AMD Stock: Jumps as Trump Approves Nvidia’s China Chip Sales — Is AMD Next?

TLDR

• AMD stock jumped 2% after-hours following Trump administration’s approval of Nvidia H200 chip sales to China with a 25% revenue-share requirement
• The policy applies to approved customers in China and could extend to AMD, Intel, and other U.S. chipmakers according to Trump’s Truth Social post
• AMD’s AI chip sales to China were heavily restricted last year, blocking access to one of the world’s largest markets
• Wall Street maintains a Moderate Buy rating on AMD with 28 Buy and 10 Hold recommendations and a price target suggesting 28.75% upside
• Chinese President Xi Jinping reportedly responded positively to the chip sales proposal, which requires the U.S. government to receive 25% of revenue

AMD shares climbed roughly 2% in after-hours trading Monday after President Trump announced approval for Nvidia to sell H200 AI chips to China. The move caught investor attention because Trump specifically mentioned AMD would receive the same treatment.

Advanced Micro Devices, Inc., AMD

The policy requires chipmakers to pay 25% of China sales revenue to the U.S. government. Trump posted on Truth Social that the Commerce Department is finalizing details and “the same approach will apply to AMD, Intel, and other GREAT American Companies.”

Chinese President Xi Jinping responded positively to the proposal, according to Trump’s statement. The policy aims to support American jobs, strengthen U.S. manufacturing, and benefit taxpayers.

Export Restrictions Hit AMD Hard Last Year

U.S. export rules implemented last year severely limited AMD’s ability to sell AI chips in China. The restrictions cut off access to a massive market just as global demand for the company’s MI300 chips was accelerating.

Chinese tech companies represent some of the world’s biggest buyers of advanced processors. AMD has been unable to tap this demand while competitors in other regions secured orders.

The company signed an earlier agreement in August to share 15% of China chip revenue with the U.S. government. That deal never materialized into actual sales due to ongoing restrictions.

Competition for Chinese AI Orders

The new policy puts Nvidia in line to restart China shipments first. But major Chinese tech firms typically want multiple suppliers when building AI systems.

AMD’s Instinct chips could become a practical alternative if the company receives export approval. Chinese buyers often prefer having backup options rather than relying on one vendor.

The 25% revenue share will eat into profit margins. But investors appear more interested in gaining access to new customers than worrying about the fee structure.

MI300 Momentum Builds Globally

AMD has seen strong adoption of its MI300 accelerators outside China. The company strengthened partnerships with major cloud providers throughout 2024 and into early 2025.

Opening China sales would add another revenue stream to an already improving data center business. Even limited shipments could provide meaningful growth given the size of the market.

Wall Street analysts rate AMD as a Moderate Buy based on 28 Buy ratings and 10 Hold ratings. The average price target sits at $284.67, representing potential upside of 28.75% from current levels.

The Commerce Department has not yet issued formal approval for AMD chip exports to China. Trump’s post suggests that decision is coming soon, which explains Monday’s after-hours price movement.

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