On July 19, shares of Advanced Micro Devices Inc. (NASDAQ: AMD), a chip maker, surged 5.46 percent to $85.88. The anticipated new law on state funding for the semiconductor sector in the United States was the cause.
The United States Congress is debating a chip measure that may give $52 billion in incentives to domestic semiconductor producers. By fostering the transfer and creation of new industries in the United States, the government hopes to lessen reliance on chip imports from all nations.
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It is also believed that the use of local manufacturing will avoid a recurrence of difficulties with chip shortages for cellphones, automobiles, and other equipment.
Against this context, AMD stock rose, as the business is a major processor producer and may be eligible for some of the subsidies. It should be highlighted that AMD is unlikely to be the primary benefactor of the new regulation because it orders chip manufacturing from third-party suppliers.
At the same time, corporations like Intel Corp. (NASDAQ: INTC) have their manufacturing facilities and plan to establish plants in the United States and Europe.
Many of America’s biggest chipmakers, on the other hand, may obtain subsidies and reduce prices to introduce next-generation semiconductors. As a result, these organizations will have a huge opportunity for long-term growth.
At the same time, the return of chip manufacturing to the United States may result in a substantial drop in technological exports. As a result, American manufacturers’ standing will grow even further.
On August 2nd, AMD will issue its quarterly report. It may provide information regarding the prospective impact of the chip law on the company’s future.
When focusing on technical inventory assessment, traders and investors may also opt to research the ATR or Average True Range. The 14-day ATR for Advanced Micro Devices Inc. (AMD) is now 4.14. The 52-week high price is $164.46, and the 52-week low price is $71.60.
