Advanced Micro Devices Inc. (AMD, Finance) is poised for a major rebound in its AI business following news that GPU shipments to China are restarting thanks to a potential $675 million acquisition from Alibaba Group.
The agreement will be a major step forward for AMD's MI308 chip, which is designed to meet U.S. export regulations while meeting high demand for AI acceleration technology in China. Analysts believe this is a sign that AMD is regaining some of the market share it lost to Chinese chipmakers when trade restrictions were introduced.
At AMD's 2025 Financial Analyst Day, the company said earnings per share could rise from less than $4 in 2025 to more than $24 by 2030. This is due to growing demand for data centers and AI infrastructure. Management also said that potential deals with OpenAI and major cloud customers could help the company thrive in the long run.
The chipmaker's ability to return to China's AI industry while complying with U.S. export controls could significantly boost sales into 2026. Analysts believe AMD's high-performance computing division could benefit greatly from additional GPU sales to China. This supports the company's long-term price target of $600.
