AMD and Intel dip on report China told telecoms to remove foreign chips
Semiconductors are a key focus in the technology trade war taking place between the U.S. and China.
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Shares of Advanced Micro Devices and Intel dipped on Friday after The Wall Street Journal reported that China is ordering the country’s largest telecommunications carriers to cease use of foreign chips.
Chinese officials issued the directive earlier this year for the telecom systems to replace non-Chinese core processors by 2027, the Journal reported, citing people familiar with the matter. The report said the mandate would impact AMD and Intel.
Both stocks traded down as much as 4% on Friday afternoon.
Intel declined to comment on the report. AMD didn’t immediately respond to a request for comment.
China accounted for 27% of Intel’s revenue in 2023, making it the company’s biggest market. AMD generated 15% of sales from China, including Hong Kong, last year. Their reliance on China underscores the continued importance of the world’s second-biggest economy despite U.S. regulations aimed at curbing chip exports to the country and China’s efforts to be less dependent on foreign technology.
China set new guidelines in December to remove U.S. chips from government computers and servers, blocking processors from AMD and Intel, the Financial Times reported last month.
And in October 2022, the U.S. instituted rules designed to limit China’s access to advanced American chips, especially those critical to artificial intelligence technology. Late last year, the U.S. announced new restrictions to prevent the sale of more AI chips to China, seeking to close perceived loopholes in the previous order.
AMD failed to get U.S. approval for an AI chip it designed for China and will need to apply for an export license, Bloomberg reported last month.
Intel has reportedly survived a push by AMD to end its sale of hundreds of millions of dollars’ worth of laptop chips to the U.S.-sanctioned Chinese telecom company Huawei.
Nvidia founder and CEO Jensen Huang looks on as US President Donald Trump speaks at the US-Saudi Investment Forum at the John F. Kennedy Center for the Performing Arts in Washington, DC on November 19, 2025.
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Nvidia on Tuesday said its tech remains a generation ahead of the industry, in response to Wall Street’s concerns that the company’s dominance of AI infrastructure could be threatened by Google’s AI chips.
“We’re delighted by Google’s success — they’ve made great advances in AI and we continue to supply to Google,” Nvidia said in a post on X. “NVIDIA is a generation ahead of the industry — it’s the only platform that runs every AI model and does it everywhere computing is done.”
The post came after Nvidia saw its shares fall 3% on Tuesday after a report that Meta, one of its key customers, could strike a deal with Google to use its tensor processing units for its data centers.
In its post, Nvidia said its chips are more flexible and powerful compared with so-called ASIC chips — such as Google’s TPUs — which are designed for a single company or function. Nvidia’s latest generation of chips are known as Blackwell.
“NVIDIA offers greater performance, versatility, and fungibility than ASICs,” Nvidia said in its post.
Nvidia has more than 90% of the market for artificial intelligence chips with its graphics processors, analysts say, but Google’s in-house chips have gotten increased attention in recent weeks as a viable alternative to the Blackwell chips, which are expensive but powerful.
Unlike Nvidia, Google doesn’t sell its TPU chips to other companies, but it uses them for internal tasks and allows companies to rent them through Google Cloud.
Earlier this month, Google released Gemini 3, a well-reviewed state-of-the-art AI model that was trained on the company’s TPUs, not Nvidia GPUs.
“We are experiencing accelerating demand for both our custom TPUs and Nvidia GPUs,” a Google spokesperson said in a statement. “We are committed to supporting both, as we have for years.”
Nvidia CEO Jensen Huang addressed rising TPU competition on an earnings call earlier this month, noting that Google was a customer for his company’s GPU chips and that Gemini can run on Nvidia’s technology.
He also mentioned that he was in touch with Demis Hassabis, the CEO of Google DeepMind.
Huang said that Hassabis texted him to say that the tech industry theory that using more chips and data will create more powerful AI models — often called “scaling laws” by AI developers — is “intact.” Nvidia says that scaling laws will lead to even more demand for the company’s chips and systems.
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