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- AMD
Follow your favorite stocksCREATE FREE ACCOUNTLisa Su, CEO of AMD, attends the Artificial Intelligence Action Summit at the Grand Palais in Paris, Feb. 10, 2025.Benoit Tessier | Reuters
Shares of Advanced Micro Devices slid more than 5% on Wednesday after the company said it could incur charges of up to $800 million for exporting its MI308 products to China and other countries.
“The Company expects to apply for licenses but there is no assurance that licenses will be granted,” AMD said in the filing with the Securities and Exchange Commission.
The new U.S. license requirement, which applies to exports of certain semiconductor products, would hit inventory, purchase commitments and related reserves, AMD said in the filing.
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AMD is one of the companies that builds the hardware behind the artificial intelligence boom. The company claims its AMD Instinct MI300 Series accelerators are “uniquely well-suited to power even the most demanding AI and HPC workloads,” according to its website.
It generated “record” revenue of $25.8 billion in 2024, according to its February earnings release, but the new export restrictions could slow growth.
AMD one month stock chart.
Nvidia, an AMD competitor, released a similar disclosure on Tuesday. The company said it will take a quarterly charge of about $5.5 billion for exporting H20 graphics processing units.
China is Nvidia’s fourth-largest region by sales, after the U.S., Singapore and Taiwan, according to the company’s annual report. More than half of its sales went to U.S. companies in its fiscal year that ended in January.
— CNBC’s Kif Leswing and Jordan Novet contributed to this report.
Correction: AMD generated revenue of $25.8 billion in 2024. An earlier version misstated the year.
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