AMD’s MI308 Chip Sales to China Approved, Stock Soars

Snack-Sized Version:

AMD’s stock skyrocketed over 7% after the US approved resuming MI308 chip shipments to China. The US Commerce Department confirmed AMD’s license applications for MI308 chips will move forward. This reverses a previous administration’s stricter stance on chip exports. Meanwhile, Nvidia also plans to resume selling its H20 chips to China after similar government reassurances. AMD had earlier warned new export rules could cost up to $800M, but the policy shift avoids that hit. Improving US-China relations influenced this change, with key meetings happening between leaders and tech executives. The approval signals a warming climate for AI chip exports amid global supply chain diplomacy. AMD and Nvidia now eye China’s lucrative AI market with renewed optimism — proving even chips can melt icy relations.

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AMD shares surged over 7% after the United States approved its resumption of MI308 chip sales to China. The move comes after months of uncertainty triggered by tighter export controls and fresh licensing requirements announced earlier this year. AMD previously warned these restrictions could cost the company up to $800 million in lost sales, but the green light now clears the path to regain momentum in the lucrative Chinese AI chip market.

The US Commerce Department notified AMD that its license applications for MI308 chips would advance for review, signaling a softer tone in export policy. This decision represents a reversal of prior efforts to further tighten Biden-era chip restrictions under the Trump administration, which had declared such sales to China as non-negotiable. The shift follows a recent meeting between former President Trump and Nvidia CEO Jensen Huang, who is also engaging with senior Chinese officials in Beijing this week. These high-level talks appear to be thawing tensions between the world’s two largest economies.

Nvidia also announced plans to resume shipments of its H20 AI chips to China, citing the same government assurances that export licenses will be granted. The parallel approvals for AMD and Nvidia suggest a coordinated strategy to balance national security concerns with economic and diplomatic interests, especially as both companies play key roles in the global AI arms race. China remains a critical market for advanced chips despite political and trade headwinds.

This policy pivot underscores how economic pragmatism is creeping back into US-China tech relations. The approval not only spares AMD a potentially massive financial blow but also positions it to capitalize on growing AI demand in China. Nvidia and AMD now seem poised to regain their footholds in a market too big to ignore, proving that even in geopolitics, a little silicon can smooth things over.