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NVIDIA Corp NVDA shares are trading lower Thursday after the company said its China sales are being restricted by the U.S. government.
In a Form 8-K filing with the SEC, Nvidia said the U.S. government on Aug. 26 informed the company that it has imposed a new license requirement for any future exports to China in order to address the risk that some products could be used for military purposes in China and Russia.
Nvidia said the new requirements will impact its A100 and H100 products.
“The license requirement also includes any future NVIDIA integrated circuit achieving both peak performance and chip-to-chip I/O performance equal to or greater than thresholds that are roughly equivalent to the A100, as well as any system that includes those circuits,” Nvidia said in the filing.
Nvidia will reach out to customers in China and seek to satisfy their planned or future purchases of the company’s data center products with products not subject to the new license requirement.
Nvidia expects that the new license requirement could result in a loss of $400 million in potential sales to China in the current quarter. The company previously guided for $5.9 billion in revenue for the third quarter, plus or minus 2%.
Related Link: Nvidia, AMD Shares Tumble As US Slaps Export Curbs on Top AI Chips To China: What’s At Risk Here?
NVDA Price Action: Nvidia has a 52-week high of $307.11 and a 52-week low of $140.55.
The stock was down 3.94% at $145 at press time, according to Benzinga Pro.
Photo: courtesy of Nvidia.
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Image and article originally from www.benzinga.com. Read the original article here.