US tech giant AMD is on the brink of reviving AI GPU exports to China, mirroring Nvidia's move to capitalize on relaxed US-China chip export regulations.
**AMD and Nvidia Prepare for Market Resurgence in China Following Eased Export Restrictions**
In a significant development, both AMD and Nvidia are set to re-enter the Chinese market after the U.S. Commerce Department indicated it would review license applications for the export of high-powered AI chips. This move comes as part of a new trade agreement between the U.S. and China, focusing on rare earth metals and magnets.
AMD has submitted a license application to export its MI308 AI chips to China, a decision that follows the company's announcement that it would incur up to $800 million in charges due to previous export restrictions. The resumption of these shipments is expected to boost AMD's stock and help mitigate the financial impact of these restrictions.
Nvidia, on the other hand, has been dealing with an estimated $5.5 billion in projected losses due to restrictions on its H20 chips. The easing of export controls could help Nvidia regain lost ground in the Chinese market, similar to AMD's potential recovery.
The resumption of MI308 and H20 chip exports is likely to significantly impact the AI GPU market share between AMD and Nvidia. The market dynamics could shift as both companies have developed AI chips specifically to comply with U.S. export regulations while meeting Chinese demand. This could lead to increased competition in the Chinese market, potentially altering the market share dynamics between the two companies.
According to recent reports, Nvidia holds a significant portion of the AI GPU market share, up to 92%. However, AMD's earlier announcement of potential charges and now resuming exports might slightly shift the competitive balance in favor of AMD in the short term.
The MI308 chip, developed specifically to comply with earlier export controls, has been well-received, with AMD's Instinct MI300 Series AI accelerators receiving positive reviews. On the other hand, Nvidia's GeForce RTX 5090 is the best high-end gaming GPU, while the AMD Radeon RX 9060 XT 16 GB offers the best value for money in gaming GPUs. The AMD Radeon RX 9070 is the best overall gaming GPU, according to PC Gamer.
Andy Edser, a hardware writer for PC Gamer, has extensive experience in building and reviewing gaming PC hardware. He attends product launches and trade shows worldwide, providing opinions on interesting hardware along with his reviews. His work has earned him a reputation for being meticulous in his reviews, having built his first gaming PC at the age of 12.
In summary, the resumption of MI308 and H20 chip exports will likely intensify competition in China's AI GPU market, though the exact impact on their market shares will depend on several factors, including execution speed, product demand, and future regulatory changes. This development represents an opportunity for AMD to make headway in a market that was otherwise inaccessible, potentially leading to a broader lift in the stock values of U.S. chipmakers ahead of quarterly earnings reports.
In the context of the easing of export restrictions, AMD and Nvidia are preparing to re-enter the Chinese market with renewed focus, viewing it as a strategic opportunity for recovery and growth. AMD's MI308 AI chips, designed to comply with prior export regulations while catering to Chinese demand, may potentially win back market share previously lost. On the cards, financial businesses and tech enthusiasts might find themselves placing a bet on AMD as the resumption of these shipments could help the company recover from the estimated $800 million in charges incurred due to previous export restrictions.
The race is on, as Nvidia, facing estimated $5.5 billion in projected losses due to restrictions on its H20 chips, aims to regain lost ground in the Chinese market, similar to AMD's potential recovery. In the realm of AI GPU market share, the resumption of MI308 and H20 chip exports could significantly impact the competitive balance between AMD and Nvidia. With both companies developing AI chips specifically to address U.S. export regulations and cater to the demands of the Chinese market, the resulting race could lead to increased competition, potentially altering the market share dynamics between the two companies.
Although Nvidia currently holds a significant portion (up to 92%) of the AI GPU market share, AMD's resurgence in the Chinese market might slightly shift the competitive balance in AMD's favor in the short term. Strategic business players and tech-savvy individuals interested in this AI GPU market may find themselves placing a win-win bet on both AMD and Nvidia as they navigate the rapidly changing tech landscape of China's market, with the future of their competition heavily influenced by product demand, execution speed, and regulatory changes.
