NVIDIA, AMD may welcome new opportunities in the Chinese market. Institutions predict that AMD's revenue may increase by up to $8 billion, while NVIDIA's may increase by $12.5 billion.

Investment firm Raymond James believes that NVIDIA Corporation (NVDA.US) and AMD (AMD.US) may have moderate growth potential in the Chinese market. Analyst Simon Leopold wrote in a client report, "There are currently several uncertainties that make it difficult to assess the final outcome accurately, but in an opportunistic scenario, we expect AMD to potentially generate an additional revenue of around $500 million to $800 million, with a non-GAAP earnings per share increase of around $0.10 to $0.20; NVIDIA Corporation may generate around $7 billion to $12.5 billion in additional revenue, corresponding to a non-GAAP earnings per share increase of around $0.15 to $0.30 in 2026." Leopold reiterated a "buy" rating for NVIDIA Corporation and an "outperform" rating for AMD. If it successfully obtains government approval, NVIDIA Corporation plans to start delivering its H200 series GPU to the Chinese market in mid-February next year. According to three sources, the GPUs are expected to be shipped in the first batch before the Chinese New Year. Two of the sources indicated that the initial orders will mainly rely on existing inventory, with an estimated shipment size of 5,000-10,000 modules, corresponding to around 40,000-80,000 H200 chips. The sources pointed out that after obtaining government approval, NVIDIA Corporation will further expand its production capacity, with production capacity orders expected to start in the second quarter of 2026. On Monday, there were reports that Alibaba Group Holding Limited Sponsored ADR (BABA.US) is considering purchasing 40,000 to 50,000 AMD MI308 AI accelerators. Leopold noted that the potential order from Alibaba Group Holding Limited Sponsored ADR could bring in $675 million in sales, though this revenue will be realized over multiple quarters. It is worth noting that despite the recent tough times for AI concept stocks, several Wall Street analysts have stated that they will continue to hold chip stocks they have confidence in, looking towards 2026. Bank of America predicts that NVIDIA Corporation will continue its strong growth momentum next year with new products continuously coming out. Institutions like Jefferies Financial Group Inc. also specifically recommended companies like NVIDIA Corporation, Broadcom Inc., and others.