Despite the restrictions, Nvidia does not anticipate a significant impact on its financial results due to strong global demand for its products. The export restrictions are also likely to affect Intel and AMD's ability to sell high-end AI accelerators and GPUs in China. Both companies are due to report their Q3 earnings later this month, which may reveal more about the impact of these restrictions.
Key takeaways:
- The US government has put into effect restrictions on the export of high-performance AI accelerators to China, impacting Nvidia's A100, A800, H100, H800, and L40S products.
- Nvidia's RTX 4090, a high-performance gaming GPU, is not included in the list of affected products, but the company warned that its sales in China could be impacted by sanctions.
- Chinese companies including Alibaba, Baidu, ByteDance, and Tencent had ordered a $1 billion worth of A800s and committed to buying another $4 billion worth of GPUs from Nvidia in 2024, but these orders may now be left unfulfilled.
- Despite the accelerated timeline of the restrictions, Nvidia does not anticipate a near-term meaningful impact on its financial results due to strong global demand for its products.