The chip designer company Nvidia is abiding by the new rules of the United States, regarding the cessation of the sale of its Artificial Intelligence chips to China, which is causing a fall in its shares, and therefore in its sales.
Shares fell as much as 5.1% in extended trading on the revelation that Nvidia’s A100 and upcoming H100 products will require US government approval before they can be sold to Chinese customers.
This adds to the drop in sales that the company has had, caused by lower demand for personal computers. However, if the company doesn’t get permission to sell the chips in China, sales could be hit by $400 million, Nivida told That represents about 6.8% of revenue in the fiscal third quarter.
Why is the US banning Nvidia from selling chips to China?
According to the technology company, the US is concerned that these processors could be used by the military.
“We are working with our customers in China to meet their planned or future purchases with alternative products and may seek licenses when replacements are not enough,” the company said in a statement emailed to Bloomberg. “The only current products that the new license requirement applies to are A100, H100 and systems like DGX that include them.”
The announcement marks a major escalation of the US offensive against China’s technological capabilities, at a time when tensions are heightened over the fate of Taiwan, where chips for Nvidia and almost every other major company are made. chip.
In addition to Nvidia’s shares, rival AMD also reported a 3% loss at market opening.
