After NVIDIA, AMD to resume its chip sales to China
What's the story
Advanced Micro Devices (AMD) has announced its plan to resume shipments of MI308 chips to China. The decision comes after the US government gave its nod, following a similar move for NVIDIA. The US Commerce Department has said it will review AMD's license applications for these products. The earlier ban on MI308 chips was estimated to cost AMD around $800 million in losses.
Policy change
Major shift in government stance
The US government's decision to allow MI308 chips back into China marks a major shift from the US administration's previous stance. Under President Donald Trump, restrictions on chip sales to China were strictly enforced. Now, this latest development comes amid weeks of thawing ties between the two countries, and NVIDIA CEO Jensen Huang's meeting with Trump.
Approval impact
Approval comes as a relief
Along with AMD, NVIDIA has also got the green light from the US government to ship its H20 AI chip to China. This decision could significantly boost NVIDIA's revenue this year. The approval comes as a relief for both tech giants, as AMD was facing significant projected losses due to export restrictions, and NVIDIA stands to significantly boost its revenue with the new approval.
Market reaction
AMD's stock jumped by 5%
The news of the US government's approval has had a positive impact on AMD's stock. The company's shares jumped by 5% in premarket trading today. This comes after a strong performance this year, with the stock gaining 21% so far. The MI308 chips are high-performance processors used in data centers and AI applications, making this approval even more significant for AMD's future prospects in these sectors.