AMD
🇨🇳 AMD announced that U.S. restrictions on sales to China will cost the company $1.5 billion in revenue this year, primarily impacting its MI308 chips.
📈 Despite this setback, CEO Lisa Su remains optimistic about overall demand for AI infrastructure and expects new chip launches to boost sales in the second half of the year.
⚠️ The company faces investor concerns over trade restrictions, tariffs, and intense competition with Nvidia in the burgeoning AI market.
@bernardodegarcia:
“AMD, rising 1.75% after having risen much more, Nvidia’s closest rival in AI processors, announced that, as we knew, U.S. restrictions on sales to China will cost them $1.5 billion in revenue this year—a warning that overshadowed a fairly optimistic outlook. This forecast stems from an export restriction imposed in April targeting the MI308 chips. According to the company’s report during yesterday’s earnings presentation, data center revenues will decrease in the current period, affected by a $700 million reduction in sales of this product, predicted AMD CEO Lisa Su. She remains optimistic, however, about the overall demand for AI infrastructure. We also reiterate her projection that the upcoming launch of new chips will help drive sales in the second half of the year. However, it faces investor concerns about trade restrictions, tariffs, as well as the challenges of competing with its larger rival, Nvidia, in the AI market.”
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