Advanced Micro Devices (AMD) Stock: Gains 6.4% on China GPU Shipment News

TLDR

Table of Contents

AMD stock surged 6.4% to $155.61 after announcing plans to restart MI 308 GPU shipments to China
The stock has gained nearly 90% since hitting a 52-week low in early April 2025
HSBC upgraded AMD from “hold” to “buy” and doubled its price target from $100 to $200
Data center revenue jumped 57% year-over-year last quarter, driven by AI chip demand
Trading volume exceeded 91 million shares, well above moving average levels

Advanced Micro Devices stock closed at $155.61 on Tuesday, marking a sharp 6.4% gain for the day. The rally pushed AMD shares above a key technical entry point of $147.75.

Trading volume reached over 91 million shares, well above the stock’s moving average. After-hours trading showed a slight pullback to $155.10.

The surge came after AMD announced plans to restart shipments of its MI 308 GPU to China. This move follows Nvidia’s own return to the Chinese market.

🇺🇸 Nvidia and AMD can once again ship their trimmed H20 and MI308 AI chips to China, because the Trump team figures that selling older gear slows Huawei more than it strengthens Beijing labs.
🐉AI czar David Sacks calls H20 a deprecated chip. By letting it flow, Washington… pic.twitter.com/AAOG247ayS
— Rohan Paul (@rohanpaul_ai) July 16, 2025

The development has sparked speculation that U.S. regulatory headwinds for chip exports may be easing. China represents a crucial market for semiconductor companies competing in the AI space.

AMD’s recent performance marks a dramatic turnaround from earlier this year. The stock hit a 52-week low in early April before staging an impressive comeback.

Since that April low, AMD shares have soared nearly 90%. The rally has been fueled by strong revenue growth in the company’s data center segment.

Analyst Upgrades Drive Momentum

HSBC recently upgraded AMD from “hold” to “buy” rating. The investment bank also doubled its price target from $100 to $200.

HSBC cited a narrowing performance gap between AMD’s AI chips and Nvidia’s offerings. The upgrade reflects growing confidence in AMD’s competitive position.

Wells Fargo also raised its price target on AMD shares. The bank forecasts potential upside of nearly 20% ahead of AMD’s next earnings report.

Data center revenue jumped 57% year-over-year in the most recent quarter. This segment has become increasingly important as demand for AI processing power grows.

The company launched its latest MI350 GPUs in June 2025. These chips reportedly deliver a 35x increase in inferencing performance compared to previous generations.

Strong Product Pipeline Supports Growth

The MI350 launch has been viewed as a turning point for AMD’s AI ambitions. Analysts now see the chips as real contenders against Nvidia’s dominant position.

Investor Kevin George, who holds a 5-star rating, believes AMD is well-positioned for AI growth. He cites the MI350’s strong performance metrics as a key driver.

George also highlights AMD’s expanding partnerships with major tech companies. The company now works with OpenAI, Microsoft, and Meta on various AI initiatives.

These partnerships validate AMD’s AI ecosystem and expand its market opportunities. They signal growing industry acceptance of AMD as a reliable AI partner.

Beyond AI chips, AMD’s traditional gaming business remains strong. The company’s Ryzen processors continue to dominate gaming market share.

AMD’s Client & Gaming division has seen margins improve from 10% to 17% over the past year. This provides a stable foundation even as the company pursues AI market share.

Wall Street maintains a Moderate Buy consensus on AMD stock. The rating is based on 25 Buy recommendations and 10 Hold ratings.

The average 12-month price target stands at $135.97, approximately 7% below current trading levels. This suggests the recent rally has outpaced analyst expectations.

AMD is scheduled to report its next quarterly earnings on August 5, 2025. Investors will be watching for updates on product rollouts and market share gains against Nvidia.

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