Nvidia CEO Jensen Huang has reportedly criticized Washington’s export curbs on the sale of AI chips to China, calling them a “failure” that will drive Chinese rivals to develop their own semiconductors. The US chipmaker expects to take a $5.5 billion charge in its first fiscal quarter due to new restrictions on selling its H20 chips to China.
Huang stated that local companies are talented and determined, and export controls give them the motivation and government support needed to accelerate their development. This could lead American firms like Nvidia to lose market share in China, where Nvidia once had 95% of the market but now has only 50%.
Nvidia peer Advanced Micro Devices (AMD) also expects to face charges of up to $800 million related to export curbs on its MI308 chip sales to China. The company will report its fiscal first-quarter results next Wednesday.
Shares of Nvidia have risen about 2% in recent trading, adding around 2% since the start of the year, as investors wait for more news on the impact of export restrictions on its business.
Source: https://www.investopedia.com/nvidia-ceo-jensen-huang-calls-us-curbs-on-advanced-chip-exports-to-china-failure-11739180