AMD and Nvidia Stocks Decline Amid Senate’s AI Export Legislation

Stricter Export Rules on AI Chips to China Affect AMD and Nvidia Stock Prices

Senate Bill Triggers Stock Slip for AMD and Nvidia

The stocks of Advanced Micro Devices (AMD) and Nvidia experienced significant declines after the U.S. Senate passed a bill aimed at limiting the export of artificial intelligence (AI) chips to China. This legislative move introduces uncertainty over whether the bill will become law, although numerous government entities and previous agreements remain key factors in the unfolding situation.

Uncertain Future for AI Chip Exports to China

The new Senate bill could disrupt existing agreements, such as the one brokered earlier this year by President Donald Trump, which had eased restrictions on chip exports. Should this bill conflict with existing policies, a veto from the Oval Office is possible. In parallel, the House of Representatives is working on its version of a related bill, but unlike the Senate’s version, it does not impose export restrictions.

Trade War Dynamics and Impact on Manufacturing

The potential changes from the Senate’s bill arise amid ongoing trade tensions between the U.S. and China, as well as President Trump’s focus on reshoring manufacturing. These policies could substantially alter the market landscape for U.S. chipmakers like AMD and Nvidia.

Stock Market Reactions

• AMD: Experienced a 5.46% decrease in stock price. Despite this drop, AMD shares have surged 82.5% year-to-date and have risen 38.72% over the past year.
• Nvidia: Suffered a relatively smaller decline of 1.83% but has still seen its shares grow by 40.85% since the beginning of 2025 and by 42.86% over the past year.

Analyst Preferences: AMD vs. Nvidia

Investors looking to decide between AMD and Nvidia can turn to the TipRanks stock comparison tool for guidance. According to the tool, Nvidia holds a “Strong Buy” consensus rating, reflecting a higher level of analyst confidence compared to AMD’s “Moderate Buy” rating. Nvidia also boasts an upside potential of 16.19%, which is more than double AMD’s 7.98% potential.

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