Contrasting Strategies of AMD and Nvidia in China
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Source: Newsfilter
- Market Share Shift: According to IDC, AMD holds only 4% of China's AI chip market, while Nvidia's share has plummeted from 95% to nearly zero over the past year, highlighting the significant impact of U.S. export controls on Nvidia and AMD's relative disadvantage in the market.
- Strategic Cooperation Opportunities: AMD CEO Lisa Su's meeting with Chinese Vice Premier He Lifeng during her visit indicates AMD's intent to deepen cooperation in the Chinese market, which could potentially open up more business opportunities despite fierce competition and regulatory challenges.
- Ecosystem Challenges: Although AMD promoted its open-source software stack ROCm at its Shanghai developer event, its software ecosystem remains less mature compared to Nvidia's, which may limit AMD's further penetration into the Chinese market, particularly in the AI sector.
- Revenue Dependency: Su noted that China accounts for 20% of AMD's total revenue, underscoring the importance of the Chinese market across PCs, gaming, and data center segments, and despite challenges from domestic competitors, AMD plans to continue close collaboration with its Chinese customers.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Budget Overruns: Corporate AI budgets are being exhausted within one to two months, far exceeding expectations, forcing CFOs to make tough choices between technology and human resources, highlighting a misjudgment of AI costs by enterprises.
- Resource Allocation Shift: Leadership teams are reassessing the relationship between AI spending and employee numbers, with many companies potentially sacrificing future headcount growth in pursuit of AI efficiency, impacting overall operational strategies.
- Tech vs. Cost Comparison: For the first time, the cost of AI technology is on par with human labor, compelling companies to make difficult choices between tech investments and workforce resources, a situation unprecedented in history that could lead to fundamental changes in business operations.
- Inefficiency Challenges: Despite the power of AI technology, its inefficiency is evident, with 95% of enterprise AI usage still relying on the most expensive frontier models, necessitating optimization in model selection to reduce costs and enhance overall profitability.
See More
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- Poor Financial Performance: According to the S-1 report, SpaceX's revenue grew by 33% to $18.7 billion in 2025, but due to a surge in R&D spending, it reported a GAAP operating loss of $2.6 billion, highlighting challenges in profitability.
- Market Potential Assessment: Despite its poor current performance, SpaceX claims a total addressable market of $28.5 trillion, primarily from AI enterprise applications, indicating optimism for future growth, yet actual results fail to support this valuation.
- Increased Competitive Pressure: The merger with xAI has not yielded the expected growth, with xAI's revenue at only $3.2 billion in 2025 and growth slowing to 12.5%, indicating that SpaceX faces intense competition in the AI sector, which could affect its overall valuation.
See More
