Advanced Micro Devices (AMD) stock experienced a significant downturn on October 10, 2025, tumbling as part of a broader market sell-off. The decline was primarily fueled by renewed threats of a "massive increase" in tariffs on Chinese goods by the US, which in turn followed China's tightened export controls on rare earth materials. Compounding the negative sentiment, the US Senate passed a bipartisan bill requiring chipmakers like AMD and Nvidia to prioritize American customers for AI chip supplies before fulfilling orders for China. This confluence of geopolitical and legislative events triggered investor concern over potential disruptions to AMD's crucial Chinese market and global supply chains, leading to a sharp drop in its stock price. The market reaction was swift, with AMD's shares sinking 7.8% during trading on October 10. The news overshadowed the recent positive momentum from AMD's major partnership with OpenAI announced earlier in the week.