AMD had a strong revenue stream from China until U.S. export controls hit in April 2025. Now, AMD is set to sell advanced AI chips to Chinese customers in 2026, potentially exceeding growth expectations and boosting stock prices. Analysts predict a 20% increase in earnings for 2025, with even higher potential for 2026.

Despite revenue growth in 2025, AMD faced challenges due to export controls, resulting in an $800 million inventory charge. With China contributing a quarter of AMD’s 2024 revenue, the company faced significant losses. Analysts project a 31% revenue jump in 2026 to $44.6 billion, with potential for even higher sales if China revenue is regained.

Nvidia’s recent permission to sell advanced chips to China suggests AMD may also regain lost Chinese revenue in 2026. With AMD’s market cap potentially jumping to $561 billion with $51 billion in revenue, there is room for significant growth. This makes AMD stock a potential buy following recent pullbacks.

President Trump’s rule change allowing the sale of advanced chips to Chinese customers could benefit AMD, potentially leading to higher-than-expected sales in 2026. Analysts have not yet adjusted revenue expectations, leaving room for further gains. This makes AMD a promising investment option for the new year.

Read more at Yahoo Finance: AMD Stock Will Jump 60% in 2026, Thanks to President Donald Trump