How Will AMD Compete With Nvidia In China?

Advanced Micro Devices (AMD) isn’t going to let rival graphics processing unit (GPU) maker Nvidia (NVDA) corner the Chinese artificial intelligence (AI) market without a fight. Instead, AMD has revealed a new custom GPU based on the Radeon AI Pro R9700 that will be sold to AI firms in China.

AMD’s new graphics card will compete with Nvidia’s RTX 50 Series line being sold in China. However, this updated graphics card will likely be weaker than the commercial version that was sold in the U.S. This is due to President Donald Trump’s strict export bans on advanced GPUs to China.

Getting a GPU at the right power to sell in China can be a difficult task. Nvidia tried this already with its MI308 GPU, but it proved to be too powerful to sell in the country. That cost it hundreds of millions of dollars, a mistake that AMD will likely go to great lengths to avoid. Still, it has to sell a GPU similar in power to Nvidia’s Chinese offerings to attract customers. This complicates matters and puts AMD in a tough position.

AMD Analyst Upgrade

In other recent news, AMD stock shrugged off its only Sell rating earlier this week. Four-star HSBC analyst Frank Lee upgraded the semiconductor company’s shares to Hold but didn’t offer a price target.

AMD stock was down 1.77% on Friday, building on an 8.08% drop year-to-date. The company’s shares have also fallen 32.3% over the past 12 months.

Is AMD Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 22 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $126.55, representing a potential 14.05% upside for the shares.

See more AMD stock analyst ratings