Advanced Micro Devices (AMD) has announced that it anticipates charges of up to $800 million as a direct consequence of the most recent export restrictions imposed by the Trump administration on the sale of advanced processors to China. This disclosure follows a similar announcement from its larger competitor, Nvidia, which stated on Tuesday that it expects to incur charges of $5.5 billion due to the tightened export regulations.

The escalating restrictions are further hindering chipmakers' ability to serve one of their most significant markets at a time when existing trade tensions and tariffs have already cast a shadow over the sector's growth prospects. The news of these expected financial impacts sent the shares of both AMD and Nvidia tumbling by over 5%, contributing to a broader decline in global technology stocks on Wednesday.

AMD confirmed that the updated export controls specifically apply to its MI308 line of products. A spokesperson for the U.S. Commerce Department clarified late on Tuesday that the administration is implementing new licensing requirements for the export of several advanced chips, including Nvidia’s H20, AMD’s MI308, and their equivalents.

China represented a substantial portion of AMD's revenue in 2024, standing as its second-largest market and generating approximately $6.23 billion, which accounted for over 24% of the company's total sales for the year.

In a regulatory filing, AMD stated that the anticipated $800 million in charges are related to inventory valuation, existing purchase commitments, and associated reserves. The company also indicated its intention to apply for the necessary export licenses but acknowledged that "there is no assurance that licenses will be granted."

Adding to the uncertainty, analysts at Jefferies noted on Tuesday that the U.S. government has historically not granted any licenses for the shipment of graphics processing units (GPUs) into China. This precedent suggests a potentially challenging path for AMD in securing the required permissions.

The move by the Trump administration represents the latest effort to restrict China's access to advanced semiconductor technology, driven by national security concerns and the desire to maintain U.S. leadership in this critical sector. However, these restrictions are also creating significant financial headwinds for American chipmakers who rely heavily on the Chinese market for a substantial portion of their revenue. The long-term implications for the global semiconductor industry and the ongoing trade dynamics between the U.S. and China remain a key area of observation.