The US-China trade war has been on for a few years now. Both Chinese and US companies have felt the repercussions. A report by The Wall Street Journal noted that the US is mulling a ban on the sale of chips that could help China with the development of AI. Nvidia is one of the biggest manufacturers of chips that deals with China as well as the US wants to curb that. Now, Nvidia has come out and said that even if the ban was put in place, it won\u2019t have that big an impact.
According to a report by CNBC, Nvidia\u2019s CFO Colette Kress said that the company is aware that its exports to China might be curbed.\u201cHowever, given the strength of our demand for our products worldwide, we do not anticipate that such additional restrictions, if adopted, would have an immediate material impact on our financial results,\u201d she said, as per the CNBC report.
Nvidia makes billions of dollars from China<\/span>
She also said that the Chinese market accounts for close to 20-25% of the company\u2019s revenue from the data centres. This includes chips as well as other networking parts. Nvidia acknowledges that its growth could certainly be impacted. \u201cOver the long term, restrictions prohibiting the sale of our data centre products to China, if implemented, we will result in a permanent loss of opportunities for the U.S. industry to compete and lead in one of the world\u2019s largest markets. And the impact on our future business and financial results is there,\u201d Kress added.
In September 2022, the US banned Nvidia from exporting two of its most advanced chips to China. Nvidia A100 and H100 are the two critical chips that were banned by the US. Both chips are used for high-performance computing as well as for training AI models.
Nvidia did come up with a new less powerful chip that could have been exported to China. However, the US now plans to block that as well.<\/div>\n