AMD Revenue Hit

AMD Revenue Hit

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AMD has warned that new US export restrictions on chip sales to China will result in a $1.5 billion revenue loss this year. This forecast stems from the April restrictions targeting AMD's MI308 chips, which are crucial for data center operations. The company anticipates a $700 million decline in sales from its data center segment, which has been a significant growth area for AMD, reflecting the broader impact of geopolitical tensions on tech companies reliant on international markets.

Despite the revenue hit, AMD's CEO Lisa Su remains optimistic about the overall demand for AI infrastructure, projecting that upcoming chip releases will bolster sales in the latter half of the year. The company reported a 36% increase in first-quarter sales, driven by strong demand for data center processors and personal computers. However, investor concerns about trade restrictions and competition from Nvidia in the AI chip market could cloud AMD's growth outlook.

Why it matters

The revenue forecast highlights the significant impact of geopolitical tensions on AMD's financial performance and market position.

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