AMD expects $1.5 billion hit to 2025 revenue due to Chinese chip sales restrictions
Although AMD just reported a beat on all fronts, the company is forecasting a major revenue hit for the upcoming fiscal year.
AMD’s earnings report brought the kind of numbers that shareholders wanted to see, beating revenue and EPS expectations and sending the stock up in after-hours trading. However, as the company looks forward, AMD is expecting some significant economic challenges. Specifically, the company is expecting a $700 million revenue hit for the current quarter and a $1.5 billion for the full fiscal year.
AMD CEO Lisa Su was speaking during the company's latest earnings call when she gave the prediction, as reported by CNBC. “While we face some headwinds from the dynamic macro and regulatory environments, including the recently announced export controls for Instinct MI308X shipments to China, we believe they are more than offset by the powerful tailwinds from our leadership product portfolio,” she said.
The announcement clearly caused a concern in the minds of shareholders, as AMD stock took a dip in after-hours trading after seeing an initial bump after the report was published. We’ve seen Trump’s tariffs have a wide-reaching effect across the tech industry, and it’s clear that AMD is bracing for a challenging economic period over the next several months.
More details on AMD’s latest quarter can be found in the company’s earnings report. Make Shacknews your home for finance news out of the tech business.
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