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Yahoo
4 hours ago
- Yahoo
NVIDIA Corporation (NVDA) Reenters China with U.S. Approval, Eyes $15 Billion AI Chip Boom
We recently compiled a list of the NVIDIA Corporation stands second on our list. NVIDIA Corporation (NASDAQ:NVDA), a global leader in GPU and AI chip design, is reentering the Chinese market after receiving U.S. government approval to resume sales of its H20 AI GPU. These sales were previously halted due to export restrictions, making the July 2025 resumption a major development in the ongoing U.S.-China tech tensions. To further strengthen its position in China, the company launched a new RTX Pro GPU tailored to meet local regulatory requirements, specifically for AI-driven applications such as smart manufacturing and logistics. This strategic move aligns with NVIDIA Corporation (NASDAQ:NVDA)'s broader goal to expand its AI technology footprint in one of the world's fastest-growing AI markets. CEO Jensen Huang has been active in fostering AI cooperation between the U.S. and China, advocating for open-source research and global innovation. His diplomatic outreach reflects the company's commitment to making AI accessible worldwide while navigating geopolitical complexities. To support this expansion, NVIDIA Corporation (NASDAQ:NVDA) has reportedly placed large H20 chip orders with TSMC, signaling robust demand and a ramp-up in production. Analysts estimate these China-bound chips could generate up to $15 billion in revenue, marking a significant financial opportunity for the company. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
6 hours ago
- Yahoo
AMD's quiet move may shock gaming GPU market
AMD's quiet move may shock gaming GPU market originally appeared on TheStreet. PC gamers have had it rough for many years. The crypto boom skyrocketed GPU prices. And when the crypto craze finally died off, then came the AI wave. Parents think Lego is expensive. Yet the strongest gaming cards with Nvidia chips sell for around $3,000. 💵💰💰💵 That is preposterous. A gaming card shouldn't cost as much as a used car. Manufacturers are making cards with just 8GB of VRAM in 2025, just so that they have something to offer for a "reasonable" price. If you are gaming, you aren't buying one of to the only publicly available sales data from one of Germany's largest retailers, the 16 GB version of the GeForce RTX 5060 Ti, is outselling the 8 GB version by more than 16 times, reported TechPowerUp. What is AMD doing? The company isn't even trying to compete with Nvidia in the high-end chip segment; it literally does not have top-tier cards. It could be that lagging behind Nvidia was caused by a strong focus on saving its CPU unit and then focusing on fending off ARM. AMD's AI work has some positive effects on gaming performance AMD () has made massive progress on the CPU front, and while it can't ever relax, the company seems to be slowly but surely shifting its priorities to the GPU front. AMD has put a lot of effort into improving its software. In June, it acquired Brium, a hard-to-find team of compiler and AI software engineers with expertise in machine learning, AI inference, and performance optimization. Yes, the focus is on artificial intelligence, but that market is unfortunately more important to the company than gaming. Nevertheless, some performance gains from the AI front should trickle down to the gaming example of that trickle-down effect is AMD FidelityFX Super Resolution (FSR). FSR allows graphics cards to upscale frames rendered in lower resolution to a higher one, and this method takes less time than rendering frames in higher resolution the normal way. Because of this, the end result is a higher frame rate in supported games. The company's newest line of Radeon RX 9000 series graphics cards offers FSR 4, which uses an AI-accelerated upscaling algorithm to deliver image quality improvements over FSR 3.1. AMD addresses one of the key problems of chiplet design In 2018, AMD launched the second generation of AMD EPYC processors based on the Zen 2 core architecture. It was the first processor to feature an innovative chiplet-based x86 CPU design. Chiplet-based CPU design means that instead of building a big monolithic core, smaller "chiplets" are made. This creates a modular CPU design and makes it easier to construct more powerful chips by just adding more chiplets. AMD uses this technique in its CNDA 4 architecture for its AMD Instinct GPUs and APUs. Unfortunately, AMD's attempt to introduce a chiplet-based design into the RDNA 3 architecture, on which gaming chips are made, wasn't as successful as it had hoped. RDNA 4 ended up being a monolithic design and stuck with only mid-tier cards. More AI Stocks:Chiplet-based design for AI GPUs is much easier, as they have access to high-bandwidth memory (HBM). However, HBM is expensive, and it would raise the prices of the already overpriced GPUs. Fortunately, AMD seems to be staying committed to using this chiplet-based approach, and it successfully patented locality-based data processing on July 8. It is important to note that this patent works for any kind of processing cores; they can be, for example, CPU, GPU, neural processing core, digital signal processor cores, and so on. Coreteks, a technology analysis, hardware reviews, and gaming trends YouTube channel, provided insight about this patent in its commentary: "This new patent addresses one of the key problems that a chiplets GPU for gaming would face, latency from memory accesses and the associated energy costs from moving data around." "If AMD cracks the GPU chiplets problem, they could leapfrog competitors like Nvidia and release a scalable GPU that could truly disrupt the market." Coreteks believes that AMD's chiplet-based GPU is inevitable and that it could also feature 3D stack memory, assumptions that seem reasonable. Anyone interested in the detailed explanation of the patent may want to watch this video. Patents often get approved but never used, and this is sometimes done to prevent competitors from implementing the idea. This isn't AMD's only chiplet-related patent, and they probably know they have to make chiplets work, or they will never regain their market quiet move may shock gaming GPU market first appeared on TheStreet on Jul 20, 2025 This story was originally reported by TheStreet on Jul 20, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
9 hours ago
- Forbes
AMD Stock To $330?
