Reports indicate that Nvidia is postponing the launch of a new artificial intelligence device designed to navigate U.S. export limitations to China, leading to a decline in Nvidia’s stock during Friday morning trading.
As per Reuters, Nvidia has notified Chinese users about the delay in introducing H20, one of the three new AI cards being developed by the tech giant to adhere to the latest trade regulations. The release of the device is now rescheduled for the first quarter of 2024.
Nvidia’s stock experienced a 1.2% drop to $481.40 in daily trading following this announcement, reflecting growing concerns among Nvidia stakeholders regarding the impact of U.S. trade restrictions on their Chinese operations.
Initially, Nvidia’s stock surged when news broke that the company was preparing to launch new AI components tailored for the Chinese market. However, after the release of its quarterly results, the stock took a hit despite surpassing Wall Street’s expectations. The company’s performance fell short of optimistic projections.
Colette Kress, Nvidia’s CFO, cautioned that the U.S. restrictions would have a significant negative effect on sales in China. She emphasized the uncertainty surrounding the long-term implications of these trade limitations on their business operations in China.
Nvidia has established itself as a key player in providing chips capable of meeting the substantial computing requirements of emerging AI systems.
