Advanced Micro Devices Inc. (NASDAQ:AMD) CEO Lisa Su's meeting with Chinese Vice-Premier He Lifeng has raised expectations that the U.S. may ease some AI chip export restrictions on China.



<h2>China Meeting and Policy Signals</h2>



According to the South China Morning Post, analysts said Washington appears to be shifting away from broad tech decoupling and could allow sales of upper-mid-tier AI chips while still restricting the most advanced semiconductors.



Speaking at AMD's AI developer event in Shanghai, Su called China &#34;the world's most dynamic AI ecosystem&#34; and reaffirmed the company's commitment to the market, which accounts for about one-quarter of AMD's annual revenue.



The optimism follows reports that the Trump administration approved NVIDIA Corp. (NASDAQ:NVDA) H200 AI chip sales to select Chinese firms, signaling a potential policy shift.



However, Chinese companies are also accelerating adoption of domestic alternatives from Huawei Technologies and other local chipmakers.



<h2>Citi Raises Price Forecast</h2>



Separately, Citi raised its price forecast on Advanced Micro Devices to $460 from $358 while maintaining a neutral rating, citing a projected &#34;CPU renaissance&#34; driven by AI workloads.



Analyst Atif Malik said the server CPU market could grow to $132 billion by 2030 as agentic AI increases demand for CPU processing power, the Street reported on Monday.



Citi said AMD could benefit from its EPYC server chip momentum and priority manufacturing access at Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM).



The firm also said industry discussions suggest AMD may have secured Anthropic as a customer for its next-generation MI450 AI accelerators, with a potential announcement expected at AMD's July Advancing AI event.



<h2>AMD Earnings Outlook and Key Estimates</h2>



Looking further out, the next major catalyst for the stock arrives with the August 4, 2026 (estimated) earnings report.



<ul>
<li>EPS Estimate: $1.55 (Up from 48 cents YoY)</li>



<li>Revenue Estimate: $11.28 Billion (Up from $7.68 Billion YoY)</li>



<li>Valuation: P/E of 140.3x (Indicates premium valuation relative to peers)</li>
</ul>



<h2>Analyst Consensus and Recent Moves</h2>



The stock carries a Buy rating with an average price forecast of $446.76. Recent analyst moves include:



<ul>
<li>Evercore ISI Group: Outperform (Raises forecast to $579.00) (May 19)</li>



<li>Citigroup: Neutral (Raises forecast to $460.00) (May 18)</li>



<li>Daiwa Capital: Downgraded to Outperform (Raises forecast to $500.00) (May 13)</li>
</ul>



<h2>AMD Price Action</h2>



AMD Price Action: Advanced Micro Devices shares were down 1.78% at $413.50 during premarket trading on Tuesday, according to Benzinga Pro data.



Image via Shutterstock

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AMD CEO Lisa Su's meeting with Chinese Vice-Premier He Lifeng raises hopes for eased U.S. AI chip export restrictions to China. Analysts suggest a shift in U.S. policy, allowing sales of upper-mid-tier AI chips. Citi raised AMD's price forecast to $460, citing a projected growth in the CPU market driven by AI. AMD's upcoming earnings report is expected to show significant revenue growth. The stock is currently rated as a Buy, with a slight decline in premarket trading.

- Advanced Micro Devices Inc. CEO Lisa Su's meeting with Chinese Vice-Premier He Lifeng has generated speculation regarding a potential easing of U.S. AI chip export restrictions to China.  
- Analysts noted a possible shift in U.S. policy, allowing sales of mid-tier AI chips while restricting advanced semiconductors, alongside increased competition from domestic Chinese chipmakers.  
- Citi raised its forecast for AMD's stock to $460, highlighting strong growth potential in the server CPU market and anticipated earnings that reflect robust demand driven by AI workloads.

What's Going On With AMD Stock Tuesday?