After Nvidia reveals that it may have a loss of $ 5.5 billion thanks to new export restrictions to China instituted by the United States, AMD has revealed that it will also be affected by them. According to the company, it can be forced to Spend $ 800 million just to be able to adapt to new requirements.
A document registered by the company with the country’s Securities and Exchange Commission states that this amount will be dedicated to management of inventory, purchase commitments and related reserves. She also states that she intends to register to get new export licenses, but notes that she is not guaranteed to get them.
For comparison purposes, the $ 800 million correspond to approximately 50% of all net revenues that the company obtained during the last fiscal year. In the registered document, AMD also notes that its predictions are based on very uncertain market, and the value may change depending on “material factors” and “global economic conditions”.
With competitor Nvidia, AMD is one of the companies that should suffer the most from the trade war that the United States started against China. In addition to increasing rates against Chinese products by 245% (something that may have already changed), the country has also restricted several technology items that can be sent to your opponent.
Although President Donald Trump has stated that he can exempt many companies to pay fees, it is still uncertain how it will work. Also has not helped much the fact that the ruler’s policies have been shown to be volatile and are marked by successive increases in fees and advertisements for temporary suspensions – which may or may not be invalidated a few hours or days later.
Given the current situation, AMD should not be the only company to have considerable losses in its operations in the coming months. Currently, the company works to finalize EPYC “Venice”, based on Zen 6 architecture, which is expected to hit the market in 2026 with 2nm production from TSMC.
Source: Securities and Exchange Commission
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Source: https://www.adrenaline.com.br/amd/amd-pode-perder-us-800-milhoes-com-novas-taxas-para-exportar-para-a-china/
