Lisa Su, AMD’s chief executive, confirmed that China represents roughly 20% of the company’s total revenue. That’s a massive chunk of business to maintain while the US government keeps tightening the screws on chip exports.

Su characterized China as a “very important market” for AMD, emphasizing that the company continues working closely with Chinese customers. The revenue comes primarily from AMD’s PC, gaming, and certain data center divisions, segments where export restrictions haven’t completely shut the door.

The export control maze

Here’s the thing about selling chips to China right now: it’s less of a straightforward business relationship and more of a regulatory obstacle course.

The US government introduced new case-by-case licensing reviews for certain AMD chips starting in January 2026. The MI325X, one of AMD’s advanced AI accelerators, now requires individual approval before it can ship to Chinese buyers. That’s the bureaucratic equivalent of needing a hall pass every time you want to walk to class.

In English: AMD can’t just freely sell its most powerful AI chips to China anymore. Each sale of restricted products needs a government green light, and there’s no guarantee that light turns green.

But it’s not a total lockout. AMD resumed limited sales of chips like the MI308 under a conditions-based arrangement announced in August 2025. The catch? AMD has to share a portion of revenue from those sales with the US government. Think of it as a toll booth on the road to China’s AI market.

This layered approach, some chips banned outright, some requiring case-by-case review, some allowed with revenue sharing, creates a patchwork of rules that AMD has to navigate deal by deal.

The shrinking but still significant China business

The 20% figure actually represents a decline from AMD’s historical exposure. In 2024, China accounted for approximately 24% of AMD’s revenue, equating to roughly $6.2B. That drop of about four percentage points signals that export restrictions are already biting into the business, even as AMD tries to maintain relationships.

Su’s framing was notably diplomatic. She didn’t complain about the restrictions or downplay their impact. Instead, she focused on AMD’s ability to continue serving Chinese customers within the bounds of US policy. It’s the kind of careful language you’d expect from a CEO managing a geopolitical tightrope.

The revenue that AMD does generate from China increasingly comes from non-restricted product categories. PC processors, gaming chips, and lower-tier data center products don’t face the same export hurdles as cutting-edge AI accelerators. AMD appears to be leaning into these segments to maintain its China presence without running afoul of Washington.

What this means for investors

For anyone holding AMD stock or considering a position, the China situation is a double-edged sword that cuts in both directions depending on which way Washington leans.

On one side, 20% of revenue is still enormous exposure to a single geopolitical risk. If restrictions tighten further, and recent history suggests that’s the default trajectory, AMD could see that percentage shrink even more. Every new export rule effectively hands market share to domestic Chinese chip companies that don’t face the same constraints.

On the other side, any easing of restrictions could act as a significant growth catalyst. China’s appetite for AI and data center hardware is massive, and AMD’s products are competitive. If the political winds shift, even slightly, AMD is well-positioned to capture demand that’s currently bottled up behind licensing requirements.

Analysts have pointed to AMD’s strategic focus on non-restricted products as a potential buffer against the worst-case scenario. By maintaining customer relationships through PC and gaming chip sales, AMD keeps its distribution channels warm and its brand presence intact. If and when restrictions loosen, the company won’t have to rebuild those relationships from scratch.

The competitive landscape matters here too. Nvidia faces similar, and in some cases more severe, export restrictions on its AI GPUs. But the playing field isn’t level. Different chips fall under different restriction tiers, and the specific arrangements each company negotiates with the US government create an uneven set of competitive advantages. AMD’s MI308 revenue-sharing deal, for instance, represents a model that competitors may or may not be able to replicate.

The broader risk for AMD investors isn’t just about China in isolation. It’s about what the China restrictions signal for the global chip industry’s relationship with government policy. Semiconductors have become a national security issue, and that means chip companies are now, whether they like it or not, operating in a space where geopolitics can override market dynamics overnight. AMD’s 20% China revenue is a number worth watching closely, because the direction it moves will tell you a lot about where the entire industry is headed.