Shares in Advanced Micro Devices (AMD) stock are beating out Nvidia (NVDA) during today’s trading session, rising 5% in that period. AMD initially grabbed attention this week after reports revealed the chipmaker agreed to give the U.S. government 15% of its AI GPU sales in China in exchange for export licenses. While some experts suggested this could harm AMD stock, numerous analysts remain bullish that the stock still has gains in it that could rival AI king NVDA.

Citi analyst Christopher Danely is one of these bullish analysts, saying the 15% payment is largely immaterial to AMD’s bottom-line profits. Danely points out that the agreement mainly impacts low-margin products like the MI308X, far less profitable than AMD’s corporate average margin of nearly 54%. Instead, the real growth drivers remain AMD’s mainstream AI GPUs, the MI355 and MI400, which are fueling AI sales forecasts of $6.2 billion in 2025 (up 23%) and $9.9 billion in 2026 (up 58%).

Furthermore, AMD’s current AI chips have made little impact on the dominance of Nvidia’s Blackwell hardware. However, the MI400 series—which includes the MI450—will be AMD’s first rack-scale, 72-processor AI server offering. That could make it a more serious rival, allowing its stock to boom compared to NVDA shares.

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Christopher Danely maintains a neutral rating on AMD with a $180 price target for the stock. AMD is trading near the top of its 52-week range and above its 200-day simple moving average. CNN analysts are similarly bullish on AMD, forecasting a 12-month climb to $230.00. Out of 56 analysts surveyed by the platform, 73% suggest buying AMD stock, while 27% suggest holding, and none suggest selling.

AMD’s latest earnings report revealed impressive top-line performance, but it was undermined by profitability challenges. Revenue surged to a record $7.7 billion – driven by strong EPYC and Ryzen processor sales across cloud and enterprise markets. However, earnings per share declined to $0.48 from $0.69 last year. This happened largely due to an $800 million inventory write-down, and it was related to export controls affecting Chinese AI chip sales. This charge reduced gross margin to 43% from 53% a year ago, and investors focused on this.