can’t take a break.
Late Wednesday, the chipmaker said in a filing that the US government has informed the company that it has imposed a new licensing requirement, effective immediately, covering all exports of Nvidia’s A100 and upcoming H100 products to China, including Hong Kong and Russia. .
Nvidia’s A100 are used in data centers for artificial intelligence, data analytics and high-performance computing applications, according to the company’s website.
The government “indicated that the new licensing requirement will address the risk that the covered products could be used in or diverted to a ‘military end-use’ or ‘military end-user’ in China and Russia,” the filing said.
) shares fell 3.9% to $145 in after-hours trading.
Nvidia said it will not sell products to Russia, but noted that its current outlook for the fiscal third quarter includes about $400 million in potential sales to China that could be affected by the new licensing requirement. The company also said the new restrictions could affect its ability to develop its H100 product on time and potentially force it to move some operations out of China.
An Nvidia spokesperson told Barron’s in an email: “We work with our customers in China to satisfy their planned or future purchases with alternative products and can request licenses if replacement is not enough. The only current products to which the new licensing requirement applies are A100, H100 and systems such as DGX that contain them.”
The latest development comes after a string of weak financial results from Nvidia. Last week, the company released a revenue forecast for the October quarter that was significantly below expectations, citing a difficult macroeconomic environment and a rapid slowdown in demand.
Last Friday, Barron’s said more trouble lay ahead for the chipmaker and investors looking for a quick turnaround could be disappointed.
Shares of Nvidia are down about 49% this year, compared to the 32% drop in the
iShares Semiconductor ETF
(SOXX), which tracks the performance of the ICE Semiconductor Index.
Write to Tae Kim at [email protected]