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Evercore Sees Major Revenue Upside for AMD after Trump Lifts China AI Chip Ban

Evercore Sees Major Revenue Upside for AMD after Trump Lifts China AI Chip Ban

Investment firm Evercore believes that chipmaker Advanced Micro Devices (AMD) could see upside to its 2025 revenue estimates after the company announced it will resume shipments of its MI308X chips to China. Indeed, the U.S. Commerce Department has confirmed that AMD's license applications for these chips are now moving forward for review. Once approved, AMD plans to restart shipments and provide more details during its August 5 earnings call, according to Evercore.
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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.
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S&P Futures Gain With Focus on U.S. JOLTs Report and Corporate Earnings, FOMC Meeting on Tap
S&P Futures Gain With Focus on U.S. JOLTs Report and Corporate Earnings, FOMC Meeting on Tap

Yahoo

time5 minutes ago

  • Yahoo

S&P Futures Gain With Focus on U.S. JOLTs Report and Corporate Earnings, FOMC Meeting on Tap

September S&P 500 E-Mini futures (ESU25) are trending up +0.24% this morning, extending yesterday's gains, while investors shift their focus from recent U.S. trade deals to economic data, a new round of corporate earnings reports, and the start of the Federal Reserve's two-day policy meeting. In yesterday's trading session, Wall Street's main stock indexes closed mixed, with the S&P 500 and Nasdaq 100 notching new all-time highs. Super Micro Computer (SMCI) surged over +10% and was the top percentage gainer on the S&P 500 amid optimism that demand for its AI servers will remain strong. Also, Advanced Micro Devices (AMD) climbed more than +4% and was the top percentage gainer on the Nasdaq 100 following reports that the chipmaker plans to raise the price of its Instinct MI350 AI accelerator from $15,000 to $25,000. In addition, Nike (NKE) rose over +3% and was the top percentage gainer on the Dow after JPMorgan upgraded the stock to Overweight from Neutral with a price target of $93. 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Trump says he's not ‘seeking' summit with Xi
Trump says he's not ‘seeking' summit with Xi

The Hill

time6 minutes ago

  • The Hill

Trump says he's not ‘seeking' summit with Xi

President Trump said that he is not looking for a summit with Chinese President Xi Jinping, pushing back on reporting that the tariff talks this week could set the groundwork for a meeting with his counterpart. 'The Fake News is reporting that I am SEEKING a 'Summit' with President Xi of China. This is not correct, I am not SEEKING anything!' Trump said on Truth Social. 'I may go to China, but it would only be at the invitation of President Xi, which has been extended. Otherwise, no interest! Thank you for your attention to this matter.' Talks between the U.S. and China are going on in Stockholm this week with Treasury Secretary Scott Bessent and his counterparts, which marks the third round of talks between the two nations. The meeting could set up an extended tariff truce, which could lead to a meeting with Trump and Xi later this year, NBC News reported. China and the U.S. are facing an Aug. 12 deadline following agreements announced in May and June that brought down mutually imposed triple-digit tariffs. For other trading partners, Trump has set an Aug. 1 deadline for the resumption of tariffs. 'We have a good relationship with China,' Trump said Monday. 'China's tough.' The president last month said Xi was 'extremely hard to make a deal' with and the two leaders have had a fraught relationship in recent years.

China Watchers React As Trump Caves to Beijing on Key Issue
China Watchers React As Trump Caves to Beijing on Key Issue

Newsweek

time7 minutes ago

  • Newsweek

China Watchers React As Trump Caves to Beijing on Key Issue

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Trump administration's alleged decision to block Taiwanese President Lai Ching-te from making a stopover in New York has drawn criticism from policy experts, with some saying it marks a clear concession to Beijing during sensitive U.S.-China trade talks. Citing three sources familiar with the matter, British newspaper Financial Times wrote Monday that Trump administration officials refused Lai transit through New York en route to diplomatic allies in Central America. Newsweek reached out to the White House and the Chinese Embassy in the U.S. outside of office hours via email requests for comment. Why It Matters Beijing, which claims Taiwan as part of its territory, has repeatedly objected to any U.S. engagement with Taiwanese officials. The United States maintains unofficial ties with Taiwan under the Taiwan Relations Act, but has traditionally tried to balance its support for the island with efforts to avoid provoking Beijing. Taiwanese presidents, including Lai and his predecessor Tsai Ing-wen, have in the past made stops in the U.S., during which they met with pro-Taiwan officials, en route to diplomatic visits in the Americas. Trump's alleged decision may signal a willingness to forgo precedent in favor of smoothing talks with Beijing. What To Know Analysts warn that treating Taiwan as a flexible bargaining chip, rather than a fixed American commitment, risks undermining the island's security and international standing. Ely Ratner, a former Pentagon official under the Biden administration, wrote on X: "Extraordinary mismanagement of the Taiwan relationship." Aaron Astor, a professor of history at Maryville College, also voiced concern on the platform: "I was told the Trump Administration was going to confront the People's Republic of China and not … deny Taiwan's president the right to pass through the US." "Please tell me this is fake news or a simple screwup and is not Trump yielding to Xi for a trade deal," Astor added. File photo: Lai Ching-te delivers his inaugural speech at the Presidential Office Building in Taipei on May 20, 2024. File photo: Lai Ching-te delivers his inaugural speech at the Presidential Office Building in Taipei on May 20, 2024. AFP via Getty Images What People Are Saying Nancy Pelosi, member of Congress (CA-11) and former House speaker, called the move a "victory for Xi." "Donald Trump's decision to deny permission for President Lai to visit New York sends a dangerous signal: that the United States can be bullied by Beijing into silence on Taiwan," Pelosi wrote on X. Bonnie Glaser, managing director of the U.S. Indo-Pacific Program at the German Marshall Fund, was quoted in the Financial Times report: "By signaling that aspects of the U.S. relationship with Taiwan are negotiable, Trump will weaken deterrence and embolden Xi to press for additional concessions regarding Taiwan." Ryan Fedasiuk, adjunct professor at Georgetown University's Security Studies Program, wrote on X: "Many long-standing China hands are too polite to say it, so I will: In a normal world it would be inconceivable that the United States would accede to Beijing's demand to pull down a routine transit by Taiwan's President." Fedasiuk added that the decision highlights serious problems in U.S. policy toward China, saying that it came on the heels of the administration's move to relax export controls on advanced chips to the U.S. ally. What Happens Next Hsiao Kuang-wei, Taiwan's foreign ministry spokesperson, told Newsweek that there was "no such thing as a postponement, cancellation, or the U.S. side refusing a transit stop." "As in the past, once the itinerary for a presidential trip is finalized, the Presidential Office will announce and explain it to the public in due course," the official said. Asked during Tuesday's Chinese Foreign Ministry press conference whether Beijing had contacted the U.S. about Lai's prospective transit, spokesperson Guo Jiakun said that China firmly opposes any form of official contact between the U.S. and Taiwan.

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