Nvidia Devises a New Chip for China That Passes U.S. Export Controls
Top data center and AI chip stocks like Nvidia (NASDAQ: NVDA) took the news of expanded sales restrictions to China poorly in October. Already dealing with a falloff in consumer electronics spending, Nvidia's upward trajectory had thus far remained intact for the important data center segment. But with the U.S. looking to hobble China's semiconductor industry and in turn its military by cutting off the country from AI circuitry and advanced equipment used to manufacture them, Nvidia's marquee moneymaker was also suddenly looking shaky.
However, according to a report from Reuters, Nvidia quickly drew up plans for a new chip that passes U.S. export controls for the Chinese market. Here's what Nvidia shareholders need to know.
It was revealed back in early September that the U.S. was going to restrict Nvidia's most advanced data center computing accelerators (the new H100, as well as the previous-generation A100), as well as restrict the sale of any systems that include the H100 or A100, to China and Hong Kong. In a filing with the Securities and Exchange Commission, Nvidia said that it could lose out on $400 million in sales during its third quarter of fiscal 2023 if its customers didn't purchase an alternative product, or if the U.S. government didn't grant a special license to make a sale.
Source Fool.com
