AMD Stock Hits Fresh All-Time Highs On US-China Trade Truce Optimism

• Optimism grew over a potential U.S.-China trade agreement that could avert a new 100% tariff on Chinese goods.
• The expected deal eased concerns across the semiconductor sector, lifting sentiment after months of tension over export restrictions.
• Separately, AMD completed the sale of its ZT Systems data center manufacturing unit to Sanmina Corp.

Advanced Micro Devices Inc. (AMD) stock hit a fresh all-time high on Monday morning, on optimism about progress in trade talks between the U.S. and China.

According to a CNBC report, Treasury Secretary Scott Bessent said that President Donald Trump and Chinese President Xi Jinping are nearing a trade agreement that would prevent the United States from imposing a new 100% tariff on Chinese goods.

How Does An Ease In U.S.-China Trade Tariffs Impact AMD?

The news lifted sentiment in the semiconductor industry, which has been under pressure amid concerns about trade tensions and export restrictions. The Trump administration had earlier announced that the new licensing requirements would apply to the export of certain semiconductor products to China.

In response, AMD said in July that the new licensing requirements would impact its inventories, purchase commitments, and reserves. In August, AMD agreed to pay 15% of specific chip sales in China to the U.S. government in return for export licenses allowing the sale of MI308 chips in the Chinese market.

AMD stock hit a high of $258.43 at the opening bell but quickly pared its gains. On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory amid ‘low’ message volume levels. 

According to the report, the anticipated agreement aims to defuse trade tensions and restore stability to U.S.-China economic relations. A resolution would likely prevent further disruption in tech manufacturing.

Divestiture Of ZT Systems 

Additionally, AMD on Monday finalized the sale of its U.S.-based data center infrastructure manufacturing operations, ZT Systems, to Sanmina Corp. (SANM).

Through this divestiture, AMD aims to enhance the efficiency of its AI hardware deployment and improve scalability for enterprise customers. 

AMD stock has gained 109% year-to-date and 58% over the last 12 months. 

Also See: Keurig Dr Pepper Reveals $7 Billion Financing Plan For JDE Peet’s Deal

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