Nvidia, a leading chip maker, is facing restrictions on the export of its artificial-intelligence chips to China. Despite the challenges, the company remains committed to the promising market for its AI processors.
Last month, Nvidia (ticker: NVDA) received notification that it would be subject to immediate licensing restrictions regarding the export of several data-center chips to China. This includes the H800 chip and A800 chips, which were specifically designed for the Chinese market.
However, Nvidia is not backing down. Reports from the Chinese publication the STAR Market Daily suggest that the company is preparing to unveil three new chips for the Chinese market. These chips, named the HGX H20, L20 PCIe, and L2 PCIe, could be officially announced as early as next Thursday.
What makes these new chips particularly interesting is that they are modifications of the highly sought-after H100 chip, which has become the preferred choice among Western companies for AI model training.
Nvidia has yet to provide a comment in response to these reports.
According to Dylan Patel, chief analyst at SemiAnalysis, Nvidia seems to have found a way to navigate the new restrictions with its latest chip offerings. “Nvidia is perfectly straddling the line on peak performance and performance density with these new chips to get them through the new U.S. regulations,” Patel wrote in a blog post.
Despite the initial negative impact of tighter U.S. restrictions on Nvidia’s shares in October, the company has since rebounded and recovered its losses. Moreover, Nvidia has expressed confidence that these limitations will not have any significant short-term financial effects.
In premarket trading on Thursday, Nvidia shares were up by 0.2%.