The US government's recent restrictions on international exports are starting to affect Nvidia and its new products, including the all-powerful GeForce RTX 4090. Due to the new regulations, China will no longer be able to receive shipments, along with a few other countries that have also been restricted. While the company may see the issue as a part-time bump in the road, interested consumers from around the world will be impacted who are interested in buying a new GPU from Nvidia.
As Nvidia continues to deliver high-powered products around the world, it must also comply with the Biden administration's current actions to enact and ensure national security. Certain semiconductors, following a set of new rules, are to be closed from China. The purpose is to "update export controls on advanced computing semiconductors and semiconductor manufacturing equipment, as well as items that support supercomputing applications and end-uses," complete with additional regulations to protect national security. Due to these recent changes, Nvidia will have to face some adjustments.
Ultimately, Nvidia will be unable to ship a number of its products to China starting on November 16, 2023. This comes into effect 30 days after the initial reported date with the United States Securities and Exchange Commission (October 17, 2023). These products include the A100, A800, H100, H800, L40, L40S, and GeForce RTX 4090 cards and modules. To circumvent this, Nvidia intends to operate elsewhere should it require more streamlined methods for production.
While Nvidia has plans to work around the shipment issue, this is only the beginning of the restrictions being imposed on the aforementioned advanced computing semiconductors and semiconductor manufacturing equipment. Nvidia, along with Intel and AMD, had shortened stock percentages on Tuesday following the administration of the new export regulations. Still, the company sees the issue as short, stating, "Given the strength of demand for our products worldwide, we do not anticipate that the additional restrictions will have a near-term meaningful impact on our financial results."
China isn't the only country that's being affected by the US government's decision to halt certain shipments. Saudi Arabia, the United Arab Emirates, and Vietnam are also being accounted for, all in an effort to limit international access to advanced technologies that might aid in foreign military operations. It's possible that other regions could be affected if the US government continues to enact new regulations for international trade. Even if Nvidia and other companies are mainly being affected, further advanced technologies could come into question.
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