Nvidia, AMD, or institutions that welcome new opportunities in the Chinese market predict that AMD's revenue will increase by up to 800 million US dollars, Nvidia may increase by 12.5 billion US dollars

The Zhitong Finance App learned that investment agency Raymond James believes that Nvidia (NVDA.US) and AMD (AMD.US) may gain moderate growth potential from the Chinese market.

Analyst Simon Leopold wrote in his report to clients: “There are still many uncertainties, making it difficult to accurately assess the final results, but under the opportunistic scenario, we expect AMD to receive additional revenue of about 500 million to 800 million US dollars, and non-GAAP earnings per share may increase by about 0.10 to 0.20 US dollars;

Nvidia is likely to receive additional revenue of approximately $7 billion to $12.5 billion, corresponding to 2026 non-GAAP earnings per share or an increase of approximately $0.15 to $0.30.” Leopold reiterated Nvidia's “strong buy” rating and AMD's “outperforming the market” rating.

If approved by the government, Nvidia plans to deliver its H200 series GPUs to the Chinese market starting in mid-February next year.

According to three people familiar with the matter, this batch of GPUs is expected to complete the first shipment before the Lunar New Year. Two of these sources said that the first batch of orders will mainly rely on existing inventory, and the estimated shipping scale is 5,000 to 10,000 modules, corresponding to about 40,000 to 80,000 H200 chips.

People familiar with the matter pointed out that after obtaining government approval, Nvidia will further expand production capacity, and related production capacity orders will begin to be accepted in the second quarter of 2026.

On Monday, it was reported that Alibaba (BABA.US) is considering purchasing 40,000 to 50,000 AMD MI308 AI accelerators. Leopold pointed out that Alibaba's potential order could generate sales of $675 million, although this revenue will be realized over multiple quarters.

It is worth mentioning that although the recent days of artificial intelligence (AI) concept stocks have been “not very good,” many Wall Street analysts said that with their sights set on 2026, they will continue to hold chip stocks they are optimistic about. Among them, Bank of America stated that it is expected that Nvidia will continue to maintain a strong growth momentum next year, and there will be a steady stream of new products. Agencies such as Jefferies also specifically recommended Nvidia, Broadcom, etc.