Lisa Su, president and CEO of AMD, talks about the AMD EPYC processor during a keynote address at the 2019 CES in Las Vegas, Nevada, U.S., January 9, 2019.
Shares of Advanced Micro Devices slumped more than 6% after the chipmaker's earnings fell short of earnings expectations and raised concerns about the timing of a restart in China shipments.
The Santa Clara, California-based company reported adjusted earnings of 48 cents per share, falling short of the 49 cents per share expected by analysts polled by LSEG.
CEO Lisa Su singled out the hit from U.S. controls on artificial intelligence chips in a call with analysts.
"AI business revenue declined year over year as U.S. export restrictions effectively eliminated MI308 sales to China, and we began transitioning to our next generation," Su said.
For the current quarter, AMD forecasted $8.7 billion in revenue, plus or minus $300 million, versus $8.3 billion expected by analysts. The company said its guidance does not account for revenue from its MI308 AI chip designed for the China market to work around chip restrictions.
During an interview with CNBC's "Squawk on the Street" on Wednesday, Su said the company has been working closely with the Trump administration on license requirements necessary to ship its chips to China, but took a "prudent" approach to its guide.
"From our standpoint, we think we have an extremely strong portfolio," she said. "Tens of billions of dollars is the opportunity in a market that's going to be, let's call it 500 billion plus over the next few years."