San Francisco – Advanced Micro Devices (AMD), the second-largest manufacturer of artificial intelligence (AI) processors, warned that a return to the critical Chinese market remains an ongoing job, obscuring the popular bright forecasts of the AI business.
As part of its quarterly revenue report on August 5, AMD rejected forecasts for China's sales of Instinct MI308, an AI processor designed for the country.
US President Donald Trump's administration eliminated such chip cargo to China in April, but is hoping that it will overturn the course in July and that AMD and rival Nvidia will be able to resume sales soon.
China is the largest market for semiconductors, and it threatens to erase billions of dollars in total revenue from both companies due to restrictions.
“We have not included MI308 revenue in our third quarter guidance as our licenses are still under review,” CEO Lisa Su said in a conference call with analysts.
Three months ago, AMD said it was spending US$800 million (SG$1.03 billion) on writedowns related to export restrictions, warning that it would cost US$1.5 billion in revenue on the curb. 2025. Wall Street was waiting for a revised outlook in light of changing policies.
Su was optimistic about the overall AI computing market.
“Looking ahead, we see a clear path to expanding our AI business to tens of billions of dollars in annual revenue,” she said over the phone. The company is also expanding its new MI350 lineup.
AMD shares initially fell more than 5% in extended transactions on China's concerns before releasing losses during a conference call. They scored 44% throughout their closing in 2025, and AMD is performing at the highest performance in the semiconductor industry.
The company said its third quarter revenue would be around US$8.7 billion, with an average analyst estimate of US$8.37 billion.
AMD's second quarter revenue increased 32% to US$7.7 billion, compared to an estimated average of US$7.43 billion. Profit was a share of 48 cents minus certain items. Analysts projected 49 We Cent.
Datacenter sales increased 14% over the period to US$3.2 billion. On average, analysts were forecasting US$3.25 billion. Personal computer-related sales increased 67% to US$2.5 billion. The average forecast was USD 2.56 billion.
In the decade since Su had worked as a top job at AMD, the company has become a key provider of technology across the computing industry. The ability to deliver competitive products when longtime nemesis Intel stumbled has resulted in a reversal of wealth.
AMD's market capitalization is currently about USD 220 billion higher than Intel's market capitalization. Still, neither company is consistent with the success of Nvidia's runaway run, which has made the AI accelerator dominance the most valuable business in the world.
AMD is the second largest provider of graphics chips that underlie AI accelerators running in data centers. Meanwhile, its microprocessors are directly compatible with Intel products in the PC and server market. Bloomberg
