The Wall Street Journal reported on Tuesday evening that the U.S. was considering new restrictions on exporting artificial intelligence chips to China, which could affect Nvidia (NASDAQ:NVDA), the leader in the market for graphics processors needed to build AI software like ChatGPT.
Nvidia CFO Colette Kress downplayed the effect of the potential export restrictions at a financial conference on Wednesday, saying that they would not have an “immediate financial impact” but that further restrictions could hurt the company’s growth in the future.
Nvidia’s stock started recovering on Kress’ comments before ultimately falling about 1.8% on Wednesday. The company’s shares are up more than 179% so far in 2023.
“We are aware of reports that the U.S. Department of Commerce is considering further controls that may restrict exports of A800 and our H800 products to China,” Kress said, referring to the company’s chips.
“However, given the strength of our demand for our products worldwide, we do not anticipate that such additional restrictions, if adopted, would have an immediate material impact on our financial results.”
Kress said that China accounts for between 20% and 25% of the company’s data center revenue, which totaled $4.28 billion in sales in the first quarter. That includes other chips, not just those used for AI, including networking parts.
NVDA shares dipped 26 cents to $410.91.
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