Nvidia is bracing for a potential revenue loss of up to $5.5 billion because of new US government restrictions on the export of its H20 chip to China. This chip plays a critical role in AI development but is now under scrutiny due to concerns about its potential use in enhancing China's supercomputing capabilities. Similarly, AMD is also experiencing export restrictions on its MI308 chip, which could cost it about $800 million. These limitations reflect increasing tensions between the US and China regarding advanced technology exports.
Nvidia projects that the new US government restrictions on H20 chip exports to China could lead to a significant revenue loss of up to $5.5 billion.
The restrictions target Nvidia's H20 chip, critical for AI development, amid fears it could enhance China's supercomputing capabilities.
In addition to Nvidia, AMD has also faced export restrictions on its MI308 chip, estimating a potential revenue hit of $800 million due to these limitations.
The H20 chip remains Nvidia's most advanced offering in China but lags behind its more powerful counterparts available elsewhere.
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