Advanced Micro Devices (AMD) announced that it expects to incur charges of up to $800 million due to the latest U.S. export restrictions on advanced processors to China. The move follows similar measures imposed on Nvidia, which expects $5.5 billion in charges as it faces limitations in servicing one of its largest markets.
AMD confirmed that these restrictions apply to its MI308 products, a significant part of its operations, as the U.S. Commerce Department has introduced new licensing requirements for chips, including AMD’s MI308 and Nvidia’s H20. This move severely impacts global tech stocks, with both AMD and Nvidia shares falling more than 5%.
China was AMD’s second-largest market in 2024, generating $6.23 billion in revenue, representing over 24% of its total sales. The company stated that the charges are related to inventory, purchase commitments, and reserves, with no guarantees that licenses for exports will be granted.
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