What's Going On With Nvidia Stock Thursday?

Nvidia Corp NVDA has ordered AI processors specifically designed for the Chinese market from Taiwan Semiconductor Manufacturing Company Ltd TSM, requiring a Super Hot Run (SHR) production process. 

The fulfillment of these orders will likely begin in the first quarter of 2024, Digitimes cites industry sources.

Due to increased scrutiny from the Biden administration, Nvidia is dealing with challenges in selling AI accelerators to China. 

Commerce Secretary Gina Raimondo stated that Nvidia could sell GPUs in China for commercial AI purposes but must not export its most advanced AI chips. 

Also Read: 'There Is Only One China': Nvidia Chief Flags Dangers To US Chips Act, Repercussions Of US Tech Embargo On China

Following tightened U.S. government restrictions in October on GPU and AI accelerator performance for sales to China, Nvidia's operations have been significantly affected.

To comply with these restrictions, Nvidia plans to introduce new GPUs that meet the performance limitations. However, the release of their most powerful model, the H20, is postponed until 2024. 

Meanwhile, due to U.S. export restrictions, Chinese chip designers are actively positioning their AI chips as competitors to Nvidia's offerings. These restrictions have allowed companies like Hygon Information Technology, Iluvatar CoreX, and Huawei Technologies to challenge Nvidia's dominance in China's AI chip market.

Nvidia accounts for up to 90% of China's $7 billion AI chip market.

Earlier this year, Nvidia chief Jensen Huang said China made up roughly 33.33% of the U.S. tech industry's market, rendering it impossible to replace.

Price Action: NVDA shares traded higher by 0.91% at $485.25 premarket on the last check Thursday.