Artificial intelligence company Advanced Micro Devices Inc (AMD) said US restrictions on sales to China have cost it $1.5 billion (RM6.36 billion) this year.
The situation stems from export restrictions imposed in April targeting AMD's MI308 chip.
In addition, AMD's organization predicts data center revenue will decline due to a $700 million reduction in sales of the product.
Chief Executive Officer Lisa Su remains confident in demand for AI infrastructure, saying new chips will soon be introduced and will help boost sales in the second half of the year.
Lisa Su also voiced concerns about investor concerns about US trade restrictions and tariffs and the challenge of competing with Nvidia Corp in the AI chip market.
The quarterly report reached an optimistic level after AMD shares rose more than 7%, but fell again after the company disclosed the impact of China sales.
AMD expects about $7.4 billion in second-quarter sales, compared with the average estimate of $7.23 billion.
AMD continued to gain market share in data center processors and took share from Intel Corp. and saw strong demand for chips.
In conclusion, AMD's first-quarter sales rose $3.7 billion to $7.4 billion, beating the previous estimate of $7.12 billion.
