In light of recent events, investment firm Raymond James believes Nvidia (NVDA) and AMD (AMD) could see moderate upside from China.
“Several moving pieces remain, making it difficult to assess the exact outcome, but in an opportunistic scenario, we estimate AMD could see ~$500-$800M of revenue upside and ~$0.10-0.20 of non-GAAP EPS upside, and NVDA could see ~$7-$12.5B of revenue upside, which translates to ~$0.15-0.30 of non-GAAP EPS upside in 2026,” analyst Simon Leopold wrote in a note to clients. Leopold reiterated his Strong Buy rating on Nvidia and an Outperform rating on AMD.
Earlier this month, President Trump said he had approved the sale of Nvidia’s H200 GPUs to China. On Monday, media reports suggested that Alibaba (BABA) was considering purchasing between 40,000 and 50,000 of AMD’s MI308 AI accelerators.
Leopold said the potential order from Alibaba could be worth $675M in sales, albeit over several quarters.
Nvidia and AMD shares were down around 0.7% in premarket trading on Tuesday.
