China plans to limit the use of AMD and INTC chips in state-owned computers
Semiconductor stocks Advanced Micro Devices Inc (NASDAQ:AMD) and Intel Corp (NASDAQ:INTC) are slipping today, following news that China plans to limit usage of their chips and servers in government computers. Both companies accrue a large portion of their revenues from China sales: AMD 15% and INTC 27%.
At last glance, AMD was up 1% at $181.46, brushing off earlier losses. The stock has moved lower since its March 8 record high of $227.30, in part due to competition with Nvidia (NVDA), but still boasts an 82.9% year-over-year lead.
INTC was last seen down 1.4% at $41.97. The stock was in focus just last week after the company received $8.5 billion in government funding for high-end chip manufacturing, in addition to $11 billion in loans. Since the start of the year, the equity is down 17%, though it still sports a 42% year-over-year lead.
Options bears are blasting INTC today, with 72,000 puts across the tape, which is double the put volume that is typically seen at this point. Most popular is the weekly 3/28 39-strike put, where new positions are being opened.