Nvidia Introduces Slower Gaming Chip in China To Comply with New US Export Rules
Key Takeaways
- Nvidia Corp. introduced a slower gaming chip in China that complies with U.S. restrictions on certain technology being sold to that country.
- The GeForce RTX 4090D Series graphics processing unit (GPU) has reduced performance and core count compared with the model Nvidia announced last year.
- Nvidia shares were off 1% Friday but they have skyrocketed this year on demand for artificial intelligence (AI) chips, although the U.S. export rules have raised investor concerns.
Nvidia Corp. (NVDA) shares were lower Friday after the semiconductor maker introduced a slower gaming chip in China to comply with new U.S. restrictions on technology sales to that country.
The company released the GeForce RTX 4090D Series graphics processing unit (GPU) on its Chinese website, saying it “delivers a quantum leap in performance, efficiency, and [artificial intelligence] AI-driven graphics,” and “an exceptional experience for gamers and creators.”
However, the chip’s performance via power draw is 5.9% lower than the model Nvidia announced last year, and the core count was also cut.
The move came in response to President Joe Biden’s administration placing export restrictions on certain advanced AI chips sent to China, citing national security concerns. Earlier this month, Chief Executive Officer (CEO) Jensen Huang said the company would make chips meeting the White House’s criteria.
Nvidia has been the leading maker of chips for AI applications, and that’s shown in its stock price, which skyrocketed to an all-time high in May and then kept climbing. However, shares hit a speed bump in October after the company reported that the new U.S. government restrictions were taking effect immediately and would affect its products.
Still, shares have since rebounded, and even with Friday’s decline of more than 1%, they continue to trade near their record high.