CNBC's Kristina Partsinevelos joins 'Power Lunch' to discuss the latest news on the chips sector, what to expect in AMD earnings, and much more.

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

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The semiconductor industry has seen notable fluctuations, with major chip stocks like Nvidia and Broadcom falling, while Intel shares rose due to discussions about increasing chip manufacturing on U.S. soil. However, Intel's foundry business is facing significant difficulties, with reports indicating a lack of confidence in its ability to produce advanced chips domestically. 

Negotiations involving companies such as TSMC and potential changes to tariff structures are ongoing, with rumors suggesting TSMC could take a stake in Intel to facilitate lower tariffs. Meanwhile, AMD's stock has surged, driven by expectations around its advancements in AI chips and strategic acquisitions, although high investor expectations have led to volatility across the sector following earnings reports.

Should investors expect more chip tariffs?

Well let's talk about this and about the semi-space in general. Christina Parts Neveless joins me now with more. Hi Christina. Hi Morgan. It's funny when he said that you did see the reaction in the chip sector. Many of the you know the common names Nvidia Broadcom the Sox ETF all falling today. There was one outlier and that was Intel. Intel shares are actually positive today. That's because President Trump really brought up the point of building on U.S. soil. When you think about all the options to build on U.S. soil there aren't many. There's TSMC in Arizona. There's a few other locations. You have Samsung specifically more towards memory global foundries which is more lagging edge. And so for Intel it would seem like that would be the obvious answer. The problem is Intel's foundry business. And Morgan I know you know this because we talked about in the four o'clock show just it's really been struggling. Their most recent earnings report they posted a 10 Q and they said that if they do not get an external customer for their more advanced process they're working on called 14 a then they're willing to forego all of their production plan specifically for that line that more advanced line. They also said they were willing to work with other foundries if they can't get that line off the ground. And then another report today Reuters saying that there's issues with 18 a and that there may not be as many chips made. Sorry on this advanced process. So that just goes to show that the lack of confidence in this foundry business. So it's it's difficult to see how President Trump would say that it's going to be Intel coming to the rescue when Intel itself is struggling so much to build advanced chips on U.S. soil. Yeah I thought the move in global foundries after their earnings today. Speaking of foundries in the U.S. was very interesting as well. Christina how's this going to set us up for AMD earnings. Yeah just there's one point I wanted to add to that in regards to the foundries though Intel. There is a rumor coming from Taiwanese outlets that you know TSMC is being used as a middleman right now for between Taiwan and U.S. negotiations. They're saying that TSMC could potentially have to take a forty nine percent stake in Intel in order to get their tariffs lowered to 15 percent. Right now it's at 20 percent. So it's just interesting how they're using that as a chip for a chip in their negotiations for AMD to answer your question which is what you want to know. AMD stock has really run up about 46 percent year to date more than any other chip out there. So expectations are very high. Why are expectations high. Because investors believe that AMD can finally get a piece of that A.I. pie. There's a you know the M.I. 3 5 or 300 series more advanced 3 5 5 X. That is moving forward. You have the China sales that are coming back into play now that they are able to ship with a license. You have these rack solutions AMD acquired ZT systems and that's allowing them to provide an entire rack versus just the chip. And that allows them to better compete against NVIDIA. And then you also have the CPU gains against Intel. So there's many reasons for this bull thesis. But as we saw Morgan with so many other chip names expectations are so high. Texas instruments on semi lattice. The list continues that you really saw their stocks drop dramatically post earnings when it just didn't hit that threshold of expectations. OK we'll see what we get after the bell. I thought what you did there to chip negotiations. Christina Barton Avalos.

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Should investors expect more chip tariffs?

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