AMD's restricted access to China's AI chip market may heavily dent revenue despite a strong Q3 forecast; here's why
FILE PHOTO: The AMD logo and a decreasing stock graph are seen in this illustration taken August 3, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
Tired of too many ads?
Remove Ads
AMD's Q3 projections
Tired of too many ads?
Remove Ads
AMD shares 2025 performance
Demand for AMD processors remains strong
Advanced Micro Devices ( AMD ) forecast third-quarter revenue above Wall Street estimates on Tuesday (August 5, 2025) but warned that its access to the China market remains uncertain due to the pending review of its license applications to export its MI308 chips to the East Asian country.AMD, the second-largest maker of AI accelerator chips, is betting on upbeat demand for its artificial intelligence chips from businesses rushing to expand infrastructure to dominate the latest technology. Shares of the Santa Clara, California-based company rose 2% in extended trading.The company expects revenue of about $8.7 billion for the third quarter, plus or minus $300 million, compared with analysts' average estimate of $8.30 billion, according to data compiled by LSEG.The outlook does not include any revenue from AMD's AI chip MI308's shipments to China, as license applications are currently under review by the US government, the company said.The company said last month the Department of Commerce would review its license applications to export its MI308 chips to China, and it plans to resume those shipments when licenses are approved, after U.S. curbs announced in April required it to obtain a license to ship advanced AI processors to China.AMD had forecast a $1.5 billion hit to revenue this year due to these curbs, with most of the impact affecting the second and third quarters.AMD's shares have climbed more than 40% this year, far outpacing a nearly 12% jump in the benchmark chip index, as investors bet on the company's ability to capitalize on the widespread use of AI.Demand remains robust for AMD's advanced processors that power complex AI systems for Microsoft, Meta Platforms, generative AI leader OpenAI, and other customers, with the company set to benefit from cloud giants bumping up their hefty spending plans for building AI infrastructure.Meta has raised the bottom end of its annual capital expenditure forecast by $2 billion, to a range of between $66 billion and $72 billion. Similarly, Microsoft forecast a record $30 billion in capital spending for the first quarter of the current fiscal year to meet soaring AI demand.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
14 minutes ago
- Indian Express
India doesn't need more linguistic nationalism — it needs scalable AI-powered classrooms
Sridhar Vembu, co-founder of Zoho, has been calling for Indians to work in native languages, claiming India's talent, including in tech, is held back by linguistic barriers. '95 per cent of Indians are not fluent in English,' he states. The case for linguistic confidence has merit, but Vembu's myopic argument stems from nationalistic sentiment rather than the path to opportunity. An innovator is gate-keeping AI's capacity to immediately and affordably overcome all language challenges. When leaders with the means to effect on-ground change tell students they don't need to learn English or gain foreign degrees, they omit to mention that both are what got them a seat at the negotiating table of the $4.9 trillion global tech industry. It is not that our students have an inherent inability to learn, but that our techno-educational pipeline cannot teach them. They have not been provided with credible, available, and meritorious learning opportunities. In the 2009 Programme for International Student Assessment (which tests & ranks global education systems), India ranked 72nd out of 73. By boycotting subsequent assessments, we abdicated accountability that undermines showy calls for AI-driven reform. Claiming students don't need the positioning resurrects feudal structures that keep the oppressed reliant on those who do have the currency and negotiability of a global lingua franca. India faces a staggering teacher shortage of approximately 1.5 million educators, leading to overcrowded classrooms; 1.2 lakh schools operate with a single teacher, 89 per cent located in rural areas. Tech leaders citing China's linguistic nationalism forget it has a single script with idiomatic dialect variations. Government-funded scholarships enable their students to conduct research overseas and repatriate their learnings. India has 780 languages and 68 scripts. China has over $1 billion invested in AI education, with 99 per cent of Chinese university faculty and students now using AI tools, 60 per cent frequently. Through the USA's robust public library system, internet access, laptops, sometimes even MacBooks, are made accessible. Instead of enabling such innovations, our techbros are caught in nationalistic debates rich with excuses. Today, what matters more than anything is how we leverage AI immediately. India's Sarvam AI models process code-mixed content in 10 languages with 97 per cent accuracy, including the open-source Shuka v1 audio model. Its content can reflect real-world Indian language usage, handle complex educational terminology, and run efficiently on edge devices, including smartphones. Sarvam is already tasked with building India's sovereign foundational model under the IndiaAI Mission. Organisations like Rocket Learning are already using AI in childhood education, with 75 per cent of children becoming school-ready, while the AICTE's 'Anuvadini' tool supports 22 regional languages. Such progress removes needless linguistic divisiveness. Integrating multiple emergent open-access agentic technologies can transform our education systems overnight with political will and industry focus. There is no longer any excuse for not implementing widespread education reform. From public information messaging to highly specialised technical education, it is possible to customise lessons, automate recursive testing, standardise grading and disseminate it widely. All any village in India needs is electricity, wifi and a smartphone. Regionality is a cocoon of caste and class divisions. AI disrupts this. Real-time translation capabilities offer learners