The Biden administration has expanded restrictions on exports of some AI chips beyond China will include several Middle Eastern countries, chipmaker Nvidia (NVDA) said in a regulatory filing.
Points to remember
- The Biden administration has expanded restrictions on AI chip exports beyond China to include some Middle Eastern countries, Nvidia revealed in a regulatory filing.
- Nvidia said the latest round of export restrictions will not have “immediate material impact”. on its financial results, but acknowledged that its competitive position “could be affected” in the long term.
- The move follows an October decision to limit exports of high-tech semiconductors. to China, which has been accused in recent years of stealing vital American intellectual property.
The restrictions affect exports of Nvidia's A100 and H100 integrated circuits. Rival chipmaker AMD (AMD) also received a letter, a person familiar with the matter told Reuters.
Export restrictions are a tool used by the government of a country. to protect national security or safeguard vital economic interests. In recent years, China has been the main target of US export restrictions, with government officials accusing the country of stealing intellectual property rights and vital technologies for military or geopolitical purposes.
Last October, the Biden administration launched a sweeping set of restrictions on high-end semiconductor exports to China, aimed at preventing China from accessing sensitive technologies that could be used in military applications. The restrictions included a measure to exclude China from certain chips made anywhere in the world with American technology.
In its 10-Q filing with the U.S. Securities and Exchange Commission for the most recent fiscal quarter, Nvidia said the restrictions would not have an “immediate material impact” on its financial results, but acknowledged that its competitive position “could be affected” in the long term. run. Nvidia derives about a fifth of its $13.5 billion in revenue from China, according to results for the quarter ended July.
In contrast, only 13.3% of revenue comes from countries other than the United States, China or Taiwan, with countries in the Middle East accounting for only a small fraction. The risks associated with exports to the Middle East were not immediately clear and a company spokesperson interviewed by Reuters said the latest restrictions would have no material impact on the company's revenue. Nvidia.
Nvidia shares rose by 0.3% on the stock market at 1:30 p.m. Eastern Thursday, while those of its rival AMD fell by almost 0.3%. Nvida shares have soared 240% so far this year and are the best performers in the S&P 500, while AMD shares have jumped more than 60%.
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