Nvidia headquarters in Santa Clara, California, on Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images
Nvidia shares fell 4% in prolonged buying and selling on Wednesday after the corporate mentioned the U.S. authorities is limiting gross sales in China.
In a submitting with the SEC, Nvidia mentioned the U.S. authorities advised the corporate on Aug. 26, a couple of new license requirement for future exports to China, together with Hong Kong, to scale back the danger that the merchandise could also be utilized by the Chinese army.
Nvidia mentioned the restriction would have an effect on the A100 and H100 merchandise, that are graphics processing models bought to companies.
“The license requirement also includes any future Nvidia integrated circuit achieving both peak performance and chip-to-chip I/O performance equal to or greater than thresholds that are roughly equivalent to the A100, as well as any system that includes those circuits,” the submitting mentioned.
The firm expects that it may lose $400 million in potential gross sales in China within the present quarter after beforehand forecasting income of $5.9 billion. The new rule additionally applies to gross sales to Russia, however Nvidia mentioned it would not have paying clients there.
In current years, the U.S. authorities has utilized rising export restrictions to chips made with U.S. know-how due to fears that Chinese corporations may use them for army functions or steal commerce secrets and techniques.
Nvidia mentioned it was making use of for a license to proceed some Chinese exports however would not know whether or not the U.S. authorities will grant an exemption.
“We are working with our customers in China to satisfy their planned or future purchases with alternative products and may seek licenses where replacements aren’t sufficient,” an Nvidia spokesperson advised CNBC. “The only current products that the new licensing requirement applies to are A100, H100 and systems such as DGX that include them.”
WATCH: Semiconductor market signaling a surplus
Source: www.cnbc.com”