Shares in Advanced Micro Devices (AMD) climbed today despite China throwing down another technological gauntlet to the U.S. with a new $11 billion fund to boost semiconductors development.
But the pledge from the Industrial and Commercial Bank of China, which is the world’s biggest commercial lender by assets, failed to faze leading Stars and Stripes stocks such as AMD which was up 3% in pre-market trading and Nvidia which was 4.5% higher.
China Goes Hard
The bank has launched the technology and innovation fund to support China’s private economy. The new fund, as reported by Reuters, aims to support “hard technology” via equity investment, referring to areas such as semiconductors and advanced manufacturing over “soft” technology such as internet services. The chairman of the lender, Liao Lin, said that it would “thoroughly implement directives from central leadership by transforming beneficial policies into concrete actions supporting private enterprises.”
The move comes after China last week laid out its major policy priorities for 2025 at its annual parliamentary meeting. This included plans to boost technological innovation amid geopolitical tensions between China and the U.S., particularly over President Trump’s tariffs policy. One example is a government-backed fund that would mobilize funding to support technology startups.
Home Stocks Disappoint
It also builds on a meeting earlier this year between President Xi and private tech leaders, such as Jack Ma of Alibaba (BABA), who have been left ‘out in the cold’ in recent years. However, since Trump’s return to office, that page seems to have been well and truly turned.
Despite the fund launch BABA was down in pre-market trading, as was Chinese peer Baidu (BIDU).
Is AMD a Good Stock to Buy Now?
On TipRanks, AMD has a Moderate Buy consensus based on 25 Buy, 11 Hold and 1 Sell rating. Its highest price target is $225. AMD stock’s consensus price target is $147.88 implying an 52.83% upside.
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