The semiconductor sector is facing a challenging start to the week, with Advanced Micro Devices (AMD) experiencing notable downward pressure. The White House's announcement of new controls on AI chip exports has raised concerns about potential impacts on AMD's international sales, particularly in key markets like China. This development comes amid a broader backdrop of geopolitical tensions and trade restrictions that have been weighing on the semiconductor industry. Additionally, TD Cowen's decision to lower AMD's price target from $185 to $150 has added to the negative sentiment, reflecting concerns over the company's growth prospects in the current market environment.
The Philadelphia Semiconductor Index (SOX) also reflects the sector's struggles, showing a decline of 1.13% as of January 13, 2025. This downturn is compounded by a mixed performance across semiconductor sub-sectors, with some areas like memory and storage showing resilience, while others, including automotive and industrial, are underperforming. The broader market's cautious stance is further evidenced by recent downgrades from major financial institutions, which have tempered expectations for AMD and other semiconductor stocks.
The GraniteShares 2x Long AMD Daily ETF (AMDL) is trading at $6.88, down 1.79% from its previous close.