Chip giant AMD (NASDAQ:AMD) has suffered a setback in its attempt to sell an AI chip catering to the Chinese market, according to Bloomberg News. AMD attempted to get approval from the U.S. Department of Commerce, but the company was directed to acquire a license from the Bureau of Industry and Security. This was despite the chip being weaker than AMD’s non-Chinese versions and was designed to meet export restrictions in the U.S.
Over the past few months, the U.S. Government has moved to halt exports of more advanced AI chips to China as it attempts to stop the country’s access to cutting-edge technology that could strengthen its military.
These restrictions have hampered chip sales of semiconductor majors like Nvidia (NASDAQ:NVDA). Nvidia saw its chip revenues from China drop sequentially by 53% in the fourth quarter.
Is AMD a Buy, Hold, or Sell?
Analysts remain bullish about AMD stock with a Strong Buy consensus rating based on 29 Buys and five Holds. Over the past year, AMD has skyrocketed by more than 100%, and the average AMD price target of $197.77 implies a downside potential of 3.7% at current levels.
