Advanced Micro Devices (AMD) envisages a loss of $ 1.5 billion in 2025. The reason for this was the new restrictions on the export of chips that require the company to receive licenses for advanced processors for artificial intelligence (AI) to China. About it reports Reuters.
Nevertheless, the company released an income estimate for the second quarter that exceeded the Wall Street’s expectations. Analysts associate this with the fact that customers have already purchased chipset before the introduction of tasks and restrictions. The company’s shares showed volatility in the market, but finally increased by about 1% after the first growth.
According to Washington, restrictions on artificial intelligence exports are introduced by US administrations (both the Bay and under Trump) to slow down the development of advanced models and AI applications in PRC, which may have consequences for national security.
Amd Lisa Su’s General Manager said that the main impact of the restrictions will be in the second and third quarter of this year. However, for the AI for the AI in the data centers segment, it is waiting for the income to grow on the “high double -sub -number” this year. He described the situation as the “approaching wind ,, but expressed his trust that the company could cope with this difficulty.
China provides about one quarter of the general AMD revenue. According to estimates, export control can reduce the company’s income estimation almost by almost 5%by 2025.
Amd Finance Director Jean Hu confirmed the results of the 1.5 billion dollar income loss in 2025 in April after the conference meeting. Analysts say that large customers probably accelerated their purchases to avoid difficulties in obtaining export licenses after the latest rules for China. However, after the formation of adequate reserves in the second quarter, they warn that the third quarter may slow down sales.
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Source: Gazeta
Jackson Ruhl is a tech and sci-fi expert, who writes for “Social Bites”. He brings his readers the latest news and developments from the world of technology and science fiction.