AMD Shares Surge on Potential Shift in U.S.-China Chip Policy

A high-level meeting in Beijing has ignited investor optimism for Advanced Micro Devices (AMD), positioning the semiconductor firm at the center of speculation regarding artificial intelligence (AI) chip exports to China. The core catalyst was a substantive discussion between AMD’s CEO, Dr. Lisa Su, and China’s Commerce Minister, Wang Wentao. This engagement has fueled market anticipation that the United States might reconsider its stringent export controls on advanced computing semiconductors.

Market Reaction and Analyst Stance

The financial markets responded with notable enthusiasm to the political developments. AMD’s stock price climbed 6.36% on Friday, closing at €182.28. This positive movement occurred despite a corrective phase in recent weeks, leaving the shares with a solid gain over a twelve-month horizon.

Analysts are maintaining a constructive, if measured, outlook. Truist Securities adjusted its model ahead of the weekend, reaffirming a “Buy” rating. While the firm slightly trimmed its price target from $279 to $277, the revision underscores a continued belief in significant upside potential. The enduring buy recommendation signals confidence in AMD’s growth narrative, particularly within the data center and AI segments where it competes directly with industry leader Nvidia.

The Dual Drivers: Policy and Sector Momentum

The rally was supported by a confluence of factors extending beyond geopolitics. Broader semiconductor sentiment received a boost from strong quarterly results reported by competitor Micron Technology. These results reinforced the thesis that demand for AI-related hardware components remains robust.

Should investors sell immediately? Or is it worth buying AMD?

Within this favorable sector backdrop, AMD’s performance was particularly pronounced, distinguished by its specific China-related prospects. With the AI infrastructure market projected for strong growth through at least 2026, investors increasingly view AMD as the primary alternative to Nvidia. Consequently, the stock remains highly sensitive to expectations surrounding the capital expenditure plans of major cloud and data center operators.

Examining the Technical Landscape and Future Catalysts

From a chart perspective, the stock appears to be stabilizing after its recent period of weakness. It posted a modest weekly gain of 1.49%, though it remains down approximately 6% over a 30-day period. Currently trading about 20% below its 52-week high of €227.15, the shares still hold a considerable premium—roughly 29%—above their 200-day moving average, suggesting the longer-term upward trend remains intact.

Technical indicators present a mixed picture. The Relative Strength Index (RSI) reading of 42.4 does not indicate an overbought or oversold condition. However, the 30-day volatility hovering near 47% confirms that substantial price swings are to be expected. In the near term, investor focus will likely center on two key areas: further policy signals from Washington regarding export licenses for high-performance data center chips, and tangible evidence of AMD’s ability to capture market share from Nvidia in the AI arena. Should developments on both the political and demand fronts prove consistently positive, the current upward move could evolve into a more sustainable trend.