Advanced Micro Devices (AMD) announced on Tuesday that it would resume shipments of its MI308 artificial intelligence (AI) chips to China, after the US Commerce Department said that it would resume reviewing MI308 licenses,

Beijing’s rare earth curbs turned chips into leverage – paving the way for concessions that could reset ties, analysts say.

Advanced Micro Devices Inc. (AMD) is reportedly set to restart shipments of its MI308 AI processors to China, following a provisional green light from U.S. regulators, a move that signals a notable change in approach to high-tech trade with Beijing.

China has leveraged its dominance over rare earths for Nvidia chips; however, this expert says world isn't decoupling, it is just bartering.

The US has cleared AMD and Nvidia to resume sales of AI chips to China, marking a major shift in tech trade policy. The move signals a softening stance on export controls and could ease tensions between Washington and Beijing amid rising demand for AI semiconductors.

While there's still significant risk on the geopolitical front, allowing the sale of capable AI processors to China suggests the potential for a significant improvement in U.S. trade relations. If so, AMD stock could continue to see bullish business-specific catalysts in addition to valuation tailwinds for the broader market.