Advanced Micro Devices Inc (NASDAQ:AMD) stock fell nearly 1% on Friday as investors weighed new semiconductor tariff risks that could raise costs across chips, data center servers and other technology hardware.
Tariff Uncertainty Adds Risk For AI Hardware
The Trump administration is reportedly considering new semiconductor tariffs that could extend beyond chips to products containing semiconductors, including laptops, gaming consoles and data center servers.
Commerce Secretary Howard Lutnick reportedly favors linking tariff relief for foreign companies to investments in U.S. chip manufacturing.
The White House said reports about tariffs should be treated as "baseless speculation" unless the administration makes an official announcement.
Officials are also considering a phase-in period, while technology companies are lobbying to soften the proposal.
The companies warn that higher duties could slow AI data center construction by making semiconductor sourcing more difficult.
AMD traded lower even as S&P 500 futures gained 0.04% at the time of publication.
AMD Analyst Consensus & Recent Actions
The stock carries a Buy rating with an average price forecast of $595.91. Recent analyst moves include:
- Raymond James: Upgraded to Strong Buy (Raises Forecast to $641.00) (Aug. 25)
- BMO Capital: Initiated with Outperform (Forecast $550.00) (Aug. 21)
- Argus Research: Buy (Raises Forecast to $625.00) (Aug. 6)
Top ETF Exposure
- iShares Semiconductor ETF (NASDAQ:SOXX): 8.10% Weight
- CoreValues America First Technology ETF (NYSE:USMD): 7.74% Weight
- ARK Next Generation Internet ETF (NYSE:ARKW): 7.00% Weight
Significance: Because AMD carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
AMD Price Action: Advanced Micro Devices shares were down 1.10% at $471.45 at the time of publication on Friday, according to Benzinga Pro data.
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