AMD’s China Surge: Your Second Chance at the AI Chip Boom?

Advanced Micro Devices ( $Advanced Micro Devices(AMD)$ ) is stealing the spotlight, soaring 6% to $185.50 on July 15, 2025, after the U.S. approved resumed sales of its MI308 AI chips to China, a move that could unlock $2-$3 billion in revenue. Meanwhile, Broadcom ( $Broadcom(AVGO)$ ) hit a new high with its Tomahawk Ultra chip, positioning itself as a formidable Nvidia rival, while the chip sector rides a wave of AI-driven demand. For investors who missed Nvidia’s meteoric rise to a $4 trillion market cap, AMD, TSMC, and BYD offer compelling opportunities in AI, auto, and China’s chip market. But which stocks have the most upside, and which sectors should you bet on? This report dives into AMD’s rally, Broadcom’s momentum, and top picks across AI, auto, and China chips, with strategic investment approaches to seize this opportunity while managing risks.

AMD’s China Catalyst: A Game-Changer

AMD’s announcement to restart MI308 chip sales to China, following U.S. Commerce Department approval, has ignited investor enthusiasm. The MI308, part of AMD’s MI300 series, is a high-performance AI accelerator designed to compete with Nvidia’s H200 and Blackwell chips. China, representing ~20% of AMD’s revenue before 2025 export restrictions, is a critical market, and resuming sales could add $2-$3 billion annually, per analyst estimates, offsetting an $800 million hit from earlier bans.

Market Impact: The 6% stock surge to $185.50 reflects optimism, with X users calling it “AMD’s China rebound” and predicting a run to $200-$210. The move follows Nvidia’s approval to resume H20 sales, signaling a U.S. policy shift amid improving U.S.-China relations.
AI Chip Strength: AMD’s MI308 offers up to 32% higher performance in certain AI workloads compared to Nvidia’s H100, with double the memory and greater bandwidth. Its adoption in data centers and supercomputers, like the El Capitan exascale system, bolsters its AI credentials.
Financial Boost: Q1 2025 data center revenue grew 30% to $2.3 billion, with analysts expecting Q2 revenue (August 5, 2025) to hit $6.7 billion, up 15% year-over-year, driven by MI308 and Instinct accelerators.

Social media sentiment on X is bullish, with posts like “AMD’s MI308 is Nvidia’s nightmare—$200 by Q4!” but some warn of “overbought risks” given its 25x forward P/E.

Broadcom’s Tomahawk Ultra: A Nvidia Challenger

Broadcom’s stock hit a new high of ~$1,300 after unveiling its Tomahawk Ultra chip, designed for AI data center networking with 800 Gbps performance, directly challenging Nvidia’s InfiniBand solutions. With a $600 billion market cap and 30% YTD gain, Broadcom’s diversified portfolio—spanning AI, wireless, and networking—makes it a strong contender:

Market Impact: The Tomahawk Ultra’s launch drove a 5% stock surge, with X users calling it “Broadcom’s AI power play” and predicting $1,400-$1,500 targets.
Growth Drivers: Q1 2025 revenue grew 43% to $12.5 billion, with AI-related sales up 280% to $3.1 billion. Partnerships with Apple and Google bolster its position.
Risks: A 35x forward P/E and tariff risks (30% on EU/Mexico, 35% on Canada) could cap gains, with a potential pullback to $1,200-$1,250.

Top Picks in AI, Auto, and China Chips

For investors who missed Nvidia’s rally, here are top stocks across AI, auto, and China’s chip sector:

AI Sector

TSMC (TSM): The world’s largest chip foundry reported a Q2 2025 earnings beat with $20.8 billion in revenue (up 39% YoY) and raised its full-year guidance to $114 billion. Trading at $185.50 with a 25x P/E, it’s a must-own for AI chip exposure, targeting $200-$210.
AMD (AMD): Up 55% YTD to $185.50, AMD’s MI308 and Instinct accelerators are gaining traction, with China sales adding $2-$3 billion. Targets $200-$210, with support at $170-$180.
Broadcom (AVGO): Up 30% YTD to $1,300, its Tomahawk Ultra chip and AI revenue growth make it a diversified play, targeting $1,400-$1,500.

Auto Sector (China Focus)

BYD ( $BYD Co., Ltd.(BYDDY)$ ): China’s top EV maker, up 33% YTD to $60, dominates with models like the Seagull ($10,000) and Han EV ($35,000). Its AI integration for autonomous driving targets $80-$90.
NIO (NIO): A premium Chinese EV maker, up 25% YTD to $5.50, with expansion in Europe and AI-driven features. Targets $7-$8, with support at $5.

Chips in China

SMIC ( $Santana Minerals Ltd(SMI.AU)$ ): China’s largest chipmaker, up 20% YTD to $15, produces 7nm chips despite U.S. sanctions. Targets $20-$25, but geopolitical risks cap upside.
Hua Hong Semiconductor ( $Hua Hong Semiconductor Ltd(HHUSF)$ ): Up 15% YTD to $2.50, focuses on mature nodes with less sanction exposure. Targets $3.50-$4.

