Key Takeaways
- Nvidia shares slipped on word the chipmaker delayed the launch of a new AI semiconductor designed to comply with new U.S. export rules.
- The H20 was the most powerful of three new chips designed for use in China.
- A Reuters report said the H20 won’t be out until the first quarter of next year.
Nvidia (NVDA) shares slumped on a report the semiconductor maker was delaying the launch of a new artificial intelligence (AI) chip for China that would comply with the latest U.S. export restrictions.
Reuters said the H20 chip was the most powerful of three semiconductors the company was set to put out after President Biden signed an executive order in August limiting investments in China for “sensitive technologies critical to national security in three sectors: semiconductors and microelectronics, quantum information technologies, and artificial intelligence.”
It had been believed the Nvidia chips could be launched this month. However, people familiar with the matter indicated the H20 chip would now be launched in the first quarter of 2024 due to issues server makers were having integrating the chip.
The sources told Reuters that one of the other chips, L20, wasn’t facing delays and would be out as scheduled. It’s unclear about the status of the third chip, named L2.
Shares of Nvidia have been soaring, hitting an all-time high on Monday on booming demand for its AI semiconductors. However, shares dipped when the company explained following the release of its quarterly earnings report that the China export rules would negatively impact current quarter results.
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