Street View: AMD to face China export snags, MI chips shows promise

Advanced Micro Devices AMD.O on Tuesday forecast a $1.5 billion hit to revenue this year due to new U.S. curbs on chips, which require the company to obtain a license to ship advanced artificial-intelligence processors to China

Shares of the chipmaker up 3.3%

AI GAMBIT

JP Morgan ("neutral", PT: $120) sees AMD's datacenter GPU revenue facing significant challenges due to export restrictions, but anticipates strong growth driven by MI350 (AI accelerator GPU) series

Jefferies ("hold", PT: $100) says AI growth estimates are falling due to the China ban, and despite strong client and server revenues, the outlook remains cautious without a clear AI growth story

TD Cowen ("buy", PT: $115) sees early traction with Oracle ORCL.N and expectations of new customers as positive indicators for AMD's AI strategy

HSBC ("reduce", PT: $75) believes eliminating MI308 AI GPU will boost co's gross margin in latter half of 2025 and is cautiously optimistic about MI400 AI server rack's potential next year

"We expect AMD to continue to outperform overall non-AI data centre and client segment," says HSBC