AMD Stock Jumps on U.S. Approval of Nvidia’s China Chip Sales, AMD Could Be Next
AMD shares rose 2% in after-hours trading following the Trump administration's decision to allow Nvidia to sell its H200 AI chips to China under a revenue-sharing agreement. The policy mandates that 25% of sales revenue from approved Chinese customers be paid to the U.S. government. President Trump indicated on Truth Social that AMD, Intel, and other U.S. chipmakers would receive similar treatment, pending finalization by the Commerce Department.
The move marks a potential reversal for AMD, which faced severe restrictions on AI chip sales to China last year. Wall Street maintains a Moderate Buy rating on the stock, with a consensus price target implying nearly 29% upside. Chinese President Xi Jinping reportedly responded favorably to the proposal, which the TRUMP administration framed as a measure to bolster American jobs and manufacturing competitiveness.
