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AMD Warns of $1.5 Billion Revenue Hit from U.S. China Chip Export Curbs, But AI Demand Remains Strong

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Advanced Micro Devices (AMD) warned on Tuesday that new U.S. restrictions on AI chip exports to China will cost the company $1.5 billion in revenue for 2025, as Washington intensifies efforts to limit China’s access to advanced technology. Despite the projected hit, AMD’s second-quarter revenue forecast surpassed Wall Street expectations, buoyed by early chip purchases from customers bracing for trade disruptions.

The Biden and Trump administrations have both ramped up controls on exports of high-performance chips to China, citing national security risks related to AI capabilities. These measures now require chipmakers like AMD and Nvidia to obtain export licenses, effectively slowing or blocking shipments of advanced processors.

CEO Lisa Su said most of the export-related impact will be felt in Q2 and Q3, but expressed confidence in broader business strength. “It’s certainly a headwind, but one which we think is well contained,” Su said, noting that AI chip revenue in AMD’s data center segment is expected to grow by “strong double digits” this year.

China represents about 25% of AMD’s total revenue, and the export curbs are expected to shave nearly 5% off 2025 revenue projections, which currently sit at $31.03 billion, per LSEG data.

In Q1, AMD reported:

  • Total revenue of $7.44 billion, up 36% year-over-year, beating the estimate of $7.25 billion

  • Adjusted earnings of 96 cents per share, 2 cents above consensus

  • Data center revenue surged 57% to $3.7 billion, above the $3.62 billion estimate

For Q2, AMD expects revenue of $7.4 billion ± $300 million, also ahead of forecasts. However, the company is still absorbing an $800 million charge due to April’s newly enacted tariffs.

CFO Jean Hu confirmed the $1.5 billion forecasted revenue loss is tied directly to the latest April export controls. Analysts suggest the current surge in orders reflects “pre-buying behavior” from large cloud clients like Microsoft and Meta, who are stockpiling chips ahead of licensing uncertainty.

“Once those safety-stock closets are full, Q3 could feel like the morning after a Red Bull binge,”
warned Michael Schulman, CIO at Running Point Capital.

Meanwhile, rivals Marvell Technology and Super Micro both disappointed investors, citing economic uncertainty and reduced AI-related optimism. Their shares fell 4.5% and 5%, respectively, in after-hours trading.

AMD’s solid results highlight its growing role in powering AI infrastructure for hyperscalers, even as trade tensions and tariffs loom over the semiconductor industry.

Meta Wins $168 Million in Landmark Case Against NSO Group Over WhatsApp Spyware Abuse

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Meta Platforms has secured a significant legal victory, winning a $168 million verdict against Israeli spyware company NSO Group in a long-running lawsuit over the unauthorized use of WhatsApp servers to deploy spyware on users’ devices. The ruling marks the first major courtroom win against a surveillance firm for the deployment of illegal spyware.

A California jury awarded Meta $444,719 in compensatory damages and $167.3 million in punitive damages, capping a six-year legal battle that began with a 2019 lawsuit. In December, a federal judge had already ruled that NSO unlawfully exploited a WhatsApp vulnerability to implant surveillance software.

Meta hailed the outcome as a “step forward for privacy and security”, adding that the verdict sets a precedent in holding spyware developers accountable.

A Rare Glimpse Into the Spyware Industry

The trial revealed rare insights into NSO’s operations:

  • Between 2018 and 2020, NSO charged governments $7 million to hack up to 15 devices simultaneously.

  • Cross-border hacking features cost an additional $1–2 million.

  • NSO maintained a 140-person research team with a $50 million budget, some of which was used to exploit smartphone security flaws.

  • Court testimony confirmed customers included Uzbekistan, Saudi Arabia, and Mexico.

Despite NSO’s claim that its software is intended to fight terrorism and crime, human rights advocates, such as Natalia Krapiva of Access Now, labeled the firm a “poster child for surveillance abuses.” She called the ruling a signal to the spyware industry: “There will be consequences if you act carelessly or brazenly.”

Continued Secrecy and Legal Resistance

NSO has indicated plans to appeal the verdict, saying it would pursue all legal remedies. Much of the case remained shrouded in secrecy, with Judge Phyllis Hamilton criticizing the firm for withholding evidence and ignoring court orders. The Israeli government even intervened, seizing documents to prevent their disclosure in U.S. courts.

This case, which reached as far as the U.S. Supreme Court, has been closely watched by privacy advocates, surveillance industry players, and governments worldwide, as it underscores both the legal vulnerability of spyware firms and the growing demand for greater accountability in cyber surveillance practices.

Meta’s Lawsuit Against NSO Unveils Rare Details of Global Spyware Industry

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Meta’s $168 million court victory against Israeli spyware maker NSO Group has not only concluded a protracted six-year legal battle but also offered an unprecedented look into the shadowy world of cyberespionage, where elite surveillance tools come with multimillion-dollar price tags and state-level buyers.

A California federal jury found NSO guilty of unlawfully hacking WhatsApp servers to target users on behalf of foreign intelligence agencies, awarding Meta both compensatory and punitive damages. The lawsuit, first filed in 2019, became a landmark case for digital privacy advocates and a rare legal showdown against a prominent spyware firm.

Top-Tier Spyware Comes at a High Cost

Testimony revealed that NSO charged European clients about $7 million for access to its spyware platform capable of hacking up to 15 devices simultaneously. For additional capabilities—like hacking phones outside of a client’s national borders—customers paid up to $2 million more, according to Sarit Bizinsky Gil, NSO’s VP of global business operations.

Meta’s attorney Antonio Perez called the software “highly sophisticated” and “extremely expensive,” underscoring the elite and dangerous nature of such tools.

Thousands of Devices Compromised

Between 2018 and 2020, NSO broke into thousands of devices, according to Tamir Gazneli, the company’s VP of R&D. He downplayed the term “spyware,” insisting the tools were used for “intelligence gathering,” not spying on people. In a tense exchange, Perez asked, “You don’t consider the targets people, Mr. Gazneli?” — a question that revealed how NSO distances itself from the ethical weight of its clients’ actions.

U.S. Agencies Paid Millions

Court records showed that the CIA and FBI collectively paid NSO $7.6 million. While prior media reports suggested U.S. involvement, this trial provided the first official financial confirmation, including a CIA-backed spyware purchase for Djibouti and FBI testing efforts.

NSO Continued Hacking During Litigation

Meta alleged that NSO continued to target WhatsApp servers even after the lawsuit was filed, saying the firm “poses a significant threat of ongoing and prospective harm.” Meta is now seeking a permanent injunction to block NSO from accessing its platforms.

This case has not only highlighted the legal vulnerabilities of spyware vendors but also peeled back layers of secrecy surrounding government surveillance contracts, client relationships, and the massive scale of digital intrusions involved.