24.
- Chinese Market Recovery: With the Trump administration allowing exports to China, AMD's sales are starting to rebound, a trend expected to significantly boost revenue throughout 2026 and beyond, further driving growth in its data center business.
- Long-Term Growth Outlook: AMD's five-year guidance released in November projected a 60% CAGR for the data center division and a 35% overall CAGR for the company, and while Q4 slightly missed these projections, it still shows strong progress toward these goals, with analysts expecting revenue growth of 34% and 37% for 2026 and 2027, respectively.
See More
Nvidia Set to Report Strong Earnings with Promising Guidance
- China Market Recovery: Following the Trump administration's ban on Nvidia chip exports to China in April 2025, Nvidia is expected to resume exports, and if first-quarter revenue expectations reach $8 billion, it could lead to unexpected growth, significantly boosting market confidence.
- Surge in AI Giants' Investment: Major clients of Nvidia, including Alphabet, Amazon, and Meta, have announced capital expenditure plans for 2026, with expected spending of $175 billion to $185 billion, $200 billion, and $115 billion to $135 billion respectively, which will drive demand for Nvidia's chips and further solidify its market position.
- New Architecture Driving Growth: Nvidia's upcoming Rubin chip architecture offers significant efficiency improvements over the previous Blackwell generation, requiring only one Rubin chip for every four Blackwell chips for AI model training, which will encourage more companies to upgrade their GPUs, thus driving sustained growth for Nvidia.
- Attractive Stock Valuation: While Nvidia's stock is often deemed expensive, its forward P/E ratio of less than 25 times is near its lowest level in three years, and a projected 20% price increase would bring it to a more reasonable 30 times forward earnings, making it a prime buying opportunity now.
See More
AMD Faces Challenges Despite Optimistic AI Outlook
- Stock Volatility: Since the beginning of 2025, AMD's stock has risen approximately 71%, yet it is currently down about 22% from its all-time high set in October 2025, indicating market divergence regarding its future performance.
- AI Spending Driving Growth: AMD's management is optimistic about its five-year outlook, projecting a 60% compounded annual growth rate (CAGR) in its data center division, benefiting from over $500 billion in capital expenditures committed by companies like Amazon, Meta, and Alphabet in 2026.
- Data Center Revenue Growth: In Q4, AMD's data center segment saw a 39% year-over-year revenue increase, which, while short of the 60% target, marks a significant improvement from the 22% growth in Q3, indicating progress towards achieving its goals.
- Competition with Nvidia: Despite AMD's potential for a turnaround, its slower AI business growth compared to Nvidia, which trades at a more attractive 24 times forward earnings, poses a challenge for investors when deciding where to allocate their funds.
See More
AMD Stock Volatility Amid AI Prospects
- Stock Volatility: Since the beginning of 2025, AMD's stock has risen approximately 71%, yet it is currently down about 22% from its all-time high set in October 2025, indicating market uncertainty regarding its future performance.
- AI Market Potential: AMD's management remains optimistic about its five-year outlook, projecting a 60% compounded annual growth rate (CAGR) in its data center division, which stands to benefit from over $500 billion in capital expenditures committed by companies like Amazon, Meta, and Alphabet in 2026.
- Performance Improvement: In Q4, AMD's data center segment saw a 39% year-over-year revenue increase, which, while falling short of the 60% target, marks a significant improvement from the 22% growth in the third quarter, suggesting progress towards its goals.
- Investor Confidence: Despite AMD's potential for a turnaround, it still lags behind Nvidia, which is growing its AI business at a faster pace and trades at a more attractive valuation, prompting investors to carefully consider their holding strategies.
See More
AMD's Optimistic Data Center Growth Outlook
- Data Center Growth Outlook: AMD's management anticipates a 60% compounded annual growth rate (CAGR) in its data center division over the next five years, reflecting confidence in capturing potential revenue from AI spending, although further validation is needed.
