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 export 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 U.S.-built GPUs. Allowing China-based companies to obtain these chips, in particular AI companies, threatens the U.S.’ dominance in AI as well as national security, they argued.
In a statement provided to Reuters yesterday, a U.S. Commerce Department spokesperson said that the license requirement is in service of “the President’s directive to safeguard our national and economic security.”
This is a developing story, check back later for updates.
