Why are all the AI stocks down this week? Largely due to earnings. So what's wrong with earnings?
Let's ask AMD CEO Lisa Su.AMD beat on revenue but the market freaked when they disclosed they had ZERO revenue from their top AI chip to China. They sold ZERO chips to China. How the hell did that happen Lisa Su?
Well like Intel and Nvidia, Trump extorted AMD and made them sign a deal to pay 15% of their China AI revenue to him, or the government technically. AMD agreed, signed the deal, and then bought export licenses, and they have been waiting ever since for the administration to give them the new regulations so they can sell chips to China. ANd they're still waiting. So they can't sign any deals with China to sell chips until the government gives them the rules. They already paid for the licenses, which btw expire 12/31 but they don't have the rules yet.
Su declined to call out how much revenue it cost them, but once the analysts on the call saw that they freaked and AMD is down almost 10% this week.