What's Going On With AMD, Intel Stock Monday?

Advanced Micro Devices Inc AMD and Intel Corp INTC shares are trading lower Monday after China announced new guidelines that will phase out AMD and Intel microprocessors in government PCs and servers.

What Happened: China is targeting chipmakers as it continues to work on replacing foreign technology with homegrown solutions. According to a Financial Times report, China has introduced new guidelines that will see foreign microprocessors phased out of government hardware.

Government agencies higher than the township level have reportedly been ordered to purchase "safe and reliable" processors and operating systems. The report indicates that China is also targeting Microsoft's Windows operating system and other foreign database software.

China represented 27% of Intel’s sales last year, making it the company’s largest market. China accounted for 15% of AMD’s sales in 2023, according to Financial Times.

See Also: Apple, Meta, and Google’s Alphabet Under Scrutiny, EU Launches Antitrust Probes

Should I Sell My AMD Or INTC Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Advanced Micro Devices have gained 79.8% year to date. This compares to the average annual return of 33.08%, meaning the stock has outperformed its historical averages. Shares of Intel have gained 40.75% year to date versus its average annual return of -9.27%.

Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Advanced Micro Devices stock currently has an RSI of 22.79, indicating oversold conditions. Intel stock currently has an RSI of 30.11, indicating neutral conditions.

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AMD, INTC Price Action: At the time of publication, AMD shares were down 3.63% at $173.13 and Intel shares were down 3.95% at $40.88, according to Benzinga Pro.

Photo: courtesy of AMD.