“For the full year 2025, we estimated the revenue impact due to the export license requirement to be approximately $1.5 billion.”

In context

“ng in our share repurchase authorization. At the end of the quarter, cash, cash equivalents and short-term investment was $7.3 billion. Within the quarter, we raised $1.5 billion of debt and issued $950 million of commercial paper to help fund our acquisition of ZT Systems, which was completed on March 31st. Now turn to our second quarter 2025 outlook. As a reminder, in April, a new export license requirement was put in place for MI308 shipments to China, the impact of which is included in our guidance. We expect revenue to be approximately $7.4 billion, plus or minus $300 million. This includes an estimated $700 million revenue reduction as a result of the new export license requirement. Despite this headwind, the middle point of our guidance represents 27% year-over-year revenue growth. For the full year 2025, we estimated the revenue impact due to the export license requirement to be approximately $1.5 billion. Sequentially, we expect client and gaming segment revenue to increase by a double-digit percentage, embed segment revenue to be flattish, and we expect data center segment revenue to decrease due to the exclusion of MI308 revenue. In addition, we expect second quarter non-GAAP gross margin is estimated to be 43%, inclusive of approximately $800 million in charges for inventory and related reserves. Excluding this charge, our non-GAAP gross margin would be approximately 54%. Non-GAAP operating expenses to be approximately $2.3 billion, which includes approximately $50 million in OpEx due to the addition of the ZT System design key. The financials for the ZT manufacturing business will be reported as discontinued operations starting in the second quarter. We expect net interest and other ex”