Shares in Advanced Micro Devices stock (AMD) fell on Friday amid new threats of tariffs towards China. The new Trump tariffs against China caused several Chinese stocks to dip in value. US President Donald Trump said in a social media post on Friday that China has become “very hostile” by sending letters to other countries in hopes of imposing export controls on “each and every element of production having to do with Rare Earths, and virtually anything else they can think of, even if it’s not manufactured in China.”

“Dependent on what China says about the hostile ‘order’ that they have just put out, I will be forced, as President of the United States of America, to financially counter their move,” Trump said in a post on Truth Social on Friday.

AMD Ends a Strong Week on a Bad Note

The dip in AMD shares came after a solid-performing week for the hardware company. This week, AMD announced a multi-billion-dollar deal with OpenAI. The chipmaker will provide upward of 6 gigawatts of GPUs to the AI juggernaut over several generations, starting with its MI450 chips in the second half of 2026, per a Monday announcement. In return, OpenAI will take a stake in AMD worth up to 160 million shares, or roughly 10% of the company. The news drew in plenty of investor interest, catapulting shares higher.

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Further, Recent supply chain checks point to AMD seeing slowing growth in its AI accelerator business. AMD remains a key player in the data center market, but growing competition appears to be waning among Wall Street experts. Currently trading at $219, the stock is up 38% in the last 30 days, which could trump those growth concerns.

Despite this, analysts remain optimistic about AMD’s AI business growth, maintaining a $250 price target on average. AZ holds the $250 target, while Rosenblatt is similarly optimistic as AZ, with a $250 target. Meanwhile, Goldman Sachs has a more cautious Neutral stance with a $140 target. Therefore, while $250 is optimistic, it’s far more likely that AMD could remain around its current $220 level.

AMD is considered the most under-owned semiconductor stock, despite outperforming the sector this year and having a strong sales growth outlook. The growing demand in the AI and data center markets is viewed as a key opportunity for AMD to rally, particularly with the introduction of products like the MI355 GPU