AMD’s results showed a solid quarter, with income up to 36 % year after year, but they were eclipsed by a warning about sales losses due to new China’s export restrictions.
The US semiconductor giant and the largest rival of Nvidia artificial intelligence chips, Advanced Micro Devices (AMD) has become the last American technological player to announce strong results for the first quarter, but added a current taritional note with respect to the quarter.
The company reported strong income of $ 7.4 billion for the first quarter of 2025, more in 36 % compared to the same period last year.
“We provide an outstanding start to 2025 since the growth year after year accelerated for the fourth consecutive trimester promoted by the fortress in our main businesses and expanding the data center and the impulse of AI,” said Dr. Lisa her, President and Executive Director of AMD.
“Despite the dynamic and regulatory environment, our results of the first quarter and the perspective of the second quarter highlights the strength of our differentiated products portfolio and consistent execution.”
However, the chips giant, while predicting similar income for the next quarter, also warned that “real results could differ material depending on market conditions.” He said he was looking for $ 800 million in inventory positions and related reserves “due to new export controls.”
The solid results initially increased the price of AMD shares, with an increase of almost 7 percent, but a decrease in the price of the shares followed after an orientation was issued that US restrictions on sales to China will cost $ 1.5 billion of income this year.
According to Bloomberg, in the gain call, the company said that the guidance voice of an export restriction imposed in April that was addressed to the AMD MI308 chips, widely used by the dates centers. As a result, the income of the data center will decrease this quarter that he said, due to a reduction of $ 700 million in the sales of that chip.
In general, Dr. Lisa was optimistic in the gain call, and particularly optimistic about the sales of the company’s artificial intelligence chips, but it is another reminder that the technological companies that otherwise perform strongly will be inevitably affected by both in the coming components.
The Irish Site of AMD, formally operated by Xilinx, was first established in 1994 with an approach to manufacturing services, operations support, engineering and administration. AMD acquired Xilinx for $ 35 billion in 2022, turning Ireland into the home of one of the largest R&D sites in AMD in Europe.
In 2023, the US semiconductor giant announced plans to invest up to $ 135 million in Ireland for about four years, with the aim of creating almost 300 new jobs on the site.
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