AMD stock jumps 7% as US allows China AI GPU shipments to resume

Investing.com - Advanced Micro Devices (NASDAQ:AMD) stock rose 7% on Tuesday after the company announced it can resume shipping its MI308X AI GPU to China following a review by the U.S. Department of Commerce. According to InvestingPro, this development could significantly impact the semiconductor sector, where detailed financial analysis and Fair Value calculations help investors make informed decisions in this volatile market.

AMD had previously estimated the revenue impact from China export requirements would be approximately $1.5 billion in 2025, representing about 4% of its projected sales. The company noted that while shipments can resume, the MI308X GPU has margins substantially lower than AMD’s corporate average of nearly 54%.

The news comes as the U.S. administration announced $70 billion in energy and data center investments in Pennsylvania, aiming to position the United States as a leader in artificial intelligence. This follows approximately $75 billion in AI investments from Saudi Arabia announced in May.

Several technology companies made significant commitments as part of the Pennsylvania investment initiative. Google, which InvestingPro data shows has a market capitalization of $2.22 trillion and impressive revenue growth of 13% over the last twelve months, will invest $25 billion. CoreWeave will invest $6 billion in data center buildouts across Pennsylvania and neighboring states, while Meta (NASDAQ:META) pledged hundreds of billions for AI data centers, including plans to bring a 1GW supercluster called Prometheus online in 2026. Google’s strong financial health score of "GREAT" and solid P/E ratio of 20.37 suggest it’s well-positioned to execute on these investments.

Oracle (NYSE:ORCL) also committed $3 billion for AI cloud infrastructure in Germany and Netherlands, further expanding the AI ecosystem that benefits semiconductor companies. Citi analysts view these developments as positive for Broadcom (NASDAQ:AVGO), AMD, and Micron Technology (NASDAQ:MU) as the announcements expand the customer base for AI GPUs and high-bandwidth memory. For comprehensive analysis of these tech giants and their AI initiatives, including Fair Value calculations and financial health scores, explore the in-depth Pro Research Reports available for 1,400+ top stocks on InvestingPro.

In other recent news, Rivian Automotive (NASDAQ:RIVN) Inc has announced a collaboration with Google to integrate Google Maps into its navigation system, enhancing Rivian’s in-vehicle technology offerings. This partnership allows Rivian drivers access to Google Maps’ routing capabilities and traffic insights while retaining features like EV charging stop planning. Meanwhile, Google’s AI agent, Big Sleep, has successfully prevented a cybersecurity exploit, marking a milestone in AI-driven security efforts. Additionally, BMO Capital has raised its price target for Alphabet (NASDAQ:GOOGL) to $208, maintaining an Outperform rating due to optimism around Google’s AI products, which are expected to boost advertising revenue.

Cognition has acquired AI coding startup Windsurf, following the collapse of Windsurf’s acquisition by OpenAI. This acquisition includes Windsurf’s intellectual property and business operations, with all employees financially participating in the transaction. In a separate deal, Google has hired key Windsurf executives to join its DeepMind division, advancing its agentic coding initiatives. Furthermore, Google has introduced a photo-to-video conversion feature for Gemini paid subscribers, allowing users to create short video clips from still images. This feature is part of Google’s expanding AI capabilities, offering subscribers new creative tools.

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