Hong Kong
CNN
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Nvidia’s chief financial officer warned Wednesday that it would create “permanent lost opportunities” for U.S. industries if the U.S. imposed new restrictions on exports of AI chips to China.
but Executive Colette Cress said she doesn’t expect any “immediate and material impact” on technology companies if the regulations are introduced.
According to multiple media reports, including The Wall Street Journal and Financial Times, U.S. officials plan to tighten export controls announced in October that limit the sale of some artificial intelligence chips to China. The U.S. government is stepping up its efforts to cut China off from key technologies that could aid it militarily.
The rule could make it harder for companies like Nvidia (NVDA) to sell advanced chips to China. Boosted by booming demand for AI chips, the company briefly hit a $1 trillion market cap in late May.
“We are aware of reports that the U.S. Department of Commerce is considering further regulations that may limit the export of our A800 and H800 products to China,” Kress said at an investment conference.
“Long-term, the implementation of regulations banning the sale of our data center GPUs to China would permanently jeopardize US industry’s opportunity to compete and lead in one of the world’s largest markets. It will affect our future business and our business, the results of our financial results,” she said.
GPU refers to graphics processing unit, a chip or electronic circuitry that can render graphics for display on electronic devices.
“Given the strength of global demand for our products, we do not expect any immediate material impact on our financial results, even if such additional restrictions were adopted. We do not expect any immediate material impact on the results,” Kress added.
The Commerce Department did not respond to CNN’s request for comment.
Last October, the Biden administration announced a broad set of export controls banning Chinese companies from buying advanced chips and chip-making equipment without a license.
Bloomberg reports that part of this new move is aimed at Nvidia’s A800 chip, which the US-based company has turned to to continue selling to China following the introduction of regulations last year. said to have been developed.
China is an important market for Nvidia. Mainland China and Hong Kong accounted for 22% of the company’s revenue last year, according to its financial statements.
Nvidia’s stock fell 3.2% on Wednesday before recouping some of its losses. It closed 1.8% lower.
Chinese AI stocks also fell on news of additional U.S. restrictions.
In the Shenzhen market on Wednesday, Inspur electronic information industry fell by an acceptable maximum of 10%. It fell 8.5% again on Thursday.
Chinese Academy of Sciences Chengdu Information Technology fell 12% on Wednesday. It recouped some of its losses on Thursday, rising 1.6% in recent trading.
Baidu fell 3.4% in Hong Kong on Thursday.
China has strongly criticized U.S. high-tech export controls and said earlier this year that it would “resolutely oppose” such measures.
In May, the Chinese government banned Chinese operators of critical information infrastructure from purchasing Micron Technology (MU) products, a clear response to sanctions imposed on the country’s chip sector by the US government and its allies. Retaliation.
