AMD Faces Significant Export Challenges

Advanced Micro Devices Inc. (AMD) experienced a sharp decline in its stock value, dropping 5.79% after disclosing potential charges up to $800 million due to new U.S. export controls. These restrictions specifically target AMD's MI308 semiconductor products, limiting sales to China, including Hong Kong and Macau, as well as D:5 countries.

Licensing Uncertainty Adds to Concerns

While AMD plans to apply for licenses to mitigate these restrictions, the company has openly admitted that approval is not guaranteed. This development has escalated worries within the chip sector, already under pressure from ongoing tariff implementations.

Broader Impact on the Tech Industry

The U.S. government's measures, justified on national security grounds, have not only affected AMD but also other tech giants like Nvidia, which previously estimated a $5.5 billion sales loss from similar export restrictions on AI chips. The deepening U.S.-China tech tensions continue to pose significant challenges for major technology firms.

By 9:44 am ET, AMD's stock had fallen to $89.775 per share, marking a significant downturn shortly after the market opened.