China prioritizes AMD as a strategic partner despite Nvidia securing approvals for H200 AI chip sales to local firms.
Nvidia received approval to sell H200 AI chips to 10 Chinese companies, including Alibaba and ByteDance, but Beijing imposed tighter scrutiny on its GPUs, limiting market access. AMD, holding a minor share of China’s AI market, emerged as a preferred partner after its CEO met with China’s vice premier to expand cooperation.
Nvidia dominates 80-90% of the global AI GPU market, making it a geopolitical target for Beijing. AMD’s smaller footprint reduces perceived threats, aligning with China’s strategic interests. Trump’s trade efforts initially appeared to benefit Nvidia, but Beijing’s stance suggests AMD may gain long-term advantages.
The shift highlights semiconductors as geopolitical bargaining chips, with Washington’s export controls clashing with efforts to reopen markets worth tens of billions of dollars. Investors now weigh which company will benefit once political tensions ease.