AMD Faces Significant Export Challenges

Advanced Micro Devices Inc. (AMD) experienced a sharp decline in its stock price, dropping 5.79% following a warning in a recent SEC filing. The company anticipates potential charges up to $800 million due to new U.S. export controls affecting its MI308 semiconductor products. These restrictions impact sales to China, including Hong Kong and Macau, as well as D:5 countries.

License Applications and Uncertain Outcomes

AMD has stated its intention to apply for licenses to mitigate the impact of these controls. However, the company has openly acknowledged that there is no guarantee these applications will be approved, adding a layer of uncertainty to its financial outlook.

Industry-Wide Concerns Grow

This development amplifies existing worries within the chip sector, already grappling with the implications of new tariffs. Nvidia, another major player, has previously estimated a $5.5 billion sales loss from similar restrictions targeting AI chips, such as the H20. The U.S. government defends these measures as necessary for national security, while tech giants continue to voice concerns over the escalating U.S.-China tech tensions.

Market Reaction: AMD's stock fell to $89.775 per share at 9:44 am ET, marking a significant 5.79% drop shortly after the market opened.