Where Will Nvidia Be in 5 Years?
The bad news just doesn't seem to be stopping for Nvidia (NASDAQ: NVDA). The graphics cards specialist received another big blow last week after the U.S. government imposed restrictions on sales of data center chips to China, Hong Kong, and Russia.
According to a filing with the SEC, Nvidia reported that the U.S. government has "imposed a new license requirement, effective immediately, for any future export to China (including Hong Kong) and Russia of the Company's A100 and forthcoming H100 integrated circuits." The restrictions will also apply to future Nvidia products that match or exceed the performance of its A100 chips, as well as systems powered by such chips.
Nvidia stock cratered on the news, as China is reportedly a big market for the company. The tech giant slashed its fiscal third-quarter revenue guidance by $400 million thanks to the restrictions. The company was anticipating $5.9 billion in revenue in the current quarter, pointing toward a big drop over the prior-year period thanks to the weakness in the gaming segment.
Source Fool.com
