Advanced Micro Devices Inc ( AMD ) shares are experiencing some weakness Monday ahead of earnings this week. Here’s a look at what you need to know.

What To Know: AMD is set to report fourth-quarter financial results after the market close on Tuesday. The chipmaker is expected to report earnings of $1.08 per share and revenue of $7.53 billion, according to estimates from Benzinga Pro.

AMD shares are facing some selling pressure on Monday alongside broader markets after U.S. President Donald Trump signed executive orders on Saturday to impose 25% tariffs on Canada and Mexico and 10% tariffs on China, which are expected to take effect on Tuesday.

AMD shares have trended lower in recent months as the U.S. has ramped up restrictions on AI chip exports due to national security concerns. AMD stock is down about 19% since the company last reported earnings.

In a new note to clients on Monday, Northland Capital analyst Gus Richard brushed off AI demand concerns and noted that the biggest cloud service providers (CSPs) are not adjusting their spending plans.

“We believe more GPU capacity will be needed as more computing is required for post-training and RLM Interference. The risk is that enhanced export controls will impact the flow of AI chips into China,” Richard said.

“It is important to note that only the AI chips need to be smuggled. China has access to chips and the capability to build an AI cluster. They only need to smuggle in the GPUs.”

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Several AI-related names sold off last week as investors weighed the potential for Chinese startup DeepSeek to disrupt America’s AI lead. The company reportedly developed its open-source LLM in a couple of months at a much lower cost than competitors. 

Richard also flagged recent rumors that Microsoft Corp ( MSFT ) has grown frustrated with AMD. The Northland Capital analyst noted that the frustration is likely related to the company’s open-source software, which is not as well developed as Nvidia Corp’s Cuda.

“However, DeepSeek has just demonstrated the power of an open-source model. CSPs buy product road maps, and AMD has proven that it can take on an entrenched competitor and win in the server market. We think CSPs have good visibility in AMD’s product roadmap and are confident in their ability to execute,” Richard said.

The Northland Capital analyst has an Outperform rating on AMD shares with a price target of $175.

AMD Price Action: AMD shares were down 1.67% at $114.01 at the time of publication Monday, according to Benzinga Pro.

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