Nvidia and AMD Shares Jump With Sales Set to Resume to China. Is It Too Late to Buy the Stocks?

Core Insights - The U.S.-China trade war has shifted, benefiting Nvidia and AMD as the U.S. eases chip export restrictions, allowing these companies to sell AI chips to China [1][6] - Nvidia can resume sales of its H20 GPUs, which were previously halted due to new export rules, potentially recovering billions in revenue [2][5] - AMD anticipates restarting shipments of its MI308 AI chips, which could mitigate an expected revenue loss of up to $800 million [6][14] Nvidia - Nvidia has received assurances from the U.S. government that licenses for chip exports will be granted, indicating a policy reversal from the Trump administration [4] - The company is a dominant player in the GPU market, holding a 92% market share in Q1, and its CUDA software platform enhances its competitive advantage [8][9] - The reopening of the Chinese market is expected to add billions in incremental sales for Nvidia, making its stock more attractive [10] AMD - AMD's AI-related revenue is significantly lower than Nvidia's, but the company has potential for growth if it gains market share [11] - AMD is focusing on AI inference, which is projected to become a larger market than AI model training, and has secured a partnership with a major AI model developer [12] - The company is part of a consortium developing the open UALink standard to compete with Nvidia's NVLink, which could increase the adoption of AMD's chips [13] Market Outlook - The easing of restrictions in China provides AMD with incremental growth opportunities, expanding its total addressable market [14][15] - Both companies are well-positioned to capitalize on the growing AI market, with Nvidia leading in infrastructure and AMD focusing on inference [10][15]