AMD Projects Revenue Hit from US-China Chip Export Curbs

AMD anticipates a $1.5 billion revenue impact in 2025 due to new US export controls on AI chips to China, but expects strong growth in AI chip revenue.

Advanced Micro Devices, Inc. (AMD) has forecasted a $1.5 billion revenue impact for 2025 due to new U.S. export controls on AI chips to China. This announcement follows the implementation of licensing requirements for shipping advanced AI processors to China, which are part of broader U.S. efforts to limit China's capabilities in developing advanced AI models. Despite these challenges, AMD expects its AI chip revenue to grow by strong double digits this year.

The company has projected second-quarter revenue of $7.4 billion, surpassing Wall Street estimates. This optimistic forecast is attributed to increased chip purchases by customers ahead of the tariffs. AMD's CEO, Lisa Su, noted that while the export controls present a headwind, the company remains confident in its ability to manage the impact due to its robust product portfolio.

AMD's financial outlook contrasts with that of its competitor, Nvidia, which faces a $5.5 billion charge due to similar export restrictions. China accounts for approximately a quarter of AMD's total revenue, and the new controls are expected to reduce Wall Street's revenue forecast for the company by nearly 5%.

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