AMD Stock Soars as Chinese AI Rivals Fail to Dent Its Dominance

Advanced Micro Devices (AMD) just flexed its silicon muscles—and Wall Street's loving it. While analysts predicted a bloodbath from China's AI chip push, AMD's stock chart looks more like a SpaceX trajectory. Here's why the bears got it wrong.

The Unstoppable Force vs. The Moveable Object

Beijing poured billions into homegrown AI processors, but AMD's latest earnings show something brutal: engineers still prefer architectures that actually work. The company's MI300X accelerators are outselling knockoffs 3-to-1—turns out 'patriotic procurement' can't fix latency issues.

Short Sellers Meet Reality

Hedge funds betting against AMD got steamrolled when Q2 guidance smashed estimates. The 'China threat' narrative collapsed faster than a metaverse startup—though let's be honest, most fund managers still can't explain how GPUs work.

AMD isn't just surviving the AI wars; it's taking territory. While rivals drown in geopolitical drama, Lisa Su's team keeps shipping chips that don't need a firewall to perform. The lesson? In tech, execution beats rhetoric every time. (But sure, keep buying those 'next-gen' Chinese AI ETFs.)

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Chinese Wave

The warning that a wave of over 100 DeepSeek-style breakthroughs will emerge in the coming 18 months came today from Zhu Min, who was previously a deputy governor of the People’s Bank of China.

Speaking at the World Economic Forum in Tianjin, Zhu said that new Chinese software products will “fundamentally change the nature and the tech nature of the whole Chinese economy.”

Zhu said this transformation was being driven by China’s pool of engineers, massive consumer base and supportive government policies.

Indeed, Bloomberg Economics estimates the contribution of high-tech to China’s gross domestic product climbed to about 15% in 2024 — from NEAR 14% a year earlier — and could exceed 18% in 2026.

AI Race

DeepSeek shook up the previously all-conquering U.S. tech sector, and their share prices, earlier this year with its low-cost but just as powerful technology.

The U.S. and China are leading the race to develop AI technologies as demand for technology grows in business and society.

That race for AI dominance has become more intense this year thanks to the emergence of DeepSeek and the promise of more to come, but also the deepening trade tensions between the two countries.

That’s down to President Trump’s tariffs tirade but also export controls on U.S. technology to China such as the clampdown on chip exports from Nvidia on national security grounds.

Beijing, however, has an answer to that with the growing dominance of domestic tech giant Huawei.

However, despite the Chinese claims, Nvidia stock was up 1% and AMD ROSE 3%.

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