NVDA Stock Pops on New Chip That Complies With U.S. Export Rules
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Nvidia (NASDAQ:NVDA) stock is climbing higher on Tuesday after the company revealed a new chip that it can export to China.
Regulations from the U.S. Government keep Nvidia from exporting its most advanced chips to the country. To get around this, the company has developed a new advanced chip for export that complies with trade rules.
This new chip is the A800 and Chinese computer companies are starting to advertise the chip. The A800 takes the place of the A100, which was added to the export ban list back in August. It’s a new GPU that the chipmaker started producing in the third quarter of the year.
Specs of the A800
Nvidia is working hard to make sure it doesn’t run afoul of trade rules with its new chip. The A800 is sporting chip-to-chip data transfer rate is 400 gigabytes per second. That’s a significant downgrade from the 600 gigabytes per second that the A100 offers.
The latest chip from Nvidia could go a long way toward decreasing losses from the new trade rules. The company was expecting to see a $400 million drop in chip sales to China in Q3. Investors in NVDA stock will see if that’s true when it releases earnings on Nov. 18, Reuters notes.
NVDA stock is up 2.6% as of Tuesday morning and is down 51.3% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Article printed from InvestorPlace Media, https://investorplace.com/2022/11/nvda-stock-pops-on-new-chip-that-complies-with-u-s-export-rules/.
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