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AMD expects $800M charge due to US’s license requirement for AI chips

AMD expects $800M charge due to US’s license requirement for AI chips

image via TechCrunch

April 16, 2025, 1:09 PM

  • AMD says the U.S. government’s license control requirement for exporting AI chips to China and certain other countries may have a material impact on its earnings.
  • If AMD doesn’t successfully obtain a license, the company could be on the hook for roughly $800 million in inventory, purchase commitments, and related reserves charges.
  • The U.S.’s newly imposed export controls impact a number of chipmakers, including AMD’s chief rival Nvidia.

AMD says the U.S. government's license control requirement for exporting AI chips to China and certain other countries may have a material impact on its earnings. If AMD doesn't successfully obtain a license, the company could be on the hook for roughly $800 million in inventory, purchase commitments, and related reserves charges.

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Entities Mentioned

AMDU.S.ChinaNvidia

Topics Covered

AIEnterpriseGovernment & Policyamd

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