Latest news with #A800
Yahoo
03-05-2025
- Business
- Yahoo
Nvidia (NVDA) Redesigns Chips to Sidestep U.S. Export Ban, Eyes June China Rollout
Nvidia (NVDA, Financials) is redesigning its AI chips to comply with U.S. export rules while maintaining access to the Chinese market, The Information reported, citing conversations with key clients. Warning! GuruFocus has detected 3 Warning Signs with NVDA. Nvidia has told major Chinese customers including Alibaba Group, ByteDance, and Tencent Holdings that new versions of its AI chips are in development and could be available for sampling in June, the report said. CEO Jensen Huang reportedly outlined the redesign strategy during an April trip to Beijing, following a fresh round of U.S. restrictions targeting AI chip exports to China. The company warned in its previous disclosures that the loss of access to China for its H20 chips could cost up to $5.5 billion in revenue. In response, Nvidia is also working on a China-specific adaptation of its Blackwell-generation AI chips, according to the same report. U.S. regulators have intensified export controls on advanced AI semiconductors in recent months, aiming to limit China's access to cutting-edge computing technology. Nvidia had previously designed downgraded chips such as the A800 and H800 to meet earlier compliance thresholds. The continued pivot highlights Chinas significance as a market for Nvidias AI products and the company's strategy to protect long-term revenue despite geopolitical headwinds. Investors will want to watch for June chip sampling updates and progress on Blackwell's regional customization, as the company tries to navigate tightening U.S.-China tech regulations. See insider trades for NVDA. Explore Peter Lynch chart. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Nvidia Stock Crashed on Bad News From Washington. Should Investors Buy the Dip?
Nvidia (NASDAQ: NVDA) shares fell more than 7% on Wednesday morning, after the company disclosed new export restrictions on its artificial intelligence (AI) chips. Specifically, the company must now obtain licenses from the U.S. government to sell its H20 processors in China. However, Nvidia doesn't expect those licenses to be forthcoming. The company plans to take a $5.5 billion charge related to "H20 products for inventory, purchase commitments, and related services" in the first quarter of fiscal 2026 (which ends April 27), according to a regulatory filing. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Nvidia stock now has plummeted 30% from the record high it reached in January. Should investors buy the dip? Nvidia has been navigating export restrictions in China for several years. In 2022, the Biden administration prohibited the company from selling its most powerful artificial intelligence (AI) accelerators, A100 and H100 graphics processing units ( GPUs), to Chinese businesses due to concerns about their military applications. Nvidia responded by tweaking its A100 and H100 architectures to build less powerful chips that complied with export requirements. Those processors, called A800 and H800, were adopted by several Chinese technology companies, including Alibaba, Baidu, and Tencent. However, in 2023, the Biden administration restricted the sale of those processors in China. Next, Nvidia developed an even less powerful Hopper GPU called the H20 that complied with latest export curbs, but the Trump administration has now effectively prohibited the sale of those processors in China, too. In total, Bloomberg Intelligence estimates that the latest restrictions will cost the company between $14 billion and $18 billion in revenue in fiscal 2026. While Nvidia has reported exceptional financial results since the generative AI boom began in late 2022, export restrictions have still taken a severe toll. China accounted for over 26% of total revenue in fiscal 2022 but just 13% of total revenue in fiscal 2025. Put differently, total sales increased at 69% annually during that period, but revenue from China increased at just 34% annually. Nvidia announced the H20 export controls on April 15 in a regulatory filing that told investors the licensing requirements will remain effective "for the indefinite future." Several analysts subsequently revised their target prices lower on April 16, as detailed below: Vivek Arya at Bank of America cut his forecast to $160 per share, down from $200. Harsh Kumar at Piper Sandler cut his forecast to $150 per share, down from $175. Srini Pajjuri at Raymond James cut his forecast to $150 per share, down from $170. However, several analysts maintained their target prices despite the latest export controls, including those at Cantor Fitzgerald, Evercore, and Wedbush. Likewise, Joseph Moore at Morgan Stanley reiterated Nvidia as his "top pick" in the semiconductor space. In total, the median target price declined from $175 per share to $170 per share, but that still implies 63% upside from its current share price of $104. Dan Ives at Wedbush urged investors to "look past the chaos." He believes Nvidia is the only chipmaker in the world that can supply the processors required to run the most advanced artificial intelligence applications. He said the financial impact would be "relatively small," but acknowledged the restrications are still a strategic blow for the company. More analysts may lower their forecasts in the coming days, but the average estimate currently calls for Nvidia's earnings to increase 51% in fiscal 2026. That consensus makes the current valuation of 35 times earnings look cheap. Patient investors should consider buying a small position in Nvidia stock now. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $526,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $687,684!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 156% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 14, 2025 Bank of America is an advertising partner of Motley Fool Money. Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends Baidu, Bank of America, Nvidia, and Tencent. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy. Nvidia Stock Crashed on Bad News From Washington. Should Investors Buy the Dip? was originally published by The Motley Fool
Yahoo
16-04-2025
- Business
- Yahoo
Nvidia stock dives after chipmaker discloses $5.5 billion hit from 'surprise' China chip controls
Nvidia (NVDA) stock sank as much as 6.9% premarket Wednesday after the AI chipmaker disclosed that it would take a $5.5 billion hit from the US government's surprise new controls on its semiconductor exports to China. Nvidia said in a regulatory filing late Tuesday night that the US government informed the company that it would require a special license for exports of its H20 chips made specifically for the Chinese market. Notably, no licenses for GPU shipments into China have ever been granted given the US government's concern that the chips could be used to build AI supercomputers in the country. Jefferies analyst Blayne Curtis wrote in an analysis following the news the latest rule is effectively a ban. Other Wall Street analysts noted the move was a 'surprise,' given a recent report from NPR that the Trump administration had backed off its plans to restrict Nvidia's H20 chips following a dinner with CEO Jensen Huang at Mar-a-Lago. Nvidia said it will incur $5.5 billion in charges in its first quarter from the latest curb. Jefferies' Curtis projected the company will take an even bigger hit to revenue — $10 billion in lost sales — over the coming quarters. That's because Curtis said the majority of the writedown is related to finished or partially finished goods, rather than future supply agreements, meaning Nvidia will essentially have to toss out billions worth of now-unsellable chips rather than simply canceling future orders. "Banning the H20 makes little sense to us," wrote Bernstein analyst Stacy Rasgon in a note to investors early Wednesday. "H20 performance is low, well below already-available Chinese alternatives; a ban essentially simply hands the Chinese AI market over to Huawei." Raymond James analyst Ed Mills wrote in his own note: "The restrictions on H20 chips comes as a surprise, given explicit approval of the product by the Biden administration and recent media reports that the U.S. government was walking back from banning the product." Nvidia has made multiple specialized chips for China since 2022 — the A800, H800, L20, L2 and the H800's successor H20 — to comply with ever-changing trade rules as the US looks to restrict China's access to hardware necessary to innovate AI. China accounted for $17 billion, or 13%, of Nvidia's revenue in its fiscal year 2025, Rasgon noted. For context, Chinese AI startup DeepSeek said it used roughly 2,000 of Nvidia's now-banned H800 chips to train its latest artificial intelligence model — a much cheaper feat than OpenAI's training requirements. DeepSeek's announcement roiled US markets earlier this year. 'While this is a clear negative, it could be potentially offset by an altering or withdrawal of the country caps on Nvidia chips set to go into effect on May 15,' Raymond James' Mills wrote. Mills was referring to the US' AI Diffusion rule issued by the Biden administration in its final days in January. Nvidia has called on the US government to change what it called a 'misguided' set of restrictions. The White House declined to answer Yahoo Finance's question over whether it is looking to change or revoke the AI Diffusion rule, but Republican lawmakers sent a letter to Commerce Secretary Howard Lutnick made public Tuesday asking him to toss out the rule. News of the new curbs on Nvidia H20 chips comes two days after the chipmaker said it will produce up to $500 billion of AI infrastructure in the US within the next four years as the tech industry looks to bolster its domestic manufacturing footprint in the face of Trump's aggressive approach to trade policy. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at
