AMD warns of $800 million hit from US chip export restrictions to China
- Marijan Hassan - Tech Journalist
- 2 days ago
- 1 min read
Shares of Advanced Micro Devices (AMD) experienced a decline of over 7% on Wednesday following the company's announcement that it could incur charges of up to $800 million related to exporting its MI308 products to China and other countries.
In a filing with the Securities and Exchange Commission, AMD stated, “The Company expects to apply for licenses, but there is no assurance that licenses will be granted.”
The filing also revealed that the new U.S. license requirement, which affects the export of certain semiconductor products, would impact inventory, purchase commitments, and related reserves.
AMD is a key player in providing hardware for the artificial intelligence sector. The company promotes its AMD Instinct MI300 Series accelerators as being “uniquely well-suited to power even the most demanding AI and HPC workloads,” according to its website.
The financial blow comes despite AMD reporting a record $25.8 billion in revenue for 2024, fueled in part by surging demand for AI-capable hardware.
AMD is not alone in grappling with the fallout. On Tuesday, rival chipmaker Nvidia disclosed it expects to take a $5.5 billion quarterly charge tied to export restrictions on its H20 GPUs, which are also designed for AI workloads. China ranks as Nvidia’s fourth-largest region by revenue, following the U.S., Singapore, and Taiwan.
Trump has been engaged in a trade war with China, which is weighing heavily on the commercial bottom lines of American chipmakers.
