Home » Nvidia’s sales in China have declined “significantly”.

Nvidia’s sales in China have declined “significantly”.

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Nvidia’s sales in China have declined “significantly”.

Nvidia-CEO Jensen Huang.

I-Hwa Cheng/AFP/Getty Images

Nvidia’s sales rose in all regions except China due to trade restrictions.

The chip giant is now delivering alternatives to the country that do not require a license.

Nvidia reported quarterly sales of $22.1 billion (€20.4 billion), exceeding estimates.

This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.

Nvidia’s data center sales boomed in almost all regions as companies increasingly rely on its chips to build their own AI models. This helped the semiconductor manufacturer achieve quarterly sales of $22.1 billion (20.4 billion euros).

One place where Nvidia hasn’t grown: China, where sales “declined significantly as a result of export control regulations imposed by the U.S. government in October,” said Nvidia’s CFO Colette Kress on the company’s fourth-quarter earnings call.

But Nvidia is still selling alternative versions of its chips that don’t require a U.S. license to export to the country, executives said — and these could help the company enter China later this year “compete”.

In late 2023, the US introduced regulations to restrict the types of semiconductors that can be shipped to China as part of ongoing efforts to impede China’s access to advanced American technology. This has heightened concerns among shareholders about whether Nvidia will be able to maintain its sales in China’s huge AI chip market.

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When Nvidia learned of the restrictions, “we reconfigured our products so that they cannot be hacked through software,” said CEO Jensen Huang at the annual press conference. “So we reset our product offering for China, and now we are sampling to customers.â€

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In January, Nvidia began selling a new gaming processor with fewer features than an earlier model that can be sold in China and still meet U.S. export regulations, Business Insider reported.

And while the company expects performance in the region to remain about the same in this current quarter, “hopefully after that we can compete for our business and do our best,” Huang said.

Read the original article in English here.

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