AMD to Resume MI308 AI Chip Exports to China as U.S. Reassesses Licenses

Advanced Micro Devices (AMD, Financials) said Tuesday it will soon restart shipments of its MI308 artificial intelligence chips to China, following word from the U.S. Commerce Department that it plans to resume reviewing the company's license applications.

The announcement sent AMD stock up more than 6%, marking a rebound after months of export uncertainty. The chipmaker had warned in April that it could face up to $800 million in charges tied to restrictions on the MI308, a chip tailored for the Chinese market under U.S. export rules.

We applaud the progress made by the Trump administration in advancing trade negotiations and its commitment to U.S. AI leadership, AMD said in a statement to CNBC.

The move comes just days after Nvidia (NVDA, Financials) announced similar plans to restart exports of its H20 chips to China, following high-level meetings between Nvidia CEO Jensen Huang and President Donald Trump. AMD CEO Lisa Su is expected to attend an AI-focused summit with Trump in Washington next week.

Both the H20 and MI308 chips were designed to meet U.S. export compliance standards while serving demand in China the world's second-largest economy and a vital end-market for AI infrastructure.

Earlier this year, the Trump administration rolled back the AI diffusion rule implemented under President Joe Biden, promising to simplify chip export regulations. A formal replacement policy has yet to be announced, but the shift in tone has been welcomed by the semiconductor industry.

Chipmakers had previously flagged billions in lost revenue due to the restrictions. Nvidia alone estimated a $2.5 billion hit in a single quarter and projected $5.5 billion in total exposure linked to the H20 ban.

With both companies now signaling a return to the Chinese market and Washington seemingly easing its stance investor sentiment around U.S. chipmakers could see a broader lift ahead of Q2 earnings.