AMD estimates $800M charge on US license requirement for AI chips
AMD says that the U.S. government’s license control requirement for exporting AI chips to China and certain other countries may impact its earnings materially.
If AMD doesn’t successfully obtain a license, the company could be on the hook for roughly $800 million in inventory, purchase commitments, and related reserves charges, the company said in a filing with the SEC on Wednesday. According to AMD, the license control requirement applies to the company’s MI308 GPUs.
“On April 15, 2025, [AMD] completed its initial assessment of a new license requirement implemented by the [U.S.] government for the export of certain semiconductor products to China (including Hong Kong and Macau) and D:5 countries,” AMD wrote in the filing. “The [export control] applies to [AMD’s] MI308 products. The company expects to apply for licenses but there is no assurance that licenses will be granted.”
AMD stock was down around 7% in pre-market trading.
The U.S.’s newly imposed export controls impact a number of chipmakers, including AMD’s chief rival Nvidia. In a filing Tuesday, Nvidia said it anticipates $5.5 billion in related charges in its Q1 2026 fiscal year, which ends April 27.
Multiple government officials had been calling for stronger export controls on the U.S.-built GPUs. Allowing China-based companies to obtain these chips, in particular AI companies, threatens the U.S.’ dominance in AI and national security, they argue.
This is a developing story, check back later for updates.
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2025-04-16 13:09:52
