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AMD Shares Rise Over 6%: ZTE, Kingsoft Cloud and Other Chinese Companies Authorized to Buy Its AI Chips, BofA Lifts Price Target to $620

TradingKey

AuthorAndy Chen

Jul 14, 2026 3:34 PM

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On July 14, Eastern Time, AMD shares rose 6.05% to $566.73 following reports that Chinese firms received US export licenses for AI chips. Bank of America raised its price target to $620, maintaining a "Buy" rating based on strong server processor demand. Key catalysts include the MI455X 'Helios' server launch and expanding EPYC market share. While the AI CPU portfolio offers significant tailwinds, headwinds include projected declines in smartphone sales by 2026. Longer-term, analysts highlight a widening supply-demand gap in the AGI CPU market, which may emerge as a critical valuation variable for fiscal 2027-2028.

AI-generated summary

TradingKey - On July 14, Eastern Time, AMD ( AMD) resumed its rally, rising 6.05% to $566.73 as of press time.

According to people familiar with the matter, a subsidiary of Chinese telecom equipment maker ZTE, along with Kingsoft Cloud, have received approval to purchase Nvidia ( NVDA) and AMD's AI chips, further expanding the list of Chinese companies known to have obtained US licenses.

Meanwhile, Bank of America raised its price target on AMD from $550 to $620 and reiterated its "Buy" rating in its latest research report, citing "exceptionally strong" demand for server processors.

The bank's analyst Vivek Arya stated that AMD is expected to deliver beat-and-raise results, benefiting from the continuous growth of EPYC processor market share, strong cloud demand, and a stable supply outlook.

The firm noted that the company's third-quarter guidance may factor in shipments of the first batch of MI455X 'Helios' rack-mount servers, with shipment volumes ramping up significantly in the fourth quarter (with quarterly revenue expected to exceed $6 billion to $7 billion by the end of the fourth quarter). Given that AMD has the broadest AI CPU portfolio, its sixth-generation EPYC Venice processor will also be launched alongside Helios in the third quarter, and management may further emphasize that agentic AI will be a tailwind for the CPU business. Management estimated the server CPU market size at $120 billion in May, and they may raise this figure again.

The firm added that near-term licensing revenue is primarily driven by handset shipments, while smartphone sales may decline by more than 10-15% year-on-year in 2026, and a material recovery is unlikely in 2027. The dividend from architecture upgrades on the mobile side (iterating from the v8 architecture to v9 and CSS architectures) has largely been realized; major server CPU orders, such as Google's Axion and Microsoft's Cobalt, may not contribute to financial performance until the second half of 2026 to 2027. The medium- to long-term supply-demand gap for artificial general intelligence (AGI) CPUs could become a key variable: company management expects market demand to reach $2 billion in fiscal 2027-2028, but supply is only $1 billion, and overall AI CPU demand continues to trend positive.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.

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Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

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