- AMD shares fell on Friday following new U.S. tariff threats against China.
- President Trump announced possible financial countermeasures after China’s recent export activity, calling China “very hostile.”
- AMD recently reported a strong week, with share prices rising after a multi-billion-dollar partnership deal with OpenAI.
- Despite short-term declines, analysts hold an average $250 price target for AMD shares, though some remain cautious.
- AI and data center market growth continues to offer opportunity for AMD, despite increasing competition and slowing growth in its AI hardware segment.
AMD stock dropped on Friday as U.S. President Donald Trump threatened new tariffs towards China. The decline followed Trump’s announcement of potential financial actions in response to what he described as China’s hostile export policies. Shares for AMD fell even after a week of positive performance for the company.
Posting on Truth Social, President Trump stated that China had become “very hostile” by asking other countries to set export controls on rare earths and related products. He said, “Dependent on what China says about the hostile ‘order’ that they have just put out, I will be forced, as President of the United States of America, to financially counter their move.” The announcement caused several Chinese stocks to fall and impacted related companies, including AMD.
Earlier in the week, AMD had announced a multi-billion-dollar deal with OpenAI. The company will supply up to 6 gigawatts of GPUs—graphics processing units—across several generations, starting with its MI450 chips in the second half of 2026. In exchange, OpenAI will take a stake in AMD worth as much as 160 million shares, or about 10 percent of the company.
Recent supply chain checks indicate slowing growth in AMD’s AI accelerator business, though the company remains a major player in data center technology. The stock, trading around $219, is up 38% in the past 30 days. Analyst price targets average $250; AZ and Rosenblatt both support this target, while Goldman Sachs holds a more cautious neutral view with a $140 target.
Experts note that AMD is considered the most under-owned semiconductor stock, despite its strong sales outlook. Investors highlight that the growing demand for AI and data center technology represents key growth opportunities, especially with upcoming products like the MI355 GPU. Despite recent concerns, AMD continues to outperform much of its sector.
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