AMD's AI Business Set to Rebound with $675M Alibaba Deal and GPU Shipments to China
Brief news summary
Advanced Micro Devices Inc. (AMD) is poised for a significant rebound in its AI business as GPU shipments to China resume, highlighted by a potential $675 million deal with Alibaba Group. This agreement features AMD’s MI308 chips, designed to comply with U.S. export controls while addressing China’s robust demand for AI acceleration technology. Analysts view this as AMD regaining market share lost to Chinese competitors due to trade restrictions. At its 2025 Financial Analyst Day, AMD projected a sharp rise in earnings per share from under $4 in 2025 to over $24 by 2030, driven by expanding data center and AI infrastructure needs. Management also outlined plans for partnerships with OpenAI and major cloud providers to sustain long-term growth. By adhering to export regulations and reentering China’s AI market, AMD expects a significant sales boost by 2026. Analysts predict the company’s high-performance computing segment will benefit substantially, supporting a long-term stock price target of $600.This article originally appeared on GuruFocus. Advanced Micro Devices Inc. (AMD, Financials) is poised for a significant rebound in its AI business following news that GPU shipments to China have resumed, fueled by a potential $675 million deal with Alibaba Group. This agreement marks a major advancement for AMD's MI308 chips, which are engineered to comply with U. S. export regulations while meeting the strong demand for AI acceleration technology in China.
Analysts view this as a sign that AMD is reclaiming market share lost to Chinese chipmakers after trade restrictions were implemented. During AMD's 2025 Financial Analyst Day, the company projected that earnings per share could increase from under $4 in 2025 to over $24 by 2030, driven by rising demand for data centers and AI infrastructure. Management also mentioned that potential partnerships with OpenAI and major cloud providers could further fuel long-term growth. AMD’s ability to re-enter the Chinese AI market while adhering to U. S. export rules could significantly boost its sales heading into 2026. Analysts believe AMD's high-performance computing segment stands to gain considerably from increased GPU sales to China, supporting a long-term price target of $600 for the company.
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AMD's AI Business Set to Rebound with $675M Alibaba Deal and GPU Shipments to China
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