Advanced Micro Devices (AMD.US) will restart shipments of its MI308 chips to China following U.S. government approval, marking a significant reversal in Washington's semiconductor export policy. This development comes weeks after the Trump administration had firmly rejected any relaxation of chip-sales restrictions to China.

The Commerce Department has notified AMD that its export license application for MI308 products will now undergo formal review, a company spokesperson confirmed Tuesday. This policy pivot coincides with recent diplomatic thawing between Washington and Beijing, highlighted by Nvidia CEO Jensen Huang's meeting with former President Trump last week.

AMD had previously warned in April that export curbs on MI308 chips could slash approximately $800 million from its revenue. In a parallel development, Nvidia recently secured authorization to export its H20 artificial intelligence chips to China—a decision projected to generate billions in additional revenue this year.

Investors reacted positively to AMD's announcement, driving shares up 5% in pre-market trading Tuesday. The stock had closed at $146.24 Monday, representing a 21% year-to-date gain.