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A Nvidia Corp. HGX H100 graphics processing unit (GPU) for artificial intelligence in the showroom of the company’s offices in Taipei, Taiwan, on Friday, June 2, 2023.
Ai Huacheng | bloomberg | Getty Images
The Wall Street Journal mentioned On Tuesday evening, the United States was considering new restrictions on the export of artificial intelligence chips to China, which could affect Nvidia, the market leader in graphics processors needed to build artificial intelligence software such as ChatGPT.
nvidia Chief Financial Officer Colette Kress downplayed the impact of potential export restrictions at a financial conference on Wednesday, saying it would not have an “immediate financial impact” but that further restrictions could hurt the company’s future growth.
Nvidia stock started to recover after Kress’ comments before falling about 1.8% in daily trading. Nvidia stock is up over 179% so far in 2023.
“We are aware of reports that the US Department of Commerce is considering further controls that may restrict exports of the A800 and our H800 products to China,” Chris said, referring to the company’s chips. “However, given the strength of our product demand worldwide, we do not anticipate that such additional restrictions, if adopted, would have an immediate material impact on our financial results.”
Chris said China accounts for between 20% and 25% of the company’s data center revenue, which totaled $4.28 billion in sales in the first quarter. This includes other chips, not just those used in artificial intelligence, including networking parts.
Chris said Nvidia’s growth prospects could be affected.
“In the long term, restrictions prohibiting the sale of our data center products to China, if implemented, will result in a permanent loss of opportunities for the US industry to compete and lead in one of the largest markets in the world. And the effect will be on our future business and financial results,” Chris continued.
Nvidia is a leader in the parts needed to build advanced AI systems, and AI engineers are coveting the company’s new A100 and H100 chips. The US government is restricting Chinese access to the company’s technology to prevent individuals and companies in the region from catching up with the US.
Nvidia had previously introduced the A800 and H800 chipsets with hardware tweaked and slowed down to comply with US export controls. But according to the Journal, new restrictions imposed by the Department of Commerce could restrict the export of even those chips.
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