After Nvidia, AMD Flags $800 Million Hit From Trump's Restrictions On Chip Exports To China

Advanced Micro Devices Inc. (AMD) on Wednesday flagged a potential hit of $800 million after the Trump administration expanded restrictions on chip exports to China and other countries.

AMD’s stock was down more than 7% at the time of this writing, and the tech-heavy Nasdaq 100 index declined over 2%.

“The company expects to apply for licenses, but there is no assurance that licenses will be granted,” AMD said in its SEC filing.

The chip designer added that the U.S. government’s new licensing requirements would impact its inventories, purchase commitments, and reserves.

The Trump administration announced that the new licensing requirements would apply to the export of certain semiconductor products to China (including Hong Kong and Macau) and D5 countries.

D5 countries are subject to an ongoing U.S. arms embargo and other export restrictions.

AMD confirmed that these new licensing requirements apply to its MI308 chips.

Nvidia Corp.’s (NVDA) H20 chips are also impacted, and the Jensen Huang-led company disclosed a $5.5 billion charge on Tuesday.

This comes during an ongoing trade war between the U.S. and China. After the Trump administration imposed reciprocal tariffs on Chinese goods imported into the U.S., the Xi Jinping administration announced retaliatory tariffs.

The latest levies stand at 245% on Chinese goods and 125% on U.S. goods.

Last week, state-backed China Semiconductor Industry Association (CSIA) announced that U.S. chipmakers who outsource chip manufacturing to fabrication facilities in non-U.S. countries would be exempt from its retaliatory tariffs on U.S. goods.

Amid the evolving policies, the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, edged lower by nearly 1.3% on Wednesday.

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