wall street journal report It was announced Tuesday night that the US is considering new restrictions on the export of artificial intelligence chips to China, affecting NVIDIA, a market leader in the graphics processors needed to build AI software like ChatGPT. may give
Nvidia CFO Collette Kress downplayed the impact of potential export restrictions at a financial conference It said on Wednesday that there would be no “immediate financial impact” but further restrictions could adversely affect the company’s future growth.
Nvidia’s stock began to recover following Kress’ comments, but ultimately fell about 1.8% on Wednesday. The company’s stock has risen more than 179% to date in 2023.
Referring to the company’s chips, Kress said, “We are aware of reports that the U.S. Department of Commerce is considering further regulations that may limit the export of A800 and our H800 products to China.” rice field. “However, given the strength of global demand for our products, we do not expect any such additional restrictions, if adopted, to have an immediate material impact on our financial results.”
Kress said China accounts for 20% to 25% of the company’s data center revenue, which totaled $4.28 billion in the first quarter. This includes not only chips used for AI, but also other chips such as networking components.
Kress said Nvidia’s growth prospects could be affected.
“Long-term, the implementation of regulations banning the sale of our data center products to China will permanently jeopardize the opportunity for the U.S. industry to compete and lead in one of the world’s largest markets. Our future business and financial results are there,” Kress continued.
Nvidia is the leader in the parts needed to build advanced AI systems, and AI engineers covet the company’s A100 and new H100 chips. The US government is working to limit China’s access to the company’s technology to prevent people and businesses in the region from catching up.
Nvidia had previously introduced A800 and H800 chips with slowed down hardware tuned to comply with US export regulations. But new Commerce Department restrictions could limit exports of even those chips, according to the magazine.