Nvidia Corp.’s HGX H100 artificial intelligence supercomputing graphics processing unit (GPU) is seen in a showroom at the company’s office in Taipei, Taiwan, Friday, June 2, 2023.
Zheng Yihua | Bloomberg | Getty Images
wall street journal report Late Tuesday, the United States was considering new restrictions on exports of artificial intelligence chips to China, which could affect Nvidia, the market leader in the graphics processors needed to build artificial intelligence software such as ChatGPT.
Nvidia CFO Colette Kress downplays impact of potential export curbs at a financial conference The restrictions would not have an “immediate financial impact,” it said on Wednesday, but further restrictions could hurt the company’s future growth.
Nvidia shares started to recover on Kress’ comments before falling about 1.8 percent in intraday trading. So far in 2023, Nvidia stock has risen more than 179%.
“We are aware of reports that the U.S. Department of Commerce is considering further controls that could restrict exports of the A800 and our H800 products to China,” Kress said of the company’s chips. “However, given our strong global demand for our products, we do not expect such additional restrictions, if adopted, to have an immediate material impact on our financial results.”
Kress said China accounted for 20% to 25% of the company’s data center revenue, which totaled $4.28 billion in the first quarter. That includes other chips, not just those used for artificial intelligence, including networking components.
Kress said Nvidia’s growth prospects could suffer.
“In the long run, the restrictions banning the sale of our data center products to China, if implemented, would cause us to permanently lose the opportunity for the US industry to compete and lead in one of the world’s largest markets. The impact on our future business and financial performance There it is,” Kress continued.
Nvidia is a leader in the parts needed to build advanced artificial intelligence systems, and AI engineers are salivating over the company’s A100 and new H100 chips.The U.S. government has been working to limit China’s access to the company’s technology to prevent people and companies in the region from catching up to the U.S.
Nvidia previously launched the A800 and H800 chips, and tweaked and slowed down the hardware to comply with U.S. export controls. But the Commerce Department’s new restrictions could even limit exports of those chips, according to the Wall Street Journal.
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