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Nvidia’s A100 chips are used in data centers for high-performance applications such as artificial intelligence.
Courtesy of NVIDIA
Nvidia
i can’t rest
Late on Wednesday, the chip maker it says in a filing The US government has informed the company that it has imposed a new licensing requirement, effective immediately, covering any export of Nvidia’s A100 and upcoming H100 products to China, including Hong Kong and Russia.
Nvidia’s A100s are used in data centers for artificial intelligence, data analytics and high-performance computing applications, according to the company’s website.
The government “states that the new license requirement will address the risk of covered products being used or diverted to a ‘military end use’ or ‘military end user’ in China and Russia,” the filing said.
Nvidia
(ticker:
NVDA
) shares fell 3.9% to $145 in after-hours trading.
Nvidia said it does not sell any products in Russia, but noted that its current outlook for the fiscal third quarter includes about $400 million in potential sales in China that could be affected by the new license requirement. The company also said the new restrictions could affect its ability to develop its H100 product on time and could potentially force it to move some operations out of China.
An Nvidia spokesperson said Barron’s in an email: “We are working with our customers in China to satisfy their planned or future purchases with alternative products and may request licenses when replacement is not sufficient. The only current products subject to the new license requirement are the A100, H100 and systems such as the DGX that incorporate them.”
The latest development comes after a string of weak financial results from Nvidia. Last week the company gave income the forecast for the October quarter was significantly below expectations, citing a difficult macroeconomic environment and a rapid slowdown in demand.
last friday, Baron said more trouble lies ahead for the chip maker, and that investors looking for a quick turnaround may be disappointed.
Shares of Nvidia are down about 49% this year, down from a 32% decline last year
iShares Semiconductor ETF
(SOXX), which tracks the performance of the ICE Semiconductor Index.
Write to Tae Kim at [email protected]