Nvidia and AMD Stocks Slide as Biden Administration Considers Export Restrictions

Nvidia faces potential export challenges while AMD grapples with heightened competition and a key downgrade from Goldman Sachs.

Nvidia's stock dropped by 4% and AMD's fell by over 5% following concerns about potential U.S. chip export restrictions and a downgrade for AMD by Goldman Sachs.
Goldman Sachs downgraded AMD from 'Buy' to 'Neutral,' lowering its price target from $175 to $129, citing competition from Arm-based CPUs and slower growth in AI-related GPUs.
Analysts highlighted Nvidia's ability to leverage its diversified product portfolio to counterbalance potential export-related revenue impacts, maintaining a 'Buy' rating on the stock.
AMD's challenges include intensified competition in AI and data center markets, with Arm Holdings gaining traction in CPU markets traditionally dominated by AMD and Intel.
Both companies are set to release key earnings reports in late January and February, which analysts expect will shed light on their strategies to navigate market and regulatory pressures.