My Top Picks

I’m most bullish on TSMC for its AI foundry dominance, AMD for its direct Nvidia competition and China sales, and BYD for its EV leadership and AI integration. TSMC offers stability, AMD provides speculative upside, and BYD taps China’s EV boom.

Can AMD Keep Rising?

AMD’s 55% YTD gain to $185.50, driven by MI308 sales to China, positions it as a strong alternative to Nvidia:

Technical Analysis:Resistance at $190-$200 is key; a breakout could target $210-$220. Support at $170-$180 aligns with the 50-day moving average, with RSI at 65 indicating room for upside.
Analyst Targets: Wedbush’s $200 target and Mizuho’s $160 suggest 8-13% upside, with Morgan Stanley’s $195 reflecting AI optimism.
Growth Drivers: Q2 revenue expected at $6.7 billion (up 15% YoY), with MI308 and Instinct accelerators driving 30% data center growth.
Risks: Nvidia’s 90% AI chip market share, tariff disruptions (30% on EU/Mexico, 35% on Canada), and a 25x P/E pose challenges, with a potential pullback to $150-$160 if earnings disappoint.

AMD could hit $200-$210 by year-end if Q2 earnings (August 5, 2025) beat expectations and China sales scale, but volatility demands caution.

Trading and Investment Strategies

Short-Term Plays

Buy AMD on Dip: Enter at $170-$180, target $200-$210, stop at $165. An 8-13% gain if Q2 earnings beat or China sales surge.
Buy TSMC on Dip: Grab at $170-$180, target $200-$210, stop at $165. An 8-13% gain on AI demand.
Buy BYD on Dip: Enter at $55-$60, target $80-$90, stop at $50. A 25-50% gain if EV sales rebound.
Options Straddle: Buy $185.50 calls/puts on AMD or $1,300 calls/puts on AVGO for earnings volatility.

Long-Term Investments

Hold AMD: Buy at $170-$180, target $220-$250 over 12 months, for 18-39% upside with AI and China growth.
Hold TSMC: Buy at $170-$180, target $220-$250, for 18-39% upside with foundry dominance.
Hold BYD: Buy at $55-$60, target $100-$120, for 50-75% upside with EV and AI growth.
Diversify with Semiconductor ETF (SOXX): Buy at $220, target $260NECESSARY260, stop at $200, for broad sector exposure.

Hedge Strategies

VIXY ETF: Buy at $15, target $18, stop at $13, to hedge against tariff or earnings volatility.
SPY ETF Puts: Use puts at $614 to protect against a 5-10% S&P 500 pullback.
Gold ETF (GLD): Buy at $200, target $220, stop at $190, as a safe-haven hedge.

My Trading Plan

I’m cautiously bullish on AMD, TSMC, and BYD, seeing 8-13% upside for AMD and TSMC, and 25-50% for BYD by year-end 2025. I’ll buy AMD at $170-$180, targeting $200-$210, with a $165 stop, TSMC at $170-$180, targeting $200-$210, with a $165 stop, and BYD at $55-$60, targeting $80-$90, with a $50 stop. I’m hedging with VIXY at $15, targeting $18, and keeping 20% cash to seize dips if tariffs (30% on EU/Mexico, 35% on Canada) or geopolitical tensions (Israel-Iran conflict) escalate. I’ll monitor Q2 earnings, tariff negotiations, and AI/EV trends for cues.

Key Metrics

The Bigger Picture

AMD’s 6% surge to $185.50, driven by resumed MI308 sales to China, positions it as a top pick for investors who missed Nvidia’s $4 trillion rally. TSMC’s Q2 earnings beat and $114 billion guidance make it a stable AI play, while BYD’s EV dominance and AI integration offer high-growth potential in China’s auto market. Broadcom’s Tomahawk Ultra chip adds diversified AI exposure. However, tariff risks, competition from Nvidia and Intel, and geopolitical tensions (Israel-Iran conflict, oil at $75/barrel) could trigger a 5-10% S&P 500 pullback to 5,800-6,000. Investors should buy on dips for long-term upside, use options for volatility plays, and hedge with VIXY or GLD to manage risks. The AI and EV chip boom is alive—pick your winners and trade smart.

Which stock are you most bullish on—AMD, TSMC, or BYD? Are you buying or hedging? Share your strategy below! 🎁

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AMD on the Move: Still a Buy for Those Who Missed Nvidia?

AMD stock jumps 6% as it will restart M1308 sales to China after US review. Broadcom stock records new high as it takes on Nvidia with its new Tomahawk Ultra chip; Chip stocks is enjoying a good rally, leading by Nvidia boom. If you missed Nvidia, which stocks would you pick? Among AI, auto, and chips in China, which companies are you most bullish on?

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