AMD is set to report its fourth-quarter earnings after the bell on Tuesday. The move comes as President Trump’s 10% tariffs on Chinese-made goods come into effect, affecting the broader electronics market. Meanwhile, a Chinese AI startup called DeepSeek has sent shockwaves through Wall Street with its announcement that it produced an AI model capable of rivaling Silicon Valley’s leading-edge models at a fraction of the cost.
AMD shares have struggled in recent months, falling 34% compared to Nvidia, despite gaining ground on Intel. The company’s Data Center business is expected to drive revenue growth, but the overall PC market remains slow due to the push towards AI-powered computers.
Wall Street expects AMD to report earnings per share of $1.09 on revenue of $7.5 billion for the quarter. However, with Trump’s tariffs potentially driving up prices and affecting consumer demand, chip manufacturers like AMD could face slowing sales.
The impact of the tariffs will be felt in the broader electronics market, including servers and PCs built in China. If consumers and businesses are deterred by higher prices, it could lead to a slowdown in sales for AMD and other chipmakers. Additionally, Trump’s proposed tariffs on semiconductors could drive up prices over the long term, making it challenging for companies to build new facilities.
As investors consider these factors during AMD’s earnings call, they will also be keeping a close eye on DeepSeek’s development. The company’s announcement has sent stocks in AI chipmakers like AMD lower, with Nvidia falling 19% and AMD dropping more than 9%.
Source: https://finance.yahoo.com/news/amd-to-report-q4-earnings-as-tariffs-take-hold-deepseek-fears-linger-184143763.html