Nvidia shares fell on Friday after the company reportedly delayed the launch of a new artificial intelligence chip for China where it is designed to comply with US export restrictions.
Shares of Nvidia fell about 2.4% in pre-market trading. This follows a Reuters report, citing two sources, which reported that Nvidia told Chinese customers that it would delay the launch of artificial intelligence chips designed to comply with US export regulations until the first quarter of next year.
The new chip, called the H20, was delayed due to problems manufacturers faced in integrating semiconductors into their products. Nvidia has so far not commented on this matter.
In October, the US government tightened export restrictions on artificial intelligence chips for China. The regulations restrict the export of Nvidia's A800 and H800 chips. These semiconductors are also specially designed for China.
Aside from the H20, Nvidia is also gearing up to launch two export-compliant chips called the L20 and L2.
Although Nvidia reported this week that revenue in the September quarter had increased, the company warned that sales in regions affected by export restrictions would cause revenue to decline in the current quarter.
