The increased attention to Nvidia, which is the largest supplier of computing tools for artificial intelligence systems, is understandable. The latest bans from the US will force it to write off $5.5 billion this quarter alone, but the restrictions will also hurt rival AMD, which estimated its losses at $800 million.
Image Source: AMD
Let us recall that on April 9, the US authorities imposed a ban on the supply of Nvidia H20 accelerators and comparable American-made alternatives to China. Although such activities were advertised much less than in the case of Nvidia, AMD also supplied its Instinct MI308 accelerators adapted to US requirements to China. In its recent official statement, AMD mentions that the company’s losses from the introduction of new restrictions will reach $800 million.
That’s a significant amount, given AMD’s overall turnover is proportionally smaller than Nvidia’s. AMD says it will try to obtain export licenses to help it continue serving Chinese customers in that area, but that can’t be guaranteed. Nvidia shares fell about 7% in trading on Wednesday, while AMD shares fell even more. Nvidia currently accounts for almost 90% of the server accelerator market.