AMD Faces $800M Charge Due to US AI Chip Export Restrictions
AMD Warns of Potential Earnings Impact from AI Chip Export Controls
AMD has indicated that recently implemented U.S. government regulations concerning the export of artificial intelligence chips to China, along with several other nations, could significantly affect its financial performance.
The company stated in a filing with the Securities and Exchange Commission (SEC) that a failure to secure the necessary export licenses could result in approximately $800 million in charges. These charges would relate to existing inventory, purchase obligations, and associated reserve provisions.
New Export Rules and MI308 GPUs
According to AMD, the new export controls specifically target its MI308 GPUs. The assessment of these regulations was completed on April 15, 2025.
The filing details that the controls apply to semiconductor products being exported to China, including Hong Kong and Macau, as well as countries designated as D:5. While AMD intends to apply for the required licenses, approval is not guaranteed.
Following this announcement, AMD’s stock experienced a decline of approximately 6% during Wednesday’s early trading hours.
Impact on Other Chip Manufacturers
These newly imposed export restrictions are not limited to AMD. Nvidia, a primary competitor, is also affected.
Nvidia disclosed in a Tuesday filing that it anticipates incurring charges of $5.5 billion in its first quarter, ending April 27, due to these export controls.
Intel is similarly facing export limitations, as reported by Reuters. The restrictions reportedly apply to the company’s Gaudi series of hardware, but do not extend to its central processing units (CPUs).
Rationale Behind the Export Controls
Numerous government officials have advocated for stricter export controls on U.S.-manufactured GPUs.
The concern is that allowing Chinese companies, particularly those focused on AI development, access to these chips could jeopardize U.S. leadership in the field of artificial intelligence and compromise national security interests.
U.S. Commerce Department Statement
A spokesperson for the U.S. Commerce Department affirmed that the license requirement is aligned with “the President’s directive to safeguard our national and economic security,” as stated to Reuters.
This action underscores the U.S. government’s commitment to protecting its technological advantages and ensuring national security in the rapidly evolving landscape of artificial intelligence.
Updated 3:01 p.m. Pacific: Information regarding Intel chip export restrictions, as reported by Reuters, has been added.
