Nvidia Stock (NASDAQ:NVDA)
Nvidia stock increased by about 1% on Wednesday after the company’s chief executive stated there is still significant room for Nvidia’s products in China despite worries over regulations.
CEO Jensen Huang stated at a press conference that Nvidia stock should not be too affected by the limits imposed by the U.S. government.
According to Reuters, Nvidia (NASDAQ:NVDA) CEO Jensen Huang said, “the vast majority of our clients are not affected by the specification,” meaning that despite the limitations, the company still has a “big space” in the Chinese market.
Moreover, Huang stated that a “great number of goods” in the United States and China will be architecturally compatible, fall within the parameters, and not require a license.
In addition to Huang’s statements, Nvidia (NASDAQ:NVDA) has been working on a simulation platform for autonomous driving research alongside lidar developer Cepton (NASDAQ:CPTN). After the news broke, shares of Cepton (NASDAQ:CPTN) jumped by more than 17%.
Analysts had noted that the revelation may pose a “structural risk” to the entire industry when Santa Clara, California-based Nvidia stock and Advanced Micro Devices (NASDAQ:AMD) reported that the Biden administration restricted the sale of some of their products to China and Russia.
U.S. government “explained that the new licensing requirement will address the possibility that the covered items may be used in, or diverted to, a military end use’ or military end user’ in China and Russia,” Nvidia (NASDAQ:NVDA) wrote in an 8-K filing.
When asked about the potential financial impact, Nvidia (NASDAQ:NVDA) estimated $400M, while AMD (NASDAQ:AMD) said it did not envisage any significant change.
However, Nvidia stock said in a separate 8-K filing that the U.S. government has approved exports of its H100 integrated circuits and that it has approved order fulfillment and logistics for both the A100 and H100 through the company’s Hong Kong location until September 1, 2023.
At its annual conference on Tuesday, Nvidia (NASDAQ:NVDA) unveiled several new products, including high-end RTX and GeForce GPUs.
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