diff --git a/drivers/gpu/drm/amd/pm/powerplay/hwmgr/smu7_hwmgr.c b/drivers/gpu/drm/amd/pm/powerplay/hwmgr/smu7_hwmgr.c
index 95bf187f02a5..bc82ba2e4c9b 100644
--- a/drivers/gpu/drm/amd/pm/powerplay/hwmgr/smu7_hwmgr.c
+++ b/drivers/gpu/drm/amd/pm/powerplay/hwmgr/smu7_hwmgr.c
@@ -5857,15 +5857,19 @@ static int smu7_power_off_asic(struct pp_hwmgr *hwmgr)
 static void smu7_notify_ac_dc(struct pp_hwmgr *hwmgr)
 {
 	struct amdgpu_device *adev = (struct amdgpu_device *)(hwmgr->adev);
+	const struct amd_pm_funcs *pp_funcs = adev->powerplay.pp_funcs;
 
-	/* Check if the platform already manages the AC/DC switch via dedicated GPIO. */
-	if (phm_cap_enabled(hwmgr->platform_descriptor.platformCaps,
+	/*
+	 * Check if the platform already manages the AC/DC switch via dedicated GPIO.
+	 * Otherwise SMU automatically notices DC, but needs to be notified of AC.
+	 */
+	if (adev->pm.ac_power &&
+	    phm_cap_enabled(hwmgr->platform_descriptor.platformCaps,
 			    PHM_PlatformCaps_AutomaticDCTransition))
-		return;
-
-	/* The SMU automatically notices DC, but needs to be notified when switching to AC. */
-	if (adev->pm.ac_power)
 		smum_send_msg_to_smc(hwmgr, PPSMC_MSG_RunningOnAC, NULL);
+
+	/* Recompute clocks with updated max_limits. */
+	pp_funcs->pm_compute_clocks(adev->powerplay.pp_handle);
 }
 
 static const struct pp_hwmgr_func smu7_hwmgr_funcs = {