author: Bart Swiatek
AMD and Intel Will Lose on Huawei's Problems
Goldman Sachs' analysts presented a list of American companies that will be affected by the ban on trade with the Chinese company Huawei. The list includes many entities associated with our industry, such as AMD, Intel, Microsoft or Nvidia.
On May 15 US President Donald Trump signed a decree which placed the Chinese manufacturer Huawei on the blacklist of companies forced to obtain federal government approval for the purchase of American technology and components. Yesterday, we reported the first serious consequences of this decision. However, each stick has two ends - the move by US administration will cause problems also for companies from the USA. Analysts from Goldman Sachs prepared a list of companies that will suffer as a result of the situation (behind TechPowerUp). The list includes AMD, Nvidia, Microsoft and Intel.
Most of the money - as much as 84 million dollars - will be lost by the last of the aforementioned companies. In turn, AMD must prepare for the loss of more than twice as much money (38.79 million dollars), but - paradoxically - it is for AMD that the recent steps of the US administration may turn out to be the most problematic. In the case of the group managed by Dr. Lisa Su, Huawei's interests account for the majority of total revenues, which means a much higher risk.
The ban on trade with the Chinese manufacturer will also hit Microsoft and Nvidia, but their problems will be much smaller. The worst situation is in the case of companies heavily involved in the mobile devices market, such as Qualcomm or Broadcom - in their case the losses may exceed USD 500 million. Media and memory manufacturers such as Seagate and Micron will do little better in this situation (although the latter does not rely so heavily on Huawei for business).
List of companies that will lose on the trade ban. Source: Reuters.