Advanced Micro Devices (AMD) is bracing for a major financial setback after the United States government announced fresh restrictions on the export of advanced processors to China. The tech giant expects to take a hit of up to $800 million as a result of the new regulations, which are aimed at curbing China’s access to high-performance semiconductors.
This development follows a similar announcement from AMD’s larger competitor, Nvidia, which said it anticipates a staggering $5.5 billion charge due to the same export controls. These restrictions come at a time when the global tech industry is already under pressure from escalating trade tensions and supply chain disruptions.
The new export rules, rolled out by the U.S. Commerce Department, specifically target high-end AI chips. Among the impacted products is AMD’s MI308, a powerful processor used in artificial intelligence and data center applications. Similarly, Nvidia’s H20 chip also falls under the ban.
A spokesperson from the Commerce Department confirmed that new licensing requirements are now in place for these types of advanced semiconductors. However, there is little hope for exceptions. According to analysts at Jefferies, the U.S. has never granted licenses for the export of GPUs (graphics processing units) to China—casting doubt on whether AMD or Nvidia will find any relief.
China remains a crucial market for AMD. In 2024 alone, the country generated $6.23 billion in revenue for the company, representing more than 24% of its total annual sales. Losing access to this significant portion of its customer base could severely impact AMD’s growth strategy.
In a recent filing, AMD revealed that the $800 million in expected charges covers inventory write-downs, purchase commitments, and financial reserves. The company noted that while it intends to apply for export licenses, there is “no assurance” that these licenses will be approved.
Following the announcement, AMD’s shares dropped by more than 5%, echoing a similar plunge seen in Nvidia’s stock. The overall sentiment across the global semiconductor market has turned cautious, with many investors concerned about the long-term effects of the U.S.-China tech rift.
As U.S. policymakers continue to tighten their grip on chip exports, companies like AMD and Nvidia are left navigating an increasingly complex global trade environment—one that could reshape the future of AI, data centers, and consumer electronics.