multilingual capacity, and the artificial scarcity of access disappears. Just as English historically offered a neutral modality, thousands of Indians took to the binary coding language precisely because it enabled them to adopt a vocabulary that was mathematically impersonal and logically freeing. Such neutrality is what enables unprecedented social mobility. India needs hypermobility, not hyperregionality. We need to eliminate the false choice between cultural authenticity and educational advancement. AI-powered Intelligent Interactive Teaching Systems (IITS) can personalise learning, generate educational content, and eliminate knowledge gaps dynamically. UNICEF India's research confirms that AI-powered tools can adapt to each child's pace regardless of linguistic background. Unlike human teachers, AI systems can also work 24/7 and reach remote villages with a consistent quality for India's 1.5 million schools. While 60 per cent of school children in India cannot access online learning, mobile penetration is fast-paced: 58 per cent of higher-class students have smartphone access. This creates the opportunity for leapfrogging traditional educational infrastructure. The National Education Policy 2020 explicitly calls for AI integration at all educational levels. What we lack is the urgency to deploy at scale, and what we are getting are excuses galore. India can chuck the outdated Government-school model and switch to a digital library model. Equipped with internet and wifi, students of all ages can teach themselves with pre-loaded modules. An 80-year-old housewife, a 40-year-old farmer or a 20-year-old mechanic can go back to 'school' at any time of day and grab opportunities they never had. AI can provide feedback in real-time, freeing limited human teachers to mentor. India's youth don't need to be told what they don't need to learn or be advised to stay in their villages by those who had the choices to learn, leave, grow, and return. The power brokers who gained influence through access to knowledge don't get to construct barriers to prevent others from following suit. Critics cite infrastructure, data privacy, and implementation challenges. These are the problems to solve while deploying, not reasons to delay deployment. The question is no longer whether AI will transform Indian education, but whether we will act swiftly enough to push enough of our populace through on the momentum of this age, before they get left behind. Das is a Mysuru-based author, therapist, independent AI researcher & co-founder of Project Shunyata, a group that examines AI through the lens of Buddhist Philosophy
Economic Times
20 minutes ago
- Economic Times
Autodesk launches regional data offerings in India, enabling local data storage
San-Francisco headquartered Autodesk on Thursday announced the expansion of its regional data offerings to India, enabling businesses and public sector organisations to store their data within the country. The move enables enterprises, particularly those in regulated sectors such as infrastructure, government, and utilities, to select India as their primary data storage location when utilising Autodesk's cloud collaboration tools. "The newly introduced India-based regional storage offering will empower businesses and public institutions to harness the full potential of cloud-powered design and construction, while delivering international standards of data integrity and performance. "India is a strategic growth market for Autodesk, and we are launching focused initiatives to offer tailored design and make solutions suiting the Indian realities," said Kamolika Peres Gupta, Vice President, India and SAARC, Autodesk. The India-based data storage capability applies to products including Autodesk Docs, Autodesk BIM Collaborate, and Autodesk BIM Collaborate Pro. The regional offerings are supported by Amazon Web Services (AWS) infrastructure in India. With this launch, India joins other regions, including the United States, the European Union, Australia, the United Kingdom, Germany, Japan, and Canada, where Autodesk provides regional data storage options.
India.com
20 minutes ago
- India.com
Data, Traffic Accumulated By Musks Starlink Will Be Stored In India: Minister
New Delhi: The data, traffic and other details accumulated by Elon Musk's Starlink will be stored in India, and the domestic user traffic is not to be mirrored to any system/server located abroad, the Parliament was informed on Thursday. The Department of Telecommunications (DoT) has granted a Unified License (UL) to Starlink Satellite Communications Private Limited after agreeing to the stipulated terms and conditions of the UL, including security conditions. The satellite company is set to begin its affordable internet services soon in the country. Minister of State of Communications and Rural Development, Dr Pemmasani Chandra Sekhar, told the Rajya Sabha, in a written reply, that the "security conditions, inter-alia, include the establishment of earth station gateway(s) in India for providing satellite-based communication services with no user traffic originating from or destined for India to be routed through any gateway located outside India, no copying and decryption of the Indian data outside the country, and the Indian user traffic is not to be mirrored to any system/server located abroad." DoT had sought recommendations of the Telecom Regulatory Authority of India (TRAI) on terms and conditions of spectrum assignment, including spectrum pricing, for providing satellite-based communication services. "Satellite-based communication services is an upcoming area and, as any new economic activity would do, it is also expected to generate employment in the country, as it involves, inter alia, the installation, operation and maintenance of the telecom network including user terminal equipment," the minister said. Starlink was given a Unified License in June, and it received IN-SPACe authorisation last month. The Indian National Space Promotion and Authorisation Centre (IN-SPACe) approved Musk's Starlink for a period of five years in the country. Starlink now needs to acquire spectrum from the government and establish ground infrastructure for its services. The DoT is set to grant trial spectrum to the US-based space firm to complete security compliance demonstrations.
