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NVIDIA : U.S. Imposes New License Requirement For Future Export Of Some Chips To China, Russia

NVIDIA Corp. (NVDA) disclosed in a regulatory filing that the U.S. government has imposed a new license requirement for any future export to China, including Hong Kong, and Russia of the company's A100 and forthcoming H100 integrated circuits. DGX or any other systems which incorporate A100 or H100 integrated circuits and the A100X are also covered by the new license requirement.

The U.S. indicated that the new license requirement will address the risk that the covered products may be used in, or diverted to, a 'military end use' or 'military end user' in China and Russia.

NVDA closed Wednesday regular trading at $150.94 down $3.74 or 2.42%. In the after-hours, the stock further dropped $9.90 or 6.56%.

NVIDIA noted that it does not sell products to customers in Russia.

According to the chip maker, the new license requirement may impact the company's ability to complete its development of H100 in a timely manner or support existing customers of A100 and may require the company to transition certain operations out of China. The company is engaged with the U.S. and is seeking exemptions for the company's internal development and support activities.

The company's outlook for its third fiscal quarter provided on August 24, 2022 included approximately $400 million in potential sales to China which may be subject to the new license requirement if customers do not want to purchase the company's alternative product offerings or if the US does not grant licenses in a timely manner or denies licenses to significant customers.

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