China Aims To Phase Out AMD, Intel Chips From Government Computers: FT

China has begun implementing guidelines that will keep Intel (INTC) and Advanced Micro Devices (AMD) microprocessors out of government PCs and servers, the Financial Times reported Sunday, part of a growing technological decoupling with the U.S. Intel and AMD stock fell modestly early Monday.




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The new guidance also aims to limit use of the Microsoft (MSFT) Windows operating systems as well as foreign database software. That comes as many Chinese government entities and state-owned enterprises have barred the use of Apple (AAPL) iPhones at work.

It’s part of an effort to buoy domestic technology in the face of U.S.-led restrictions on exports to China. The U.S. has barred Nvidia (NVDA) and AMD from selling artificial intelligence chips to China, as well as advanced chip-making equipment. The U.S. also has barred Huawei telecom gear and other technology, pushing other countries to do the same.

The move to curb Intel and AMD chips and Microsoft Windows software stems from the new guidelines released late last year requiring most government entities to purchase “safe and reliable” processors and operating systems.

Intel, AMD Stock

Intel stock fell nearly 4% in premarket trade. Shares edged down 0.2% to 42.57 last week, continuing to trend lower in 2024.

AMD stock sank more than 3% before Monday’s open. Shares tumbled 6% to 179.65 last week, continuing a sharp downtrend since March 8. Shares fell amid strong positive reaction to Nvidia’s next AI chip. NVDA stock was little changed in premarket trade after last week’s 7.35% jump to 942.89, setting a record close on Friday.

Microsoft stock lost a fraction before the open. Shares rose 3% to 428.74 last week, hitting a record high amid general AI optimism and Microsoft’s own AI event.

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson.

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