AMD says that the U.S. authorities’s license management requirement for exporting AI chips to China and sure different international locations might impression its earnings materially.
If AMD doesn’t efficiently get hold of a license, the corporate could possibly be on the hook for roughly $800 million in stock, buy commitments, and associated reserves expenses, the corporate stated in a submitting with the SEC on Wednesday. In accordance with AMD, the license management requirement applies to the corporate’s MI308 GPUs.
“On April 15, 2025, [AMD] accomplished its preliminary evaluation of a brand new license requirement applied by the [U.S.] authorities for the export of sure semiconductor merchandise to China (together with Hong Kong and Macau) and D:5 international locations,” AMD wrote within the submitting. “The [export control] applies to [AMD’s] MI308 merchandise. The corporate expects to use for licenses however there isn’t a assurance that licenses shall be granted.”
AMD inventory was down round 7% in pre-market buying and selling.
The U.S.’s newly imposed export controls impression a variety of chipmakers, together with AMD’s chief rival Nvidia. In a filing Tuesday, Nvidia stated it anticipates $5.5 billion in associated expenses in its Q1 2026 fiscal yr, which ends April 27.
A number of authorities officers had been calling for stronger export controls on the U.S.-built GPUs. Permitting China-based corporations to acquire these chips, particularly AI corporations, threatens the U.S.’ dominance in AI and nationwide safety, they argue.
This can be a growing story, verify again later for updates.