The Biden administration expanded curbs on exports of certain AI chips beyond China to include several Middle Eastern countries, chipmaker Nvidia (NVDA) said in a regulatory filing.
- The Biden administration expanded curbs on exports of AI chips beyond China to include certain Middle Eastern countries, Nvidia disclosed in a regulatory filing.
- Nvidia said the latest round of export restrictions will not have "an immediate material impact" on its financial results, but acknowledged its competitive position "may be harmed" in the long run.
- The decision follows an October move to limit exports of high-end semiconductors to China, which in recent years has been accused of stealing vital U.S. intellectual property.
The curbs affect exports of Nvidia's A100 and H100 integrated circuits. Rival chipmaker AMD (AMD) also received a letter, a person familiar with the matter told Reuters.
Export restrictions are a tool used by a nation's government to protect national security or safeguard vital economic interests. In recent years, China has been the primary target of U.S. export restrictions, as government officials have accused the country of stealing intellectual property rights and vital technologies for military or geopolitical purposes.
Last October, the Biden administration launched a sweeping set of restrictions on exports of high-end semiconductors to China, aimed at preventing China from accessing sensitive technologies that could be used in military applications. The restrictions included a measure to cut China off from certain chips made anywhere in the world with U.S. technology.
In its 10-Q filing with the U.S. Securities and Exchange Commission for the latest fiscal quarter, Nvidia said the restrictions will not have "an immediate material impact" on its financial results, but acknowledged its competitive position "may be harmed" in the long run. Nvidia gets roughly one-fifth of its $13.5 billion in revenue from China, earnings for the quarter ended July showed.
By contrast, just 13.3% of revenue is derived from countries other than the U.S., China, or Taiwan, with Middle Eastern countries accounting for just a small fraction of that. The risks posted by exports to the Middle East weren't immediately clear, and a company spokesperson interviewed by Reuters said the latest restrictions would have no material impact on Nvidia's revenue.
Nvidia shares were up 0.3% in trading at 1:30 p.m. Eastern Thursday, while those of rival AMD fell almost 0.3%. Nvida shares have skyrocketed 240% so far this year and are the S&P 500's best performers, while shares of AMD have surged more than 60%.