Chip maker Nvidia Corp. said on Wednesday that US officials have ordered a halt to the export of two of its best computing chips. for Artificial intelligence work to China, a move It can cripple Chinese companies ability to carry out advanced work like Image recognition and hampers Nvidia business in China.
nvidia shares It fell 6.6% after hours. The company said the ban affects A100 and H100 chips designed to me speed up machine learning tasks can interfere with finished of The development of H100, Nvidia’s main chip announced this is year.
Involved of Shares of Advanced Micro Devices Inc, Nvidia’s competitor, fell 3.7 percent after that hours. An AMD spokesperson told Reuters that the company received new license requirements This will prevent MI250 AI chips from being exported to China but it believes its MI100 chips will not be affected. AMD said it was incredible new rules will have a material Effect on that it business.
Nvidia said US officials told it to new rule “I will cure risk It can use covered products inor converted tomilitary End use’ or ‘military end user in China.”
Requested for commentDepartment of the United States of Trade won’t say what new standards set by out for AI chips that can no longer be shipped to China but said it was reviewing its China-related policies and practices “continue to advance.” technologies out of The wrong hands.
“While we are not in Position to outline selected policy changes At this time, we are taking a comprehensive approach to implement the necessary additional measures related to technologiesend uses, and end users to protect the United States national Security and foreign policy A spokesman told Reuters.
The announcement Indicates a significant escalation of US campaign on China’s technological capabilities as bubble tensions over fate of Taiwan, where the potato chips for Nvidia and almost every other major chip company manufactures it.
Without American chips from companies like Nvidia and AMD, Chinese organizations won’t be able to costActive load out Type of advanced computing used for Image and speech recognition, among many other things tasks.
Recognize images and nature language processing common in Consumer Applications like Smartphones that can answer inquiries and signs photos. that they also You have military Uses such as scanning satellite images for Weapons, rules and filters digital Communications for Intelligence gathering purposes.
Nvidia said it booked $400 million in sales of The chips affected this quarter To China can be lost if Chinese companies decide not to do so buy Nvidia Alternative Products. he said that plans to apply for exemptions rule But she has no “assurances” that US officials will give her.
Stacy Rasgon, A financial analyst with Bernstein said the disclosure indicated that about 10% of Nvidia data center sales, which investors have been keeping a close eye on in Recent years, it was coming from China and that hit Sales Was Likely to Be “Manageable” for Nvidia.
“It is not the thesis (investment) changing, but it is not good Rasgon said. “What is happening on Both sides now is the question possible Continuous escalations forward.
Chip ban comes like Nvidia last week already sharp expectations drop in he won for The current quarter on The back of weaker gaming industry. Nvidia said it expects a third-quarter sales of $5.90 billion down 17% of the same period last year.
