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[QUOTE="Munyaradzi Mafaro, post: 41892, member: 636"]
AMD faces profit pressure from new US rules about China trade. The company must pay 800 million dollars for special MI308 graphics cards it cannot sell. Government rules stop AMD from shipping these powerful chips to Chinese customers. The chipmaker warned investors about lower earnings during the second quarter.

Profit margins will drop from 54 percent down to 43 percent because of the extra costs. Most Wall Street experts added these charges to their profit predictions for AMD. KeyBanc analyst John Vinh changed his earnings estimate to match other financial experts. He lowered his prediction from 90 cents per share to 47 cents per share.

Trump administration officials might ease some China trade restrictions as part of bigger deals. Kevin Hassett from the National Economic Council suggested possible changes to current policies. The government will likely keep blocking AMD graphics cards designed for Chinese markets. Trade talks between America and China will decide the final rules for chip companies.
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