Advanced Micro Devices Inc.'s (NASDAQ:AMD) Lisa Su said the company is making progress with U.S. regulators on AI chip export licenses to China and is preparing for eventual shipments of its MI308 GPUs.
Progress With US Regulators On China AI Chip Licenses
During AMD’s second-quarter earnings call, Su addressed concerns over the company’s business in China, stating that AMD has been working closely with the Donald Trump administration to secure licenses for its MI308 AI chips.
“We're very pleased with the progress that's been made with the administration over the last couple of months,” Su said. “This is a better position than we were 90 days ago.”
Su added that while AMD has not yet received export licenses for the MI308 chips, several applications are under review by the U.S. Department of Commerce.
These licenses are required due to the ongoing U.S. export restrictions on advanced AI hardware to China.
China Remains A Strategic Market Amid Export Restrictions
Su said that China continues to be an important market for AMD, despite the geopolitical challenges. She expressed support for the global use of U.S. technology, stating that the company is committed to contributing to that effort.
The U.S. government has tightened export controls on AI hardware over concerns about China's military modernization. The MI308, one of AMD's advanced data center chips, falls under those restrictions.
MI308 Inventory Largely In Process, Not Finished Goods
While awaiting licenses, AMD has been holding inventory related to the MI308, but Su noted that most of it is still in the production phase.
“In terms of the supply chain, most of our inventory was not in finished goods. So it was work in process and it'll take us a couple of quarters to run through that,” she stated.
The timeline for revenue contribution from the MI308 depends on when export approvals are granted.
AMD Eyes Rebound In China Strategy As AI Demand Grows
Su's comments suggest AMD is positioning itself to re-enter the Chinese AI market as soon as regulations allow. “China is an important market for us. Given the timing of licenses, we have a number of licenses that are under review now.”
AMD posted second-quarter revenue of $7.69 billion, surpassing the $7.41 billion forecast by analysts. However, its adjusted earnings came in at 48 cents per share, slightly below the expected 49 cents.
AMD projects third-quarter revenue to be around $8.7 billion, give or take $300 million. In comparison, analysts are estimating revenue of roughly $8.15 billion.
Price Action: AMD shares have risen approximately 44.50% year-to-date. However, as of the latest check on Wednesday, the stock was down 4.37% in pre-market trading, trading at $166.70, according to Benzinga Pro.
Benzinga's Edge Stock Rankings show that AMD continues to demonstrate strong upward momentum across short, medium and long-term timeframes. More performance insights are available here.
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