The U.S. government's imposed restrictions on artificial intelligence chip exports by companies like Nvidia (NVDA), AMD (AMD, Financial), and Intel (INTC) are set to have significant global implications. This move aims to control the advanced technology flow to China, potentially impacting the competitive landscape in the semiconductor industry.
Experts suggest these restrictions could inadvertently bolster Chinese tech giant Huawei's position in the global chip-making arena. As Huawei seeks to expand its capabilities, the limitations on U.S. technology exports might accelerate the development of domestic alternatives in China, thereby reshaping the international semiconductor market.
With Nvidia (NVDA) and other major U.S. chip manufacturers unable to sell certain AI chips to Chinese entities, the ripple effects of this policy could lead to substantial changes in international trade and technology development strategies. This development underscores the ongoing geopolitical tensions centered around technology and intellectual property.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 40 analysts, the average target price for Advanced Micro Devices Inc (AMD, Financial) is $141.22 with a high estimate of $225.00 and a low estimate of $90.00. The average target implies an upside of 61.39% from the current price of $87.50. More detailed estimate data can be found on the Advanced Micro Devices Inc (AMD) Forecast page.
Based on the consensus recommendation from 50 brokerage firms, Advanced Micro Devices Inc's (AMD, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Advanced Micro Devices Inc (AMD, Financial) in one year is $162.89, suggesting a upside of 86.16% from the current price of $87.5. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Advanced Micro Devices Inc (AMD) Summary page.
