Advanced Micro Devices (AMD) announced it faces potential costs of approximately $800 million due to new U.S. export license requirements for artificial intelligence (AI) semiconductor products. The company disclosed this significant financial impact in a recent filing with the U.S. Securities and Exchange Commission (SEC).
The financial charge primarily relates to inventory, purchase commitments, and reserves associated with AMD’s MI308 GPUs, specialized graphics processing units used in AI applications. AMD stated that it had completed an initial evaluation of the licensing rules imposed by the U.S. government on April 15, 2025. The regulations specifically target chip exports to China—including Hong Kong and Macau—as well as countries categorized as “D:5.”
AMD officials confirmed plans to submit license applications to comply with the government’s new policies but cautioned that receiving the necessary approvals is far from guaranteed. Without the requisite permits, the company warned it could incur the full estimated $800 million charge.
Market reaction was immediate, with AMD stock falling approximately 7% during pre-market trading following the announcement. The broader semiconductor sector is also facing headwinds from stricter U.S. export controls. Rival Nvidia similarly noted significant financial consequences, predicting charges of around $5.5 billion tied to export restrictions during its fiscal first quarter of 2026.
