Nvidia has launched a slow gaming chip in China that complies with U.S. restrictions on selling certain technologies to the country. The GeForce RTX 4090D graphics processing unit (GPU) has less performance and fewer cores compared to the model Nvidia announced last year. Nvidia’s stock fell 1% on Friday but has risen significantly this year due to demand for AI chips, although U.S. export rules have raised concerns among investors.
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Nvidia (NVDA) shares fell on Friday after the chip manufacturer launched a slow gaming chip in China to comply with new U.S. restrictions on selling technology to the country.
The company released the GeForce RTX 4090D GPU on its Chinese website, stating that it “offers a quantum leap in performance, efficiency, and AI-driven graphics” and an “exceptional experience for gamers and creators.”
However, the chip’s power consumption performance is 5.9% lower compared to the model Nvidia announced last year, and the number of cores has also been reduced.
U.S. Restrictions and Their Impact on Nvidia
This action comes in response to export restrictions imposed by President Joe Biden’s administration on certain advanced AI chips sent to China, citing national security concerns. Earlier this month, the company’s CEO, Jensen Huang, stated that the company would manufacture chips that meet White House standards.
Nvidia has been the leading chipmaker for AI applications, which is reflected in its stock price that reached an all-time high in May and continued to rise. However, the stock faced a setback in October after the company reported that new U.S. government restrictions would take effect immediately and impact its products.
However, the stock has since rebounded, and even with Friday’s decline of over 1%, it is still trading close to its all-time high.
Sources
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Sources: Nvidia. “GeForce RTX 40 Series.” Tom’s Hardware. “Nvidia Launches China-Specific RTX 4090D Dragon GPU, Sanctions-Compliant Model Has Fewer Cores and Lower Power Draw.” Nvidia. “8-K.”
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