AMD Stock Pops After U.S. Hints at China AI Chip Reopening

Advanced Micro Devices AMD shares rose about 2% early Tuesday after the U.S. said it will approve Nvidia NVDA H200 AI chip sales to China under a 25% revenue-share arrangement.

Tighter U.S. export rules had previously limited AMD's access to the Chinese market, despite strong demand for its MI300 AI processors globally.

Traders say that if Washington extends similar approval to AMD, the company could resume sales to Chinese cloud and AI firms, potentially unlocking a significant revenue stream.

China's AI chip market often favors multiple suppliers. Analysts suggest AMD's Instinct chips could benefit as a complementary option alongside Nvidia hardware, offering Chinese customers greater flexibility.

The 25% fee may reduce margins, but investors appear focused on market access rather than short-term profitability. AMD's 2026 outlook includes broader MI300 adoption and closer ties with global cloud partners.

Clarity from the Commerce Department regarding AMD's eligibility for export approval could serve as the next catalyst for shares, reflecting renewed international growth prospects.