AMD Shares Surge 7% on Resumption of MI308 Chip Shipments to China

AMD shares surge 7% after receiving US government approval to resume shipments of MI308 chips to China. The company's spokesperson confirmed the news to Bloomberg, marking a positive development for the California-based chipmaker. The approval is expected to boost AMD's sales in the Chinese market.

Advanced Micro Devices (AMD) saw a significant boost in its stock price today, with shares rising by 7% after receiving approval from the U.S. government to resume shipments of its MI308 chips to China. The company's spokesperson confirmed the news to Bloomberg, marking a positive development for the California-based chipmaker.

The approval is expected to boost AMD's sales in the Chinese market, where the MI308 chips are in high demand. The decision comes as relations between the U.S. and China continue to improve, with both nations showing a willingness to approve exports of crucial technologies. This shift in policy represents a reversal for the Trump administration, which previously insisted that restrictions on chip sales to China were not negotiable.

AMD's MI308 chips are used in a variety of applications, including artificial intelligence (AI) and data centers. The company had earlier stated that export restrictions on the MI308 chips could cost it up to $800 million. The approval to resume shipments is expected to mitigate this financial impact and open up new opportunities for the company.

The approval of MI308 chip shipments to China follows a similar decision by the U.S. government to allow Nvidia to resume sales of its H20 AI chip to the country. Nvidia's Chief Executive Officer, Jensen Huang, met with President Donald Trump last week and is currently in Beijing attending a government-sponsored conference. The approval of Nvidia's H20 chip is expected to add billions to the company's revenue this year.

The U.S. Commerce Department has informed AMD that license applications for the MI308 products would move forward for review. The approval of the MI308 chip shipments is a result of the thawing ties between the U.S. and China, with both nations showing a willingness to cooperate on key technologies.

The approval of MI308 chip shipments to China is expected to have a positive impact on AMD's stock price and financial performance. The company's shares rose as much as 8.5% after markets opened in New York, reflecting investor optimism about the company's prospects in the Chinese market.

The approval of MI308 chip shipments to China is a significant development for the semiconductor industry, with both AMD and Nvidia set to benefit from the resumption of sales to the country. The approval of the MI308 chip shipments is expected to open up new opportunities for the company and contribute to its growth in the coming years.

References:
[1] https://m.economictimes.com/tech/technology/amd-says-it-will-restart-mi308-sales-to-china-after-us-review/articleshow/122509021.cms
[2] https://seekingalpha.com/news/4467527-amd-stock-climbs-over-7-following-sale-of-mi308-chips-set-to-resume-in-china
[3] https://finance.yahoo.com/news/nvidia-resume-h20-ai-chip-064336947.html