- Revenue Growth Performance: In Q4 2025, AMD's data center revenue increased by 39% year-over-year, which, while falling short of the 60% target, marks a significant improvement from the 22% growth in Q3, indicating positive progress in the company's transformation efforts.
- Competitive Market Pressure: Despite improvements in AMD's AI offerings, it remains behind Nvidia, which attracts investors with a lower valuation and faster growth rate, necessitating AMD to shift market perceptions of its products to achieve success.
- Investor Confidence Challenge: While AMD's outlook is optimistic, investors need to monitor performance improvements over the next few quarters to confirm the authenticity of the company's turnaround, making holding the stock a more prudent choice at this time.
See More
CoreWeave's Stock Surges 140% Post-IPO Amid AI Demand
- Strong IPO Performance: CoreWeave's stock soared over 300% following its IPO in late March, and despite some pullback, it remains up nearly 140% since debut, reflecting strong market confidence in its AI chip rental business.
- Significant Revenue Growth: The company has achieved triple-digit revenue growth for three consecutive quarters, primarily due to its flexible GPU rental service that meets the urgent demand for computing power from AI customers, thereby enhancing its competitive position in the market.
- Close Partnership with Nvidia: Nvidia not only holds shares in CoreWeave but has also pledged to purchase any unused cloud capacity until April 2032, indicating strong confidence in CoreWeave's future and further solidifying its position in the AI market.
- Future Investment Challenges: While CoreWeave faces high debt risks due to necessary infrastructure investments, growth investors willing to take on some risk may consider buying shares around the upcoming earnings report on February 26, potentially reaping substantial rewards as the AI sector continues to expand.
See More
AMD Data Center Revenue Accelerates Growth
- Data Center Revenue Growth: AMD's data center revenue increased by 39% year-over-year in Q4 2025, a significant acceleration from 22% in Q3, indicating the company's recovery potential in this area, although the overall growth rate remains below the management's target of 60%.
- Market Share and Competition: AMD's stock rose approximately 60% in 2025, but experienced a pullback after the Q4 earnings announcement, with the current P/E ratio dropping from nearly 40 to 31, reflecting a market reassessment of its valuation, especially compared to rival Nvidia, which trades at a P/E of 24.
- Chinese Market Recovery: With the Trump administration allowing exports to China, AMD's sales are starting to rebound, a trend expected to significantly boost revenue throughout 2026 and beyond, further driving growth in its data center business.
- Long-Term Growth Outlook: AMD's five-year guidance released in November projected a 60% CAGR for the data center division and a 35% overall CAGR for the company, and while Q4 slightly missed these projections, it still shows strong progress toward these goals, with analysts expecting revenue growth of 34% and 37% for 2026 and 2027, respectively.
See More
Nvidia Set to Report Strong Earnings with Promising Guidance
- China Market Recovery: Following the Trump administration's ban on Nvidia chip exports to China in April 2025, Nvidia is expected to resume exports, and if first-quarter revenue expectations reach $8 billion, it could lead to unexpected growth, significantly boosting market confidence.
- Surge in AI Giants' Investment: Major clients of Nvidia, including Alphabet, Amazon, and Meta, have announced capital expenditure plans for 2026, with expected spending of $175 billion to $185 billion, $200 billion, and $115 billion to $135 billion respectively, which will drive demand for Nvidia's chips and further solidify its market position.
- New Architecture Driving Growth: Nvidia's upcoming Rubin chip architecture offers significant efficiency improvements over the previous Blackwell generation, requiring only one Rubin chip for every four Blackwell chips for AI model training, which will encourage more companies to upgrade their GPUs, thus driving sustained growth for Nvidia.
- Attractive Stock Valuation: While Nvidia's stock is often deemed expensive, its forward P/E ratio of less than 25 times is near its lowest level in three years, and a projected 20% price increase would bring it to a more reasonable 30 times forward earnings, making it a prime buying opportunity now.
See More
AMD Faces Challenges Despite Optimistic AI Outlook
- Stock Volatility: Since the beginning of 2025, AMD's stock has risen approximately 71%, yet it is currently down about 22% from its all-time high set in October 2025, indicating market divergence regarding its future performance.
- AI Spending Driving Growth: AMD's management is optimistic about its five-year outlook, projecting a 60% compounded annual growth rate (CAGR) in its data center division, benefiting from over $500 billion in capital expenditures committed by companies like Amazon, Meta, and Alphabet in 2026.
- Data Center Revenue Growth: In Q4, AMD's data center segment saw a 39% year-over-year revenue increase, which, while short of the 60% target, marks a significant improvement from the 22% growth in Q3, indicating progress towards achieving its goals.
- Competition with Nvidia: Despite AMD's potential for a turnaround, its slower AI business growth compared to Nvidia, which trades at a more attractive 24 times forward earnings, poses a challenge for investors when deciding where to allocate their funds.
See More
AMD Stock Volatility Amid AI Prospects
- Stock Volatility: Since the beginning of 2025, AMD's stock has risen approximately 71%, yet it is currently down about 22% from its all-time high set in October 2025, indicating market uncertainty regarding its future performance.
- AI Market Potential: AMD's management remains optimistic about its five-year outlook, projecting a 60% compounded annual growth rate (CAGR) in its data center division, which stands to benefit from over $500 billion in capital expenditures committed by companies like Amazon, Meta, and Alphabet in 2026.
- Performance Improvement: In Q4, AMD's data center segment saw a 39% year-over-year revenue increase, which, while falling short of the 60% target, marks a significant improvement from the 22% growth in the third quarter, suggesting progress towards its goals.
- Investor Confidence: Despite AMD's potential for a turnaround, it still lags behind Nvidia, which is growing its AI business at a faster pace and trades at a more attractive valuation, prompting investors to carefully consider their holding strategies.
See More
AMD's Optimistic Data Center Growth Outlook
- Data Center Growth Outlook: AMD's management anticipates a 60% compounded annual growth rate (CAGR) in its data center division over the next five years, reflecting confidence in capturing potential revenue from AI spending, although further validation is needed.
- Revenue Growth Performance: In Q4 2025, AMD's data center revenue increased by 39% year-over-year, which, while falling short of the 60% target, marks a significant improvement from the 22% growth in Q3, indicating positive progress in the company's transformation efforts.
- Competitive Market Pressure: Despite improvements in AMD's AI offerings, it remains behind Nvidia, which attracts investors with a lower valuation and faster growth rate, necessitating AMD to shift market perceptions of its products to achieve success.
- Investor Confidence Challenge: While AMD's outlook is optimistic, investors need to monitor performance improvements over the next few quarters to confirm the authenticity of the company's turnaround, making holding the stock a more prudent choice at this time.
See More
CoreWeave's Stock Surges 140% Post-IPO Amid AI Demand
- Strong IPO Performance: CoreWeave's stock soared over 300% following its IPO in late March, and despite some pullback, it remains up nearly 140% since debut, reflecting strong market confidence in its AI chip rental business.
- Significant Revenue Growth: The company has achieved triple-digit revenue growth for three consecutive quarters, primarily due to its flexible GPU rental service that meets the urgent demand for computing power from AI customers, thereby enhancing its competitive position in the market.
- Close Partnership with Nvidia: Nvidia not only holds shares in CoreWeave but has also pledged to purchase any unused cloud capacity until April 2032, indicating strong confidence in CoreWeave's future and further solidifying its position in the AI market.
- Future Investment Challenges: While CoreWeave faces high debt risks due to necessary infrastructure investments, growth investors willing to take on some risk may consider buying shares around the upcoming earnings report on February 26, potentially reaping substantial rewards as the AI sector continues to expand.
See More
