AMD Stock Jumps 17% as China Tariffs Spare Taiwan-Made Chips
The AMD share price closed the week 15% higher this wee as tariffs fears on Monday morning turned out to be the opposite, helping tech stock
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The AMD share price closed the week 17.5% higher this week as tariffs fears on Monday morning turned out to be the opposite, helping tech stock.
Advanced Micro Devices (NASDAQ: AMD) closed the week with an impressive 16% gain, buoyed by a renewed wave of optimism that swept through tech and semiconductor stocks. After months of heavy selling pressure—culminating in a 67% drop from its 2024 high of $227—AMD saw a powerful rebound triggered by U.S. President Donald Trump’s announcement of a temporary 90-day freeze on trade tariffs, excluding China.
AMD Chart Weekly – A Strong Comeback Above the 200 SMA
On Wednesday, AMD shares staged a dramatic rally, jumping nearly 26% intraday from $76.48 to $96.84. Though the momentum faded briefly on Thursday with an 8% pullback due to profit-taking and revived concerns over U.S.–China trade escalation, buyers returned on Friday to drive the stock up more than 5%. The chipmaker closed the week trading above its critical 200-week simple moving average—a positive technical signal that could hint at further upside potential.
Semiconductor Sector Surges on Trade Clarity
AMD wasn’t alone in this upswing. The broader semiconductor sector experienced a resurgence, lifted by hopes that the tariff suspension would ease pressure on U.S. tech exports and global supply chains. High-profile names like Apple, Broadcom (AVGO), and Tesla all rallied sharply, contributing to one of the strongest weekly performances for the Nasdaq in over two years.
The positive sentiment was further fueled by a report suggesting that U.S. chipmakers outsourcing production through Taiwan Semiconductor Manufacturing Company (TSMC) might be shielded from retaliatory Chinese tariffs. According to the report, Chinese regulators classify such chips as Taiwanese in origin, potentially sparing American firms like AMD from direct tariff consequences. This nuance, if sustained, could offer significant breathing room for companies deeply embedded in global semiconductor networks.
Long-Term Headwinds Remain for AMD, But Outlook Brightens
Despite the explosive rally, AMD’s stock is still down nearly 59% from its 2024 peak and remains in a longer-term downtrend. The company has been navigating stiff competition from AI hardware leaders Nvidia and Broadcom, along with broader macroeconomic pressures, slowing tech demand, and supply chain vulnerabilities.
However, analysts remain optimistic that the semiconductor market is poised for a major recovery. Forecasts for 2025 suggest that global chip sales could surge over 20%, crossing the $500 billion mark. This robust outlook—combined with potential tariff exemptions and easing inflation—offers AMD a chance to reassert itself in the high-performance computing space, especially as demand for AI infrastructure continues to grow.
Conclusion: Reversal or Relief Rally?
AMD’s strong performance this week is encouraging, but the stock still has technical and fundamental hurdles to overcome before confirming a full-blown trend reversal. While the trade policy reprieve and renewed investor interest in semiconductors provided a much-needed jolt, the durability of this rally will likely depend on policy follow-through, earnings strength, and sustained demand in the AI and data center markets.
For now, though, the bulls are back in charge—and AMD is reminding Wall Street it’s still a force to be reckoned with.
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