Nvidia Corp. NVDA has decided not to launch a new chip from his hopper series in China. This decision comes after the restrictions of the US government on the sale of H20 chip, as confirmed by the CEO of Nvidia, Jensen Huang.
What happened: Huang stated during a live stream of Taiwan’s Formosa TV News Network that further changing the Hopper series is not feasible, Reuters reported. Earlier this month, Reuters reported that Nvidia is planning to launch a reduced version of the H20 chip in China within two months. This strategy is intended to increase sales in a market where Nvidia has lost ground for domestic competitors such as such as such as Huawei.
“It’s not Hopper because it is not possible to adjust Hopper anymore,” Huang confirmed.
After the US had imposed new restrictions on the H20 Chip export to China, Huang visited the country. The H20 chip is the only AI chip that Nvidia can legally sell in China, a market that has often emphasized Huang as crucial for the growth of Nvidia.
The American framework for artificial intelligence diffusion, released in January, tried to limit the export from AI Chip to the majority of countries. Huang has previously criticized these export controls and has called for the global expansion of American technology.
Why it matters: China accounted for 13% of the total turnover of Nvidia in the tax year ending on January 26, with a turnover of $ 17 billion for the company. The decision not to launch the Hopper Series -Chip can affect the market share and the turnover of Nvidia in China.
Last week, Nvidia and other chip stocks obtained after reports from the Trump administration indicated to withdraw the artificial intelligence diffusion of the Biden administration. This policy created three wide access levels for countries looking for AI chips and would have come into effect on 15 May.
In the meantime, Nvidia is planning to expand his research footprint in China with a new R&D center in Shanghai. This movement indicates a strategic urge to preserve the AI dates in the region in the midst of the tightening of the US export restrictions.
Benzinga Edge Stock Rankings Show that NVDA had a strong price trend in the short, medium and long term. The momentum ranking list was strong on the 84th percentile, while the value of the value was bad in the 7th percentile; The details of other statistics are available here.
Nvidia shares increased by more than 39%in the past month.
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