Advanced Micro Devices expects charges of up to US$800 million due to the latest curbs by the Trump administration on exports of advanced processors to China, the company said on Wednesday.
Larger rival Nvidia said on Tuesday it would take US$5.5 billion in charges as the export restrictions further shackle chipmakers' ability to service one of their largest markets, at a time when tit-for-tat tariffs have clouded the outlook for the sector.
Shares of both AMD and Nvidia slumped more than 5 per cent as the restrictions battered global tech stocks.
AMD confirmed on Wednesday that the export control applies to its MI308 products.
A US Commerce Department spokesperson said that it was issuing new licensing requirements for exports of chips including Nvidia's H20, AMD's MI308 and their equivalents.
China was AMD's second-largest market in 2024, generating about US$6.23 billion in revenue and accounting for more than 24 per cent of total sales.
The US$800 million charges relate to inventory, purchase commitments and reserves, AMD said in a filing.
AMD "expects to apply for licenses but there is no assurance that licenses will be granted," it said.
No licenses for graphics processor unit shipments into China have ever been granted by the US, Jefferies analysts said in a note on Tuesday.
-1.jpg&w=100&c=1&s=0)
.png&w=100&c=1&s=0)
