Why AMD Stock Plummeted Today
Advanced Micro Devices (NASDAQ: AMD) stock saw a big valuation pullback Wednesday. The semiconductor company's share price ended the day's trading down 7.4% amid a 2.3% decline for the S 500 and a 3.1% decline for the Nasdaq Composite. Earlier in the session, the stock had been down as much as 10.5%.
AMD disclosed yesterday that sales of its MI308X processor to China were now effectively banned and that it expected to take an $800 million write-down as a result. Unfortunately, that wasn't the only bearish news for investors.
Due to new U.S. policies, AMD will require an export license in order to sell its MI308X artificial intelligence (AI) processor into the Chinese market. Because it's unlikely that the export license will be granted, the company is essentially barred from selling the processor to Chinese customers and anticipates taking an $800 million loss on inventory.
Source Fool.com
Advanced Micro Devices Inc. Stock
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