AMD's China concerns overshadow upbeat sales forecast for AI business

Advanced Micro Devices (AMD), the second-largest maker of artificial intelligence (AI) processors, warned that its return to the crucial China market remains a work in progress, overshadowing a generally upbeat forecast for its AI business.

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SAN FRANCISCO -

As part of its quarterly earnings report on Aug 5, AMD declined to predict Chinese sales of its Instinct M1308, an AI processor it designed for the country.

US President Donald Trump's administration had barred shipments of such chips to China in April, though it reversed course in July, raising hopes that AMD and rival Nvidia could soon resume sales.

China is the largest market for semiconductors, and the restrictions have threatened to erase billions of dollars in total revenue from both companies.

"As our licenses are still under review, we are not including any M1308 revenue in our third-quarter guidance," chief executive Lisa Su said on a conference call with analysts.