What's Going On With Advanced Micro Devices Stock Monday?

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares traded lower Monday. AMD, along with the semiconductor industry, may have reacted to reports suggesting Huawei developed an artificial intelligence (AI) chip to challenge NVIDIA Corp (NASDAQ:NVDA).

What To Know: According to the Wall Street Journal, the Chinese technology company developed the Ascend 910D and began approaching other technology companies about testing its capabilities.

Huawei hopes that its Ascend AI processors will be more powerful than the Nvidia H100 chip.

The Ascend 910D utilizes new packaging technologies to integrate more silicon dies together in order to boost performance. However, the chip is reportedly less power-efficient compared to the H100, according to people familiar with the matter.

AMD, along with the semiconductor industry, may have traded lower as investors assess the effects of the increased competition from Huawei on the industry. A stronger Huawei could add pressure to American chipmakers by intensifying global competition in the AI and semiconductor markets.

AMD Price Action: AMD stock closed 0.26% lower at $96.39, according to data from Benzinga Pro.

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