Why AMD Stock Plummeted Today

Core Viewpoint - Advanced Micro Devices (AMD) is experiencing significant stock valuation declines due to new export restrictions and rising manufacturing costs, leading to an anticipated $800 million write-down [1][2][3]. Group 1: Stock Performance - AMD's stock price fell by 7.4% in a single trading day, with an earlier drop of 10.5%, while the S&P 500 and Nasdaq Composite also declined by 2.3% and 3.1%, respectively [1]. Group 2: Export Restrictions - AMD announced that sales of its MI308X processor to China are effectively banned due to new U.S. policies requiring an export license, which is unlikely to be granted [2][3]. - The company expects to incur an $800 million loss on inventory due to these restrictions [2][3]. Group 3: Manufacturing Costs - TSMC, AMD's manufacturing partner, is set to increase prices on its 4nm chips by 30% due to high demand, which could lead to significantly higher costs for AMD [4]. Group 4: Macro Economic Factors - The Trump administration's decision to raise tariffs on Chinese goods to 245% from 145% has contributed to negative sentiment in the semiconductor sector, prompting investors to reduce exposure to chip stocks [5]. - Federal Reserve Chairman Jerome Powell indicated a cautious approach to interest rate cuts, citing potential economic growth weakening and inflation acceleration due to new tariffs [6].