AMD Loses $800 Million Amid MI308 Restrictions
Financial performance AMD in Q2025 XNUMX will come under serious pressure due to US restrictions on the export of MI308, a specialized GPU for the Chinese market. As stated in the Q1 report, the company expects write-off of inventory and contractual obligations totaling approximately $800 million, which will directly affect its margins and profit for the current quarter.
According to AMD's own forecasts, Gross profit in the second quarter will fall to 43%, whereas without taking these one-off losses into account it could have been around 54%. Despite the fact that such expenses are usually treated as one-off and ignored when assessing operational efficiency, Most Wall Street analysts included these costs in their forecasts., which significantly adjusted earnings per share (EPS) expectations.
KeyBanc analyst John Vinh said his team was forced to AMD's Q2 earnings forecast was cut to $0.47 per share from the previous estimate of $0.90, to stay within the consensus. By comparison, the current average Wall Street forecast is $0.57. This change in perception suggests a possible doubts about the "one-time" nature of losses — Investors fear that the restrictions on MI308 will remain in place for a long time.
Meanwhile, U.S. officials have hinted at a possible easing of export restrictions in talks with China. However, National Economic Council Chairman Kevin Hassett said expansion of supplies GPU to China is unlikelyand The limitations on MI308, like on NVIDIA H20, will remain in place for the foreseeable future.
