Nvidia, AMD Could See Billions in Revenue from Soaring China AI Demand in 2026

This article first appeared on GuruFocus.

Shares of Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) inched up about 0.5% on Tuesday as analysts highlighted potential revenue growth from China.

Raymond James said both companies could see moderate upside if recent U.S. export approvals lead to significant orders.

Analyst Simon Leopold wrote in a note to clients that AMD might generate $500 million to $800 million in additional revenue in 2026, translating to $0.10 to $0.20 in non-GAAP EPS.

Nvidia could see $7 billion to $12.5 billion in extra revenue, or $0.15 to $0.30 in non-GAAP EPS.

Earlier this month, President Trump approved the sale of Nvidia’s H200 GPUs to China. Reports also suggest Alibaba (BABA) could buy 40,000 to 50,000 of AMD’s MI308 AI accelerators. Leopold estimated the potential Alibaba deal could generate around $675 million for AMD over several quarters.

Analysts cautioned that uncertainties remain, including regulatory approvals and geopolitical risks, which could affect the final outcome.