Nvidia is reportedly delaying the rollout of a new artificial intelligence chip designed to comply with U.S. restrictions on exports to China. Nvidia stock slipped in morning trade on Friday.
Nvidia has told customers in China that it is delaying the launch of H20, one of three new AI chips the chip giant is developing in order to comply with new export restrictions, Reuters reported citing unnamed sources. The processor's launch has been pushed back to the first quarter of 2024, the report said.
Nvidia stock fell 1.9% to close at 477.76 on today's stock market.
The impact of U.S. trade restrictions on China has been a growing concern for Nvidia investors.
Nvidia stock rallied two weeks ago on reports that the semiconductor company was about to unveil new AI chips for customers in China.
But the shares also retreated this week after Nvidia posted quarterly results. The company beat Wall Street's projections, but missed lofty "whisper numbers" for its outlook.
Nvidia Chief Financial Officer Colette Kress warned that U.S. restrictions will have a "substantial" impact on sales in China.
"The export controls will have a negative effect on our China business, and we do not have good visibility into the magnitude of that impact even over the long term," she said.
Nvidia has emerged as a dominant player in the market for processors capable of handling the massive computing processing needs of emerging AI technologies.
