Technology

Nvidia falls on Wall Street as Washington restricts exports to China

Nvidia also ensures that no products are sold directly in Russia. (Photo: 123RF)

NEW YORK – US computer component maker Nvidia (NVDA) fell on Wall Street Thursday after the group announced that the US government was restricting exports of GPUs to China and Russia to prevent their military use.

Shares of Nvidia fell more than 11% in the middle of the session on the New York Stock Exchange. (-8.71% at 14:40)

The company first explained in a stock exchange document released Wednesday night that US authorities informed it on Aug. 26 of new rules imposing restrictions on all future exports to China, including Hong Kong, and Russia, its A100. GPUs and the H100 in development.

Washington’s intent, Nvidia explains, is to prevent “the risk that the relevant products will be used or diverted for military purposes or by military actors in China and Russia.”

The rules could affect Nvidia’s ability to timely develop the H100, which is expected to be the company’s new AI flagship, and ship to customers already using the A100, the company warned.

The group expected to sell about US$400 million of these products to China in the third quarter.

Nvidia also ensures that no products are sold directly in Russia.

After these comments, the US government softened its position a little.

In another stock market document released Thursday morning, Nvidia indicates that Washington has finally allowed the trades needed to develop its H100 graphics cards.

The US authorities also agreed that the company must export the A100 aircraft needed by its US customers until March 1, 2023.

They also authorized Nvidia to prepare and manage the delivery of A100 and H100 orders to customers outside of China through its Hong Kong office until September 1, 2023.

“We are working with our customers in China to meet their planned or upcoming purchases of alternative products, and may request new licenses when replacements are not enough,” an Nvidia spokesperson said in a statement to AFP.

The US Department of Commerce, contacted by AFP, did not respond Thursday at noon.

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