The US-based chipmaker Nvidia Corp confirmed on Monday a new advanced chip for China that supposedly meets the recent US export regulations.
In Nvidia’s report, the chipmaker company noted that Chinese computer sellers are using the new chip to advertise their products.
The new chip Nvidia A800 is the US-based chipmaker’s first effort to create advanced processors for China following the new US export regulations, which may cost hundreds of millions of dollars for Nvidia’s revenue.
According to the US semiconductor maker, the Nvidia A800 is an alternative to the Nvidia A100 GPU, which was banned for trade after being included in the export control list.
Nvidia spokesperson stated, “The Nvidia A800 GPU, which went into production in Q3, is another alternative product to the Nvidia A100 GPU for customers in China. The A800 meets the US Government’s clear test for reduced export control and cannot be programmed to exceed it.”
However, the US chip maker did not confirm if they consulted the US Commerce Department regarding the new chip.
The new US export standard, which was set in October, is a move designed to sever the flow of critical technologies that China could use in their advanced computing sectors and weapon manufacture. Said rules banned the export of advanced microchips, including the equipment that Chinese manufacturers could use to produce the tech.
Nvidia Shareholder Cathie Wood Offloads Ahead of Company’s Q3 Earnings
Cathie Wood’s Ark Innovation ETF, which previously owned 1.43% shares in Nvidia, now only owns 1.08% shares after selling 167.914 shares on Friday. Adding the 50,252 shares that Wood’s firm sold in October, the firm offloaded a total of 218,166 shares.
This news came before Nvidia’s latest trading session rebound after it closed at $143.01, which marks a 1.02% increase from the previous day. This increase outperformed the S&P 500’s 0.96% daily gain.
Looking forward, Nvidia is expected to release its Q3 earnings on November 16. Analysts expect the US chipmaker to report a $0.73 EPS, which is 37.61% down from the previous quarter.
