AMD(US:AMD) Zhi Tong Cai Jing·2025-08-14 06:16Core Viewpoint - AMD has agreed to share 15% of its AI GPU sales in China with the U.S. government in exchange for export licenses, which has raised concerns, but analysts believe the impact on AMD's profitability will be minimal [1] Group 1: Financial Impact - Citigroup analyst Christopher Danely maintains a "neutral" rating on AMD with a target price of $180, noting that the stock's valuation is slightly above its historical average [1] - The agreement primarily affects low-margin products like the MI308X, which has a profit margin significantly lower than AMD's average margin of nearly 54% [1] Group 2: Growth Projections - AMD's mainstream AI GPUs, specifically the MI355 and MI400, are expected to drive significant growth, with AI sales projected to reach $6.2 billion in 2025 (a 23% increase) and $9.9 billion in 2026 (a 58% increase) [1] - Key customers contributing to this growth include Amazon, Oracle, Meta, and OpenAI [1] Group 3: Competitive Landscape - Competitor NVIDIA has also signed a similar export agreement with China [1] - Wall Street currently rates AMD as "moderate buy," with analysts estimating an average upside of about 5% from current levels [1]