
Evercore Sees Major Revenue Upside for AMD after Trump Lifts China AI Chip Ban
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
As a result, the firm's analysts, led by five-star-rated Mark Lipacis, anticipate that this will result in a near-term revenue boost of $700 million and a potential $1.5 billion gain in 2025. This is because AMD had previously estimated that export restrictions would lower second-quarter revenue by about $700 million and reduce 2025 revenue by $1.5 billion. It is worth mentioning that Evercore currently expects AMD's GPU revenue for 2025 to be around $6 billion, so restoring access to the Chinese market could be a major help.
The analysts also noted that this could improve AMD's profit margins. In April, AMD projected an $800 million write-down due to unsold inventory and supplier agreements, which pushed Q2 gross margin guidance down to 43% from 54%. While it's unclear if the full write-down was booked in Q2, Evercore believes that the MI308X has better margins than AMD's other GPUs. Therefore, if shipments pick up again, it could provide a solid boost to the company's profitability.
Is AMD a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on AMD stock based on 25 Buys, 10 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMD price target of $135.97 per share implies 12.6% downside risk.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Tom's Guide
10 minutes ago
- Tom's Guide
The SharePoint flaw has now hit over 400 companies including a US nuclear administration
The SharePoint vulnerabilities that Microsoft released emergency patches for earlier this week – tracked as CVE-2025-53770 and CVE-2025-53771 – have been exploited much further than previously thought. As reported by Bloomberg, the number of companies and organizations affected by the two exploits has grown to more than 400 in just a few days. Dutch cybersecurity company Eye Security, which noticed some of the early attacks, said the hackers involved have now breached government agencies, corporations and groups from countries around the world including the U.S., Europe, Asia and the Middle East. One of the highest profile agencies involved is the National Nuclear Security Administration, a U.S. agency that maintains the nations stockpile of nuclear weapons. Others include the U.S. Department of Education, Florida's Department of Revue, and the Rhode Island General Assembly. Organizations include government agencies, education departments and technology services. The SharePoint vulnerabilities allow threat actors access to those servers in order to steal keys that would allow them to impersonate users or services in phishing attacks. This means they could potentially gain access to networks where they could steal data, even that of a confidential or sensitive nature. Though Microsoft has issued patches to fix the flaws, researchers have cautioned that hackers may have already gained access to many of the targeted servers. The Eye Security researchers have cautioned that the number of companies hacked may still grow as there are ways to compromise servers that do not leave traces, and that other "opportunistic" hackers may continue to exploit vulnerable servers. Companies who have not yet issued a patch for their SharePoint servers should do so immediately following Microsoft's instructions which include rotating machine keys and analyzing the logs and file system for signs of system exploits. Microsoft has pointed the finger at both the Linen Typhoon and Violet Typhoon groups at being behind these attacks; both groups are said to be Chinese state-sponsored hacking groups. A third Chinese based hacking group, referred to as Storm-2603, is also said to have used the exploit in the wild. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. Follow Tom's Guide on Google News to get our up-to-date news, how-tos, and reviews in your feeds. Make sure to click the Follow button.
Yahoo
an hour ago
- Yahoo
Jim Cramer on Advanced Micro Devices: 'It's Going in the Right Direction'
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks that Jim Cramer shed light on. A caller asked if Cramer thinks CEO Lisa Su can take the company to a trillion-dollar market cap, and he replied: 'I don't know, but it's going in the right direction. I mean, they obviously have now good GPUs. There's a GPU shortage everywhere. Stock's had a real big run off the bottom. I do think it could have a pullback, but I do think that she's got what it takes to be able to take that stock much higher.' Advanced Micro Devices (NASDAQ:AMD) is a global semiconductor company that designs and supplies microprocessors, graphics cards, chipsets, and embedded processors. On June 9, Cramer remarked: 'So traders say if I can't make money after Broadcom reporting a great quarter, the playbook says time to move into the lower quality, cheaper stocks that are less likely to disappoint or should never have been down to begin with. I understand the sentiment, but the problem is that these stocks have already rallied pretty hard, too…I saw some upgrades for AMD…. They've moved, especially AMD by the way, on speculation it might be involved with any China deal. Rare earth materials for us, AMD chips for them. While we acknowledge the potential of AMD 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: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información


CNBC
an hour ago
- CNBC
Amazon closes Shanghai AI research lab in latest cost-cutting move
Amazon is shuttering its research lab in Shanghai focused on artificial intelligence development, the latest belt-tightening move by the e-commerce and cloud computing giant. Wang Minjie, an applied scientist at the lab, wrote in a WeChat post earlier this week that Amazon disbanded the team due to "strategic adjustments amid U.S.-China tensions." Amazon spokesperson Brad Glasser said in a statement that the company "made the difficult business decision to eliminate some roles across particular teams" in its Amazon Web Services unit. The Financial Times was first to report on the lab closure. Amazon announced layoffs at AWS last week, with U.S. teams focused on marketing and training and certification among those that were impacted. Geopolitical tensions between the world's two largest economies have pushed a growing number of American corporations to reduce or discontinue their operations in China. President Donald Trump's aggressive tariff policies have accelerated that shift, while the Chinese government has called for self-sufficiency in AI and technology development. The U.S. has also placed restrictions on China, limiting its ability to buy chips and chip-making equipment, including from companies like Nvidia and Advanced Micro Devices, that can be used to train AI models. Some of those restrictions have since eased. AWS established the Shanghai lab in 2018 with a focus on areas like natural language processing and machine learning. The company has retreated from China over the past several years. In 2022, Amazon discontinued its Kindle e-book store in the region, after shuttering its e-commerce marketplace in China in 2019.