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US eases restrictions on Nvidia after banning AI chip exports to China

Nvidia’s shares ended the week down nearly 15% after the California-based semiconductor maker was embroiled in a high-stakes tech war between the US and China. US officials have ordered the company to stop exporting two of its top computing chips to China.

But the US has followed up by giving the company a little breathing room – for now.

Nvidia headquarters

Chip maker Nvidia is embroiled in a tech war between the US and China. (Reuters/Robert Galbraith/Reuters)

Nvidia said in Wednesday’s Securities and Exchange Commission (SEC) filing that the U.S. informed the company last week of new licensing requirements for the A100, currently the highest-performing artificial intelligence chip, and the next-generation AI chip currently in development. made it clear. Development, H100.

The move means the company will export both chips to Chinese customers as the United States seeks to limit the spread of technology to China that could be used to make weapons amid heightened tensions between the two countries. is effectively prohibited.

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Nvidia said licensing requirements could delay the development of the H100 and hamper its ability to bring the A100 to customers, with the company forecasting $400 million in sales in its third fiscal year, with part of its business out of China. I said I might have to move departments. Quarter ending in October.

The news sent Nvidia’s stock price plummeting.

ticker safety last Change change %
NVDA NVIDIA Corporation 136.47 -2.90 -2.08%

Then on Thursday, the company submitted an amended disclosure, stating that the government agreed to allow the exports necessary to continue development of the H100 until March 1 of next year, and to provide the necessary support. It has revealed that it has allowed Nvidia to continue exporting. A100 US customers until the same day.

Falling stock prices provided a buying opportunity for Kathy Wood. According to Barron’s, Ark Invest’s CEO and CIO sold their stake in Tesla to buy Nvidia.

Jefferies analyst Marc Ripathis said the magazine’s selling was an “overreaction.” Needham analyst Rajvindra Gill took a different view, saying licensing was a “significant headwind” for the company.

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The United States also agreed to allow Nvidia to fulfill orders through its Hong Kong facility until September 1, 2023. This means the company can ship outside of China.

The Nvidia Corporation logo is seen at the annual Computex Computer Show in Taipei, Taiwan on May 30, 2017. (REUTERS/Tyrone Siu/File Photo / Reuters Photos)

In an emailed statement to FOX Business, an Nvidia spokesperson said, “We are working with our customers in China to meet their planned or future purchases with alternative products, and we believe that alternatives are not sufficient. “The only current products subject to the new licensing requirements are systems such as the A100, H100, and DGX, which includes them.”

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Ken Martina of FOX Business and Associate Press contributed to this report.

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