The Chinese government’s response to punitive Trump tariffs continued on Monday. Bloomberg China reported that the State Administration for Market Regulation initiated a probe on Nvidia (NVDA). It is investigating a breach of monopoly laws.
NVDA stock more likely fell after investors took a partial profit in the artificial intelligence sector. However, sentiment shifted from extreme bullishness to cautious optimism. Advanced Micro Devices (AMD) fell by more, down by 5.57%.
AMD fell despite refuting claims that Amazon (AMZN) Web Services did not see heavy AMD chip demand. Markets are more likely worried that Intel’s (INTC) renaissance in the PC desktop GPU market will hurt AMD. Intel Battlemage is the second iteration of the Arc GPUs. The budget B570 will cost just $219, while the B580 is $249.
AMD paused development of its high-end GPU. It is concentrating its development in the mid-range. Unfortunately, Intel could take AMD’s lower-tier market share. As its technology advances, AMD may lose business in the mid-tier markets.
AMD still needs to thrive in graphics chips. It may leverage its server AI development from the GPU division.
In Monday’s trading, cybersecurity stocks fell. Palo Alto (PANW), CrowdStrike (CRWD), and Palantir (PLTR) dropped by between 4% and 5%. Micron (MU) and Microchip (MCHP) traded higher on the day in the chip sector.
