(Reuters) -Nvidia’s Chief Financial Officer Colette Kress said the chip company expects no “immediate material impact” from the reported new restrictions on exports of AI chips to China but warned such curbs would harm its business in the future.
Shares of the company are down 2.2%.
The U.S. Commerce Department will stop the shipments of chips made by Nvidia and other chip companies to customers in China as early as July, the Wall Street Journal reported on Tuesday.
“Over the long term, restrictions prohibiting the sale of our datacenter graphic processing units to China, if implemented, would result in a permanent loss of opportunities for the U.S. industry to compete and lead in one of the world’s largest markets and impact on our future business and financial results,” Kress said.
In September, Nvidia had said U.S. officials asked the company to stop exporting two top computing chips for artificial intelligence work to China. Nvidia then started offering a new advanced chip called the A800 in China to meet export control rules.
The new curbs being mulled by the United States would ban the sale of even those chips designed specifically for sale to Chinese customers, without a special U.S. export license, the report added.
(Reporting by Chavi Mehta in Bengaluru; Editing by Krishna Chandra Eluri)
