Colette Kress, the chief financial officer of Nvidia, said that restrictions on the selling of AI processors and expensive components already had the desired impact during a conference call with analysts on Wednesday night. The corporation is now not allowed to sell its premium graphics processing unit, or GPU, in the nation, despite the fact that it does so in China.
“Over the long term, restrictions prohibiting the sale of our data centre GPUs to China, if implemented, will result in a permanent loss of an opportunity for the US industry to compete and lead in one of the world’s largest markets,” Kress stated after Nvidia’s earnings report. The head of finance claimed that she was responding to information about possible increases in controls “on our exports to China.”
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However, she said that in the short run, tighter regulations wouldn’t have a significant impact on Nvidia’s finances.
We don’t expect any export restrictions on our data centre GPUs, if adopted, to have an immediate meaningful impact on our financial results, Kress added, citing the robust global demand for our products.
Chief Executive Officer Jensen Huang, the boss of Kress, recently travelled to Washington, D.C., with representatives from Qualcomm Inc. and Intel Corp. to make the case for a halt to the expansion of export regulations. According to the Biden administration, constraints are necessary to protect US national interests and stop China from developing its military.
According to Bloomberg, additional limitations that would hinder Nvidia’s ability to ship to Asia, the region with the largest semiconductor market, are being explored.
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Benefiting from an industry-wide push towards AI computing, Nvidia on Wednesday provided a third straight sales forecast that beat Wall Street projections. As a result, shares rose 6% in late trade. The corporation reports no sales in China, although around two-thirds of its revenues come from outside the US.
Meanwhile, the largest group of international chip makers is warning that Huawei Technologies Co. is constructing a network of covert semiconductor fabrication facilities across China, circumventing US sanctions and advancing the country’s technological aspirations.