Advanced Micro Devices inc. (NASDAQ:AMD) shares rose on Thursday after Reuters reported the company could be exempt from President Donald Trump's proposed 100% tariff on imported semiconductors.
What To Know: According to the report, Trump said the steep tariff would not apply to companies manufacturing chips in the U.S. or those that have committed to doing so.
The move is part of an effort to bring more semiconductor production to the U.S., with exemptions likely benefiting firms such as Taiwan's TSMC, which operates U.S. factories, and by extension its major customers, including AMD and Nvidia.
Trump emphasized that companies receiving exemptions must follow through on their commitments to build in the U.S., warning that failure to do so could result in retroactive charges.
While the remarks were not a formal tariff announcement, they immediately drew international reactions. Countries with significant chip industries, including South Korea, Taiwan and Japan, are expected to secure favorable treatment under trade agreements, while nations like the Philippines and Malaysia have warned of potentially severe economic impacts if the tariffs are applied broadly.
Analysts told Reuters that large, well-capitalized companies with the ability to invest in U.S. manufacturing stand to benefit the most from the proposed policy. The Biden administration's $52.7 billion semiconductor subsidy program, launched in 2022, has already driven major global chipmakers to locate advanced production facilities in the U.S., positioning much of the sector to avoid the steepest tariff rates.
For AMD, the potential exemption eases concerns about cost increases and supply chain disruptions, helping boost investor sentiment and drive Thursday's gains.
AMD Price Action: Advanced Micro shares closed Thursday up 5.69% at $172.40, according to Benzinga Pro.
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