In response, Nvidia has started shipping alternative products to China that don't require a license and is trying to develop chips that comply with U.S. restrictions. However, Chinese customers are reportedly turning to domestic alternatives, with Chinese tech companies less interested in Nvidia's downgraded products. Chinese chipmakers are promoting their own chips as a safer option due to the potential for new U.S. controls.
Key takeaways:
- Nvidia reported a 265% increase in revenue from the same period a year ago, with shares rising over 9% in extended trading.
- China now represents a "mid-single digit percentage" of Nvidia’s data center revenue, a significant drop from previously making up as much as a quarter of the company’s data center revenue.
- The U.S. government has not granted a license to Nvidia to ship restricted products to China, leading to the company shipping alternative products that don't require a license.
- Nvidia is trying to develop chips for the Chinese market that comply with U.S. restrictions, but Chinese customers are reportedly turning to domestic alternatives instead, viewing them as a safer option due to the possibility of new controls from the U.S.