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AMD drops more than 8% after China unveils domestic DUV lithography
The sell-off followed a July 27 announcement from Shanghai Aishengna about homegrown immersion DUV lithography systems, while AMDs MI300 and upcoming MI400/MI455X accelerators still depend on EUV equipment supplied by ASML.
Advanced Micro Devices shares fell more than 8% on July 30 after China highlighted progress in domestic chipmaking equipment, triggering a broader semiconductor sell-off, according to Yahoo Finance.
The move was tied to a July 27 announcement from a Shanghai manufacturing facility, Shanghai Aishengna, which said it produced homegrown immersion deep ultraviolet, or DUV, lithography systems for domestic fabrication. The outlet said the development is positioned as the first viable domestic substitute for ASML technology that the company has held exclusively for about 20 years, with ASML shares declining sharply as well.
Despite the stock drop, Yahoo Finance pointed to recent company fundamentals, citing AMDs first-quarter results: earnings per share of $1.37 versus a $1.29 consensus estimate, and total revenue of $10.25 billion versus $9.89 billion expected. It also noted data center revenue rose 57% year over year to $5.8 billion.
The outlet argued the China DUV advance may not affect AMDs near term supply chain or pricing because AMDs MI300 series and upcoming MI400/MI455X accelerators rely on extreme ultraviolet, or EUV, lithography supplied by ASML. Yahoo Finance also said that after the decline, AMD was trading near a forward P/E around 60, versus an industry median around 30x.