What's Going On With Nvidia Stock Wednesday?

Nvidia Corp's NVDA CEO, Jensen Huang, announced that the company is working closely with the U.S. government to ensure its new chips for the Chinese market comply with recent export restrictions. Nvidia, a leading artificial intelligence chip designer, holds over 90% of China's $7 billion AI chip market. However, U.S. curbs on chip exports will likely open doors for Chinese competitors, Reuters reports.

Nvidia informed its Chinese customers about delaying a new China-focused AI chip launch until early next year. He emphasized Nvidia's ongoing efforts to develop products adhering to U.S. regulations, mentioning that a new product line complying with these rules is in progress.

Huang acknowledged the challenges posed by competitors like Huawei Technologies Co and mentioned the potential impact of U.S. rules on Nvidia's sales in China, which traditionally contribute about 20% to the company's revenue. 

Despite the challenges of U.S.-China trade tensions, Nvidia continues to serve Chinese customers, including in Singapore, where sales to local customers, including Chinese firms, contributed about 15% of Nvidia's revenue in the recent quarter, Bloomberg reports.

He also discussed Nvidia's ongoing discussions with Singapore regarding significant investments and collