Nvidia shares fall as it reportedly delays China AI chip designed to comply with U.S. export rules

Technology

In this article

Jensen Huang, president of Nvidia, holding the Grace hopper superchip CPU used for generative AI at the Supermicro keynote presentation during Computex 2023.
Walid Berrazeg | Lightrocket | Getty Images

Nvidia shares fell on Friday with the company reportedly delaying a new artificial intelligence chip for China that has been designed to comply with U.S. export restrictions.

Nvidia shares were down around 2.4% in pre-market trade, on what will be a shortened trading day in the U.S.

It comes after Reuters, citing two sources familiar with the matter, reported that Nvidia told Chinese customers that it is delaying the launch of an AI chip that is designed to comply with U.S. export rules until the first quarter of next year.

The new chip, called the H20, was being delayed due to issues server manufacturers were having integrating the semiconductor into their products, Reuters reported.

Nvidia was not immediately available for comment when contacted by CNBC.

In October, the U.S. government further tightened export curbs on AI chips to China. Those rules restricted export of Nvidia’s A800 and H800 chips. These semiconductors were also specifically designed for China.

As well as the H20, Nvidia is also gearing up to launch two other export-compliant chips called the L20 and L2, Reuters reported.

The delay to the H20 could be a setback for Nvidia which makes around a fifth of its revenue from China and is facing competition from local players such as Huawei.

Even as Nvidia reported this week that it tripled its revenue in the September quarter, the company warned sales in regions affected by export restrictions will “decline significantly” in the current quarter.

Products You May Like

Articles You May Like

Ancient Bronze Age Settlement Discovered in Caucasus Mountains Using Drone Mapping
Here are the best electric bikes you can buy at every price level in January 2025
European wind stocks tumble after Trump says he will stop new turbine construction
Several commodities face headwinds in 2025 — but this metal’s record rally is set to continue
Proportion of 25-34 year-olds at ‘hotel of mum and dad’ up a third since 2006

Leave a Reply

Your email address will not be published. Required fields are marked *