South China Morning Post
16-03-2025
- Business
- South China Morning Post
Chip war: Chinese start-up aims to break Nvidia's grip on AI with new model framework
A new artificial intelligence (AI) framework developed by teams associated with China's Tsinghua University is said to be able to reduce reliance on Nvidia chips for AI model inference, marking the latest effort by the country to enhance technological self-sufficiency. Advertisement Chitu, a high-performance inference framework for large language models (LLMs), can operate on chips made in China, challenging the dominance of Nvidia's Hopper series graphics processing units (GPUs) in supporting certain models, such as DeepSeek-R1 , according to a joint statement by start-up and a team led by computer science professor Zhai Jidong at Tsinghua University on Friday. AI frameworks serve as the building blocks of sophisticated, intelligent AI models, offering a collection of libraries and tools that enable developers to design, train and validate complex models efficiently. The Chitu framework, which has been open-sourced since Friday, supports mainstream models, including those from DeepSeek and Meta Platforms' Llama series, according to the company. When tested with the full-strength version of DeepSeek-R1 using Nvidia's A800 GPUs, the framework achieved a 315 per cent increase in model inference speed while reducing GPU usage by 50 per cent compared to foreign open-source frameworks, the company said. 05:00 Does the arrival of China's low-cost DeepSeek mean the end of Nvidia's chip dominance? Does the arrival of China's low-cost DeepSeek mean the end of Nvidia's chip dominance? The initiative is part of a broader effort by Chinese AI companies to lessen dependence on Nvidia, whose high-performance GPUs are subject to US export controls. Nvidia is banned by Washington from selling its advanced H100 and H800 chips from the Hopper series to China-based clients.
Yahoo
25-02-2025
- Business
- Yahoo
Trump's US government shake-up hits agency enforcing export controls aimed at China
The indiscriminate shake-up of the US government under President Donald Trump has made headlines for affecting everything from nuclear weapons safety to programmes that fight diseases worldwide. Lost in the headlines about these ruptures is a small corner of the federal bureaucracy that might seem inconsequential by comparison. Yet the work of the US Department of Commerce agency responsible for enforcing export control regulations - the Bureau of Industry and Security - carries implications for America's global trade in what is arguably the country's most important products, including Nvidia's A800 and H800 and Intel's HL-328 and HL-388 AI chips for China. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. And amid reverberations in the global hi-tech sector following AI breakthroughs by Chinese start-up DeepSeek and talk of a possible major deal with Beijing, the BIS is undergoing significant personnel and policy changes under the Trump administration. Earlier this month, the BIS unexpectedly paused processing applications for export licenses filed after February 5, without official notification or guidance, according to people familiar with the matter. The hold appeared last week to have ended, as some applicants began receiving licenses amid backlogs. Neither the BIS nor the Commerce Department immediately responded to requests for comment. Export-control and compliance experts pointed to Trump's America-first trade policy memorandum as a potential reason for the freeze. However, some analysts also blamed it on the upheaval across various government agencies, exacerbated by Trump special adviser Elon Musk's rapid push to cut the federal workforce and budget. Signed on January 20, the first day of Trump's second term, the memorandum instructed the Commerce and State Departments to review the US export-control system. It called for assessments and recommendations to maintain America's tech leadership and close "loopholes" in existing export controls. Olga Torres, a trade and national security regulatory lawyer, said the temporary halt could be tied to the memo because BIS was reviewing its export controls "to ensure policy alignment with the new administration". The review ordered by Trump could determine "whether they're going to target more dual-use items, expand the list or change the controls on China", she added. Describing the Trump administration as "pro-business", Torres explained that "if you're a European buyer, for example, and you know your vendor in the US is going to have to get licenses and you know you're hearing that they're not shipping or that there could be delays, that