AMD results showed a strong quarter one, with revenues up 36pc year-on-year, but were overshadowed by a warning on sales losses due to new China export restrictions.
US semiconductor giant and Nvidia’s biggest AI chip rival, Advanced Micro Devices (AMD) has become the latest US tech player to announce strong results for the first quarter but added a cautionary note regarding quarter two, due to the current tariffs and export restrictions to China.
The company reported strong revenue of $7.4bn for the first quarter of 2025, up by 36pc compared to the same period last year.
“We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data centre and AI momentum,” said Dr Lisa Su, AMD chair and CEO.
“Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution.”
However, the chip giant, while forecasting similar revenues for the next quarter, also cautioned that “actual results could differ materially depending on market conditions”. It said it was looking at $800m in charges for inventory and related reserves “due to the new export controls.”
The strong results initially boosted AMD’s share price, with a rise of nearly 7pc, but a decline in share price followed after guidance was issued that US restrictions on sales to China will cost AMD $1.5bn in revenue this year.
According to Bloomberg, on the earnings call the company said that guidance stems from an export restriction imposed in April that targeted AMD’s MI308 chips, widely used by data centres. As a result, data centre revenue will decline this quarter it said, due to a $700m reduction in sales of that chip.
Overall, Dr Lisa Su was upbeat on the earnings call, and particularly optimistic about the company’s sales of AI chips, but its another reminder that otherwise strongly performing tech companies will be inevitably hit by both tariffs on components coming in from China, and regulations on exports of products to China.
AMD’s Irish site, formerly operated by Xilinx, was first established in 1994 with a focus on manufacturing, operations support, engineering and administration services. AMD acquired Xilinx for $35bn in 2022, making Ireland home to one of AMD’s largest R&D sites in Europe.
In 2023, the US semiconductor giant announced plans to invest up to $135m in Ireland over four years, aiming to create almost 300 new jobs at the site.
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