Advanced Micro Devices Inc (NASDAQ:AMD) shares are trading lower Tuesday after the Biden administration said it plans to halt advanced AI chip shipments to China.
What To Know: According to a Reuters report, the U.S. government has unveiled a set of new rules aimed at stopping China from using U.S. AI technologies to bolster its military.
The measures will restrict shipments of advanced chips and chipmaking tools to China, as well as other countries including Iran and Russia. The rules will also blacklist two unnamed Chinese chipmakers.
Commerce Department Secretary Gina Raimondo reportedly said the Biden administration does not want to hurt China economically and instead is focused on limiting access to chips that could help strengthen the country’s military capabilities.
Earlier this year, AMD CEO Lisa Su said the chip company was making a “big bet” on the generative AI boom by putting AI into every aspect of its product portfolio.
Several chip stocks fell on Tuesday’s chip restriction news. AMD shares had given up all of their gains from Monday and then some at last check.
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AMD Price Action: AMD shares were down 3.25% at $103 at the time of publication, according to Benzinga Pro.
Photo: courtesy of AMD.
