AMD CFO Jean Hu confirms no new China chip production despite licenses and denies an AI bubble exists while discussing $500 billion TAM.
Jean Hu confirmed earlier today that the firm is not starting new chip production for its China products despite being granted licenses by the Trump administration. Hu, along with AMD’s vice president of investor relations, Matthew Ramsay, spoke at a Citigroup conference earlier today, where they discussed the firm’s total addressable market for artificial intelligence and rising costs and AMD’s ability to convert them into improved margins in an industry where gross margins drive stock performance.AMD CFO Asserts AI Is In Early Stages & Skips Commenting On Whether It’s A Bubble
Hu and Ramsay’s talk at the Citigroup conference touched on a variety of topics. AMD, like NVIDIA, had to write off its China GPU inventory due to US license restrictions. When asked about whether AMD was modifying its China investments or considering a modified chip, Hu outlined that AMD was currently working out „if Chinese customers can be allowed to buy from U.S.“
She added that AMD was „not starting new wafers for MI308“ GPU. The MI308 is AMD’s China-specific GPU, and the CFO added that the firm was ensuring that it can clear out its existing inventory. However, further investment in Chinese products depends on whether AMD „can get the license for our next generation“, she said.
Ramsay was more forthcoming about the current market environment in China as he stated that „I think inside of China, there’s a larger demand for AI processing silicon than there is ability to manufacture that silicon in China.
