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AMD has emerged as one of the biggest beneficiaries from the Trump administration's decision to somewhat ease restrictions on chip sales to China, allowing the chipmaker to sell its previously scrapped inventory of China-specific MI308 GPUs at "near-zero cost and high gross margin," as per an assessment by Susquehanna analyst Christopher Rolland.
AMD is all set to report its earnings for the second quarter of 2025 on the 05th of August. As such, Rolland expects AMD to report "in line to slightly better" results for its PC business, bolstered by Intel's recent admission of continued tariff-related demand pull-in in Q2.
Next, the Susquehanna analyst stresses on the importance of AMD's renewed ability to ship its China-specific MI308 GPUs. AMD had previously disclosed that export restrictions on the MI308 GPU would result in a $1.5 billion revenue hit for the year. However, now that these restrictions have been eased, Rolland has added back around $800 million in revenue for H2 2025, while acknowledging the uncertainty around the proportion of inventory that was scrapped entirely vs. one that could still be shipped before the end of the year.
Of course, AMD had planned to write-off $800 million worth of its MI308 GPUs in inventory. Now, however, the company can sell these "obsolesced" GPUs at "near-zero cost and high gross margin, boosting 2H25 company GMs overall." Accordingly, the Susquehanna analyst expects AMD's gross margin for 2025 to increase by 1 percent to 52.8 percent.
Elsewhere, Rolland has also increased his shipment estimates for AMD's latest MI300 GPUs, now expecting the chipmaker to earn $7 billion in revenue from these GPUs vs. his prior sales estimate of $6.2 billion.
As we noted in a dedicated post, AMD has now officially unveiled its MI350 series GPUs, which are based on its 4th-gen Instinct architecture and will become available in the third quarter of 2025. According to AMD, these GPUs are capable of delivering a 4x increase in AI compute power and a 35x increase in inferencing capacity.
The Susquehanna analyst also sees sustained strength on the EPYC server side of things for AMD, driven primarily by market share gains.
Interestingly, as per Susauehanna's Q2 2025 PC-SIGnals data, AMD gained "modest" laptop processor share but lost some desktop share. Additionally, AMD's gaming segment is expected to have grown by double-digit percent quarter-over-quarter in Q2.
AMD shares are down around 1 percent in today's pre-market session. The stock is up a healthy 25 percent over the past month, however. And, on a year-to-date basis, AMD's gains are now approaching 50 percent.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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