Shares of Advanced Micro Devices (AMD) fell 4.3% in pre-market trading after the U.S. Commerce Department closed a loophole that allowed AMD's MI350x AI accelerators to be shipped to Chinese-controlled subsidiaries abroad.
The new export guidelines raise compliance burdens and cast doubt on demand for AMD's MI350 products. AMD is reportedly seeking clarity from regulators regarding existing contracts.
On the competitive front, Nvidia announced its RTX Spark chip line at Computex, challenging AMD's client CPU business.
Barclays maintained an Overweight rating on AMD and raised its price target to $665 from $500. Mizuho also kept an Outperform rating with a target of $615.
U.S. equity indices are modestly positive: S&P 500 up 0.2%, Dow Jones up 0.7%, Nasdaq up 0.2%. AMD's decline is company-specific rather than market-wide.
Market commentary suggests the export rules are clarifications, not a sweeping ban, but they introduce uncertainty and may affect future sales to China-linked customers.
