Alibaba is reportedly weighing a large order of AMD MI308 AI accelerators for China, potentially 40,000 to 50,000 units, which would tie licensing and export-control considerations to a major multi-billion-dollar opportunity.

The MI308 accelerators are viewed as a competitive alternative to Nvidia’s data center GPUs in the AI compute market.

If confirmed, the deal would mark a significant win for AMD in a market traditionally led by Nvidia, underscoring a sizable growth runway as AI workloads expand.

Valuation signals high investor expectations with a lofty price/earnings multiple and a strong price-to-sales ratio, while analysts’ average target sits around the low $270s with a largely Buy sentiment.

AMD’s stock edged higher in early trading, trading near $214 and sitting well above key support while remaining below a nearby resistance level.

Fundamentals remain solid, with healthy liquidity and profitability, including mid-single-digit revenue growth, solid margins, a comfortable current ratio, and minimal debt load.

Risks include heightened volatility, sector disruption from rapid tech change, and capital-allocation questions given ROIC trajection below the WACC.

Market sentiment shows a neutral RSI, strong institutional ownership, and relatively small insider ownership, indicating cautious but confident positioning.

Analysts have turned bullish with higher price targets, while the ultimate terms and timetable of any Alibaba contract remain uncertain.

The broader market backdrop includes a semiconductor rally and thin trading volumes that can exaggerate headlines in the space.

AMD’s recent price recovery has breached several technical levels, making the coming weeks pivotal for whether growth translates into tangible demand and stock gains.

Trading around $214 with a 52-week range spanning from the mid-$70s to the high $260s, in a holiday-shortened week driven by China AI chatter and broader sentiment.