What's Going On With Nvidia Stock Wednesday?

Zinger Key Points
  • Nvidia faces Biden administration scrutiny over AI accelerator sales to China; must limit export of high-performance AI chips.
  • U.S. tightens GPU performance limits for China, impacting Nvidia; high-end H20 GPU launch delayed due to new regulations.

Nvidia Corp NVDA, apart from expanding its presence across countries, is currently navigating a complex situation regarding its sales of AI accelerators to China due to increasing scrutiny from the Biden administration. 

Commerce Secretary Gina Raimondo, in an interview, clarified that while Nvidia can sell GPUs in China for commercial AI applications, it must refrain from exporting its most advanced, high-performance AI chips, the Register reports.

In October, the U.S. government tightened performance limits on GPUs and AI accelerators sold to China, impacting Nvidia's operations significantly. 

Also Read: AMD Stock Has Gained 14% In The Last 5 Days - What's Going On

In response to these restrictions, Nvidia planned to introduce new GPUs that align with the performance limitations. 

However, the launch of their most powerful model, the H20, has been delayed until the following year. Raimondo has issued warnings against chipmakers testing the limits of export bans, indicating swift regulatory action against such attempts.

This situation places Nvidia and other chipmakers like Intel Corp INTC and Advanced Micro Devices, Inc AMD

in a challenging position. 

Nvidia, renowned for its advanced RTX technologies like DLSS and ray tracing, recently celebrated a milestone with over 500 games and apps incorporating these features. 

To continue this momentum, Nvidia is releasing a new driver, version 546.33, game-ready for The Finals, a newly launched first-person shooter that includes ray tracing, DLSS 3, and Nvidia's Reflex technology, the Verge reports

This update also brings essential fixes, notably addressing intermittent stuttering issues when v-sync was enabled.

Price Action: NVDA shares traded higher by 0.99% at $481.29 on the last check Wednesday.

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