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AMD CEO Lisa Su Says ‘We Absolutely Should Bring Manufacturing Back to the US’ - TipRanks.com
Advanced Micro Devices (AMD) CEO Lisa Su was asked about incentives to bring chip manufacturing to the U.S. during an interview with Wired. In response, she said, “We absolutely should bring manufacturing back to the US. Absolutely, 100 percent.”
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When asked why Su believes manufacturers should return to the U.S., she highlighted several advantages to doing so. Included among them were national security, economic interests, and good business practice. All of this is part of an effort to diversify supply chains and avoid delays, such as those caused during the lockdowns of the COVID-19 pandemic.
While some have been skeptical about returning chip fabrication to the U.S., Su believes it is doable. However, it will come at a cost. The AMD CEO noted, “It is more expensive, and that’s OK, too. I think it requires a change of mentality, that you don’t always go for the lowest-cost thing.”
AMD Stock Movement Today
AMD stock was up 0.07% on Tuesday, extending a 42.7% year-to-date rally. The shares have also increased 22.07% over the past 12 months.
A recent catalyst for AMD shares was a deal with the U.S. government to sell AI chips in China. This will have it pay 15% of these sales to the government. Rival semiconductor company Nvidia (NVDA) has signed the same deal to allow AI chip sales to China. While this could impact the two companies’ financials, it opens the way for chip sales to an area with high demand.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 26 Buy and 12 Hold ratings over the past three months. With that comes an average AMD stock price target of $181.36, representing a potential 5.46% upside for the shares.