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Nvidia, AMD, and Other Chip Stocks Fall as Trump Curbs Exports to China

1. AMD expects up to $800 million charges due to export restrictions. 2. Nvidia and AMD shares fell over 6% post-announcement. 3. Export licenses required for selling MI308 chips to China. 4. The PHLX Semiconductor Index dropped 4% amid broader chip stock declines. 5. Nvidia anticipates $5.5 billion charge affecting its fiscal results.

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FAQ

Why Bearish?

The export restrictions and associated charges for AMD significantly impact revenues, akin to past U.S.-China trade tensions causing stock fluctuations.

How important is it?

With significant revenue impact anticipated, the charges and restrictions are critical for AMD's market positioning.

Why Short Term?

Immediate investor reactions based on new regulations could persist but may stabilize once adapted to market changes.

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