The recent passage of a significant Senate bill has raised concerns among investors regarding Advanced Micro Devices (AMD) and Nvidia (NVDA). This legislation aims to restrict the export of artificial intelligence (AI) chips to China, a move that may impact the profitability of these leading chipmakers.
Impact of the Senate AI Export Bill
On Friday, the stocks of AMD and Nvidia faced notable declines following the Senate’s approval of the AI export bill. AMD experienced a substantial drop, losing 5.46% of its value. In contrast, Nvidia’s shares fell by a lesser margin of 1.83%. This variance highlights investor sentiment influenced by the potential export limitations.
Current Stock Performance
Despite the recent downturn, AMD shares have demonstrated impressive growth in 2023. They are up 82.5% year-to-date and have risen 38.72% over the past year. Meanwhile, Nvidia has recorded a 40.85% increase since the beginning of 2025 and a 42.86% gain over the past year.
Legislative Uncertainties
The fate of the Senate bill remains uncertain, as it has yet to be finalized into law. Previous agreements, notably one struck by former President Trump earlier this year, allowed for more lenient export conditions. If the current legislation contradicts this agreement, it could face a presidential veto.
Additionally, the House of Representatives is developing its own version of the legislation, which currently does not include the same export restrictions. This variation adds another layer of unpredictability to the situation.
Analyst Ratings and Predictions
As the market reaction unfolds, analysts have begun assessing the comparative strengths of AMD and Nvidia stocks. Utilizing tools like the TipRanks stock comparison feature, stakeholders can monitor analyst ratings. Nvidia currently holds a consensus rating of Strong Buy. In comparison, AMD has a Moderate Buy rating.
Investors should note that Nvidia also offers greater upside potential, projected at 16.19%, while AMD’s potential is estimated at 7.98%. This disparity in growth expectations could influence future investment decisions.
- AMD Stock Performance:
- 5.46% decline on Friday
- 82.5% increase year-to-date
- 38.72% rise over the last year
- Nvidia Stock Performance:
- 1.83% decline on Friday
- 40.85% increase since the start of 2025
- 42.86% rise over the last year
While the Senate AI export bill poses challenges for AMD and Nvidia, the ongoing developments in trade policy will be crucial in determining the future market dynamics for these tech giants.
