Intel, AMD and NVIDIA’s Revenues Set to Drop Amid the US-China Trade War

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Major chipmakers such as Intel, AMD, NVIDIA, and Qualcomm are caught between the heated trade tension between the US and China that has been going on for the past two weeks. Recently, Trump administration issued a blacklist on Huawei products upon which Google and the chipmakers agreed not to supply products and services to Huawei.

However, it appears like Huawei had been expecting this boycott and had been stockpiling chips for quite some time. Also, the company is currently working on its own operating system for its cell phones which is rumored to launch as soon as this fall.

Due to this blacklist, it is very evident that Huawei is going to take some hit in profits now that Google will stop providing its services notably the Google Play Store and the Android OS, But this trade cuts both ways as many US suppliers are expecting a loss.

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Goldman Sachs released a list of US suppliers which are also expecting a loss after the Huawei ban. Intel Broadcom, Qualcomm, and Micron top the list with Intel losing about $85 million and AMD losing about $39 million which amounts to 2% of the profits generated by AMD.

To sustain in this competitive tech market after the ban, Huawei is asking for help from major Chinese firms such as Tencent and WeChat to continue its operations and avoid a shutdown.

A couple of years ago, ZTE suffered a similar fate of “death penalty” by the US government over trade sanctions which led to a ban from the US. But it seems like Huawei might just be able to survive owing to its global rank of 2 in terms of smartphone popularity falling right behind Samsung and above Apple.

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For starters, Huawei has guaranteed its customers that their existing phones will continue to receive Google’s services and the company can sell their phones with Play Services under the temporary 90day license issued by the Department of Commerce.

This trade escalation initially started by the trump’s tariff hike over the exports of US goods to China. Detailed information about this trade chaos and its impact on the tech industry can be read here:

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