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

AMD has said that the need for the US government’s license to control AI chip export to China and some other countries can materially affect its earnings.

If AMD does not get a successful license, the company may be on top of the hook for about $ 800 million inventory, purchase and related reserve charges, the company said in a filing to SEC on Wednesday. According to the AMD, the License Control requirement applies to the MI 308 GPU of the agency.

“April 15, 2025, [AMD] It has completed the initial evaluation of a new license requirement applied by [U.S.] China (including Hong Kong and Macao) and D. D: The Government wrote in the AMD filing for export of specific semiconductor products in 4 countries. ” The the the the the [export control] Applicable [AMD’s] MI 308 products. The company expects to apply for a license but there is no guarantee that the license will be issued. “

In the case of pre-market business, the AMD stock declined by about 7%.

The newly imposed export controls of the United States affect a number of chipmakers, including AMD’s main rival Nvidia. A filing TuesdayNvidia says that it is expected of $ 5.5 billion on the charges related to its Q1 2026 fiscal year, which ends on April 27.

Multiple government officials called for strong export controls on US -built GPUs. They argue that China-based agencies threatens the US domination in AI and national protection to get these chips, especially AI companies.

This is a developer story, check again later for the update.