By Faizan Farooque
Publication Date: 2025-12-11 14:21:00
This article first appeared on GuruFocus.
Advanced Micro Devices (AMD, Financials) traded higher after the U.S. approved Nvidia’s H200 AI chip sales to China under a new 25% revenue-share requirement. The decision lifted Nvidia first but quickly boosted AMD as investors anticipated the policy could apply to its MI300 line, which has been barred from China under prior export rules.
Restricted access to China has limited AMD’s ability to compete for one of the world’s largest AI chip markets despite strong global demand for its accelerators. Nvidia’s approval suggests a path for other suppliers to reenter the region through a controlled licensing system. Traders expect Chinese cloud companies to seek multiple vendors, positioning AMD as a potential alternative should authorization be granted.
Investors seem to be more interested in the potential for increased volume and new client pipelines, even with the revenue-share charge. Any sales to China that are resumed would help AMD’s data center forecast as it heads into 2026, when the firm expects MI300 to be used more widely and cloud collaborations to grow.
The next thing that might affect earnings estimates and market sentiment is the Commerce Department’s official word on whether AMD will get the same permission.
