AMD estimates $800M charge on US license requirement for AI chips

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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 receive a license, the corporate might be on the hook for roughly $800 million in stock, buy commitments, and associated reserves costs, it stated in a submitting with the SEC on Wednesday. In line with AMD, the brand new export guidelines apply to the corporate’s MI308 GPUs.

“On April 15, 2025, [AMD] accomplished its preliminary evaluation of a brand new license requirement carried out 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 numerous chipmakers, together with AMD’s chief rival Nvidia. In a submitting Tuesday, Nvidia stated it anticipates $5.5 billion in associated costs in its Q1 2026 fiscal yr, which ends April 27.

A number of authorities officers had been calling for stronger export controls on U.S.-built GPUs. Permitting China-based firms to acquire these chips, particularly AI firms, would threaten the U.S.’ dominance in AI in addition to nationwide safety, they argued.

In an announcement supplied to Reuters yesterday, a U.S. Commerce Division spokesperson stated that the license requirement is in service of “the President’s directive to safeguard our nationwide and financial safety.”

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