Trump’s trade war with China to cost AMD $1.5B in lost rev
Summary
AMD has revealed that the recent US export controls on AI chips will result in a staggering $1.5 billion hit to its revenues for 2025. This announcement was made during a call with investors, where AMD executives discussed the impact of the trade restrictions targeting GPU sales to China. Despite this setback, CEO Lisa Su remains optimistic about increasing Instinct GPU revenues amid strong demand.
Key Points
- AMD expects a $1.5 billion revenue loss due to US export controls on AI chip sales to China.
- CEO Lisa Su anticipates strong double-digit growth in Instinct GPU revenues despite challenges.
- Revenue from MI308 GPU sales to China will be heavily restricted by new licensing agreements.
- AMD forecasts a Q2 revenue of $7.4 billion, significantly impacted by these controls.
- A multi-billion dollar contract with Oracle could help mitigate some of the losses for AMD.
- AMD is gearing up to launch next-gen AI accelerators expected to compete with Nvidia’s offerings.
Why should I read this?
This article dives into the repercussions of US-China trade tensions on AMD’s financials, which is significant if you’re following the chip industry or investing in tech stocks. It highlights not just the immediate financial impact but also AMD’s strategic moves in the competitive AI market. Get ahead of the curve by knowing how these developments could shake up the landscape for Nvidia and others!