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.

China Meeting and Policy Signals

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 "the world's most dynamic AI ecosystem" 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.

Citi Raises Price Forecast

Separately, Citi raised its price forecast on Advanced Micro Devices to $460 from $358 while maintaining a neutral rating, citing a projected "CPU renaissance" 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.