Trump Imposes 25% Tariff on High-End AI Chips from Nvidia and AMD
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8h ago
0mins
Source: Benzinga
- Tariff Implementation: The Trump administration has imposed a 25% tariff on high-end AI chips from companies like Nvidia and AMD, aimed at reducing U.S. dependence on foreign chips and promoting domestic production to mitigate economic and national security risks.
- Investigation Background: This tariff follows a nine-month investigation revealing that the U.S. only manufactures about 10% of the chips it needs, highlighting significant risks associated with reliance on foreign supply chains.
- Limited Scope of Tariffs: The White House emphasized that the tariffs are narrowly targeted and will not disrupt the broader U.S. AI ecosystem, with exemptions for certain products like data center chips and consumer goods.
- Complexity of China Policy: Trump has mandated that chips made in Taiwan for China must undergo third-party testing in the U.S., adding complexity to the policy, while also allowing Nvidia to sell certain advanced chips to China in exchange for a share of the proceeds.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 281.78 USD with a low forecast of 200.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
37 Analyst Rating
27 Buy
10 Hold
0 Sell
Moderate Buy
Current: 220.970
Low
200.00
Averages
281.78
High
350.00
Current: 220.970
Low
200.00
Averages
281.78
High
350.00
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.