uncertainty will definitely impact businesses". Others speculated that the review could lead to even stricter restrictions on sales to China, given the new leadership at the Commerce and State Departments. US President Donald Trump with US Commerce Secretary Howard Lutnick on Friday. Photo: AFP alt=US President Donald Trump with US Commerce Secretary Howard Lutnick on Friday. Photo: AFP> An analysis by Akin Gump, a Washington-based law firm, said the review "may lead to more robust administration and enforcement of export controls, particularly in the context of activities related to the export of advanced technologies to China". Howard Lutnick, the new US commerce secretary, called for empowering BIS "with tariffs to enforce strict policies" in relation to threats from tech transfers to China and called for export controls to be "backed by tariffs" to have full effect. The Akin Gump paper also noted Landon Heid's nomination to serve as BIS assistant secretary of export administration. A China hawk, Heid played a key role in shaping tougher positions on export controls targeting China at both the State Department and the House Select Committee on China from 2022 to 2024. While still a US senator last year, Marco Rubio, now US secretary of state, urged then-commerce secretary Gina Raimondo to implement a blanket "presumption of denial" for export-license applications involving critical technology bound for Chinese entities. "Any serious effort to deny America's adversaries access to powerful technologies mandates an unwavering export regime," Rubio wrote in a letter to Raimondo. Last month, concerns were raised about the effectiveness of former US president Joe Biden's export-control measures on advanced computing chips, which had been enacted in preceding years. The unease intensified after DeepSeek unveiled open-source large-language models, claiming they were trained with only a fraction of the computing power required for some of the leading US-made LLMs. In recent years, Republican lawmakers have criticised the BIS for failing to prevent sensitive exports to China, especially in allowing case-by-case sales to Chinese firms. After Biden imposed a ban on high-end chip sales to Chinese companies in 2022, American semiconductor giants developed less advanced alternatives to retain access to one of their largest markets. Following Trump's inauguration last month, several politically appointed senior staffers have also left the agency. These positions are expected to be filled eventually following Lutnick's confirmation last week. The new administration has dismissed Matthew Borman, a senior official responsible for overseeing export restrictions on China, according to a Reuters report. Throughout more than a decade of service, Borman played a key role in implementing initiatives aimed at limiting Beijing's access to advanced chips, during Trump's first term and the Biden administration. "You simply cannot replace the expertise and institutional knowledge of someone like Matt Borman," said Scott Jones of the Stimson Centre, a Washington-based think tank. Eileen Albanese, who directed the Office of National Security and Technology Transfer Controls at BIS, was also forced to leave the agency, Politico and Reuters reported, citing sources. With a career spanning nearly three decades, Albanese managed the processing of licenses for semiconductors and other items subject to national-security controls under both Republican and Democratic administrations. Jones did not rule out a loosening of restrictions on tech exports to China as part of a grand deal that some analysts expect Trump to try to strike with Beijing, against the wishes of China hawks. "The entire federal government, arguably, is in a state of disarray and uncertainty," he added. Citing the firing and then rehiring of nearly 180 workers at the National Nuclear Security Administration, Jones believed that even agencies involved in national security were not immune to the tumultuous approach to policy. "I think Commerce is just kind of a victim, not a target, of this chaos," he continued, saying "the White House is announcing its intention to reach an accommodation with the Chinese on a range of trade-related issues". The two issues of interest to Beijing were tariffs and a removal of tech controls, he added. Jones said he would not be surprised "if we heard from the Trump administration that they would be exploring a loosening of technology controls to the Chinese, which will create an interesting dynamic with what we call the China hawks on Capitol Hill". He noted that US Treasury Secretary Scott Bessent recently stated that Russia could win some sanctions relief in negotiations to end the Ukraine war. "I really can't emphasise enough what an unusual set of circumstances we're facing right now," Jones said. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.
