What's Going On With Nvidia Stock Friday?

Artificial intelligence kingpin Nvidia Corp NVDA has reportedly postponed the launch of its new artificial intelligence chip, the H20, in China. Originally expected to debut as early as November 16, the release is likely for the first quarter of the following year, potentially around February or March. 

Also Read: Nvidia Expected To Thrive Amid Challenges: Analyst Predicts Solid Results, High Demand For AI GPUs

This delay is due to server manufacturers' challenges integrating the chip, Reuters reports. Thanks to the AI frenzy, Nvidia made $6 billion in profit earlier this year.

The H20 chip is the most advanced among three China-specific chips Nvidia developed to adhere to recent U.S. export restrictions. U.S.'s latest embargo on China has barred Nvidia from shipping its high-end A800 and H800 AI chips to China, leading the company to introduce these new models as alternatives for Chinese customers. The H20 and the other two chips, the L20 and L2, retain most of Nvidia's latest AI features but have reduced computing power to comply with U.S. regulations, as per the report.

While the L20 is reportedly on track for its planned launch, there is no clear information regarding the status of the L2 chip. The delay of the H20 could impact Nvidia's efforts to maintain its market share in China, especially against local competitors like Huawei Technologies Co. 

Price Action: NVDA shares traded lower by 2.21% at $476.21 premarket Friday.