May 8, 2025 /SemiMedia/ — AMD said on Tuesday it expects a $1.5 billion revenue loss in 2025 due to tighter U.S. export restrictions on advanced chips to China, underscoring the growing impact of trade controls on the semiconductor sector.

The rules, updated in April, require chipmakers to obtain licenses to ship high-performance AI processors to China — a market that contributes about a quarter of AMD’s annual revenue.

CEO Lisa Su said most of the financial impact will hit in the second and third quarters of 2024, but stressed that AI-related data center sales are still on track to grow by strong double digits this year.

“This is a headwind, but it’s manageable given the momentum across our broader portfolio,” Su said on a post-earnings call.

AMD had already flagged $800 million in charges tied to the new export curbs. The company now expects a full-year adjusted gross margin of 43%, down 11 percentage points from levels excluding those charges.

Despite the restrictions, AMD forecast second-quarter revenue of around $7.4 billion, plus or minus $300 million — ahead of Wall Street expectations. Analysts said customers are likely pulling forward purchases ahead of stricter enforcement.

CFO Jean Hu said the $1.5 billion hit stems from the latest round of U.S. controls, which further limit shipments of AI chips to China.

Nvidia, which also faces the same licensing requirements, recently warned of a potential $5.5 billion revenue impact from the tightened rules.