Why AMD Fell on Friday: Semiconductor Tariff Risks Raise Concerns

Advanced Micro Devices Inc shares fell nearly 1% on Friday as investors weighed new semiconductor tariff risks that could raise costs for chips, data center servers, and other tech hardware.

Tariff Uncertainty Adds Risk to AI Hardware

The Trump administration is reportedly considering new semiconductor tariffs that could extend beyond chips themselves to products containing semiconductors, including laptops, gaming consoles, and data center servers.

Commerce Secretary Howard Lutnick reportedly favors tying tariff relief for foreign companies to their investments in U.S. chip manufacturing.

The White House said reports on tariffs should be treated as "baseless speculation" until the administration makes an official announcement.

Officials are also considering a phased transition period, while tech companies are lobbying to soften the proposal.

These companies warn that higher tariffs could make semiconductor procurement more difficult, thereby slowing the buildout of AI data centers.

AMD shares traded lower, even as S&P 500 futures rose 0.04% at the time of publication.

AMD Analyst Consensus and Recent Rating Actions

The stock holds a Buy rating with an average price target of $595.91. Recent analyst rating actions include:

Raymond James: Upgraded to Strong Buy

BMO Capital: Initiated with Outperform rating

Argus Research: Buy

Major ETF Holdings

iShares Semiconductor ETF: Weight 8.10%

CoreValues America First Technology ETF: Weight 7.74%

ARK Next Generation Internet ETF: Weight 7.00%

Importance: Given AMD's significant weight in these funds, any notable inflows or outflows in these ETFs could force the funds to automatically buy or sell the stock.

AMD Share Price Action: At the time of publication on Friday, Advanced Micro Devices shares were down 1.10% at $471.45.