Shares of Advanced Micro Devices (AMD) remained largely unchanged during Tuesday's trading session, hovering around $216, following a Financial Times report indicating the Trump administration may exempt major technology companies constructing artificial intelligence data centers from impending semiconductor tariffs. These tariffs are linked to Taiwan Semiconductor Manufacturing Company's U.S. investment strategy.
At 10:18 a.m. EST, AMD traded at $215.81, reflecting a slight decline of approximately 0.1%, after fluctuating between $214.35 and $219.05 earlier in the day. The potential policy shift is significant because large-scale purchasers of data center chips often adjust their order timelines based on regulatory changes. For AMD, which is expanding its sales of AI accelerator chips and server processors, the broader policy direction carries more weight than specific details.
Broader Market and Sector Performance
The semiconductor sector displayed a mixed performance in early trading. The VanEck Semiconductor ETF declined by about 0.4%. Notable movers included Nvidia, which fell 0.7%, and Intel, which dropped nearly 3%. In contrast, Broadcom saw a marginal gain, and U.S.-listed shares of TSMC advanced roughly 1.2%. The broader Nasdaq 100 and S&P 500 ETFs both rose approximately 0.3%.
AMD's stock has experienced volatility following its recent earnings release. The share price increased 3.6% on Monday to close near $216, recovering from a sharp decline last Wednesday and a subsequent rebound through the end of the previous week.
Corporate Developments and Macro Context
On the corporate front, AMD announced the appointment of Ariel Kelman, formerly a marketing executive at Salesforce, Amazon Web Services, and Oracle, as its new chief marketing officer, effective immediately. The company also recently filed its annual Form 10-K and a current Form 8-K with regulators.
Macroeconomic data is also influencing the sector. Unexpectedly flat U.S. retail sales figures for December could pressure bond yields lower, potentially benefiting high-growth technology stocks. Looking ahead, traders are focused on upcoming economic releases, including the January employment report scheduled for February 11 and the Consumer Price Index (CPI) for January due on February 13.
Last week, AMD provided its first-quarter revenue guidance of approximately $9.8 billion, plus or minus $300 million, noting that approved sales to China could impact results. CEO Lisa Su stated the company does not expect to be supply-limited as it ramps up AI server production later this year.
However, the tariff exemption proposal remains uncertain. If exemptions are reduced, delayed, or come with restrictive conditions, chip manufacturers could face renewed cost and demand volatility—a concern for a sector whose valuations are heavily tied to long-term AI investment expectations.