Could AMD stock (NASDAQ:AMD) reach $330 in the next two years? There's a good chance of this happening. How? Consider this, just about four months ago, at the end of April 2025, AMD stock was trading at around $80 levels and has seen a massive rally to close to $180 per share currently. Looking at the valuations, AMD stock trades at about 55x trailing earnings and just about 45x projected 2025 earnings. Is this pricey? No. Especially if you consider AMD's steadily expanding earnings, growing share of the CPU market, and most importantly, the long-growth runway for the artificial intelligence market. In the scenario below, we use AMD's revenues, profitability, and valuation multiples to demonstrate a potential path to a $ 300-plus stock price in the near future. AMD's GPUs Can Drive Revenue AMD's revenues have risen considerably from $6.7 billion in 2019 to about $26 billion in 2024, an annual growth of over 31%, and the momentum can hold up. Consensus projects a close to 25% growth for 2025. However, there is a real opportunity for AMD to grow its sales at an average annual rate of close to 35% for the next two years, led by growth in accelerated computing space and its new GPUs. Its revenues could move from an estimated $32 billion in FY'25 to around $58.3 billion by FY'27, or an over 80% increase. Several trends could drive this continued growth. Separately, if you are looking for potential gains with reduced volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative—having surpassed the performance of the S&P 500 and produced returns of over 91% since its inception. More capable AI chips from AMD: AMD is likely to see strong tailwinds from the generative AI trend, as graphics processing units have become the de facto chips for running AI-related workloads. To be sure, Nvidia makes the best AI chips in the market and has a hardware and software ecosystem that is well entrenched with big cloud providers. However, there remains a considerable opportunity for AMD. At its AI Day earlier this year, AMD unveiled its latest MI350 lineup, which it says will deliver 4x the AI compute performance of its predecessor. Beyond hardware, AMD is building out its AI software and systems stack. These moves could also strengthen AMD's ROCm software stack, which takes an open-source, standards-based approach, a contrast to Nvidia's proprietary CUDA ecosystem. AMD appears confident about its AI products. Earlier this week, there were reports that the company would bump up pricing on its Instinct MI350 AI GPUs from $15,000 to $25,000 - a 70% hike (related: See how artificial general intelligence can 2x Nvidia stock). Inference Can Drive AI Market Share: As a larger mix of AI workloads will shift to inference - essentially using the built models in real-world applications - where efficiency and cost matter more than brute force computing power, AMD could see gains. Costs are also becoming a concern for end-customers of AI chips, as Nvidia's strong pricing power has pushed its net margins above 50% in recent quarters. This could benefit AMD, as customers look for more affordable alternatives to build out data centers quickly. This trend is already playing out. For example, Oracle chose AMD's accelerated computing chips to power its latest super cluster for high-intensity AI workloads, after testing showed AMD's GPUs delivered low latency and strong performance at a competitive price. Even after the reported price hike, AMD's MI350 would still undercut Nvidia's entry-level Blackwell B200, while offering superior specs (related: AMD Stock's Big AI Opportunity Is Taking Shape). Overall, there is plenty of room for growth. AMD estimates that the market for AI accelerator chips will reach approximately $400 billion in 2027. HSBC projects that AMD could see AI-related sales exceed $15 billion by 2026, compared to over $5 billion in 2024. The large market size and continued momentum should make a 35%+ growth in total revenues over the next two years a real possibility. Higher-End Products Can Drive Margins Combine this robust revenue growth with the fact that AMD's adjusted net margins (net income, or profits after all expenses and taxes, calculated as a percent of revenues) are on an improving trajectory - they grew from levels of about 11% in FY'19 to over 21% in FY'24 as the company sees better economies of scale and a more favorable product mix skewed toward complex data center products. Margins could potentially trend still higher to levels of about 25%, as AMD sees higher GPU sales with higher economies of scale, improving its fixed cost absorption. Now, combining 25% adjusted net margins, with about $58 billion in revenue, would translate into earnings of about $14.5 billion. That's a roughly 2.7x increase from levels seen in 2024. Strong Results Mean A Smaller Contraction In Earnings Multiples Now, if earnings grow 2.7x, the price-to-earnings multiple will shrink by 2.7x to levels of about 21x, assuming the stock price stays the same. But that's exactly what AMD investors are betting will not happen. If earnings expand 2.7x over the next few years, instead of the P/E shrinking from a figure around 55x now to about 21x, a scenario where the PE metric stays at about 40x looks quite likely, as stronger growth and expanding margins give investors more confidence about AMD's future. This would make the growth of AMD stock to levels of close to $330 within the next few years a real possibility. So what about the time horizon for this high-return scenario? While our above example illustrates a roughly two-year time frame, in practice, it won't make much difference whether it takes two years or three, as long as AMD is on this revenue expansion trajectory, with margins holding up, the stock price could respond similarly. While AMD stock may have considerable potential, investing in individual stocks can be risky. As an alternative, the Trefis Reinforced Value (RV) Portfolio has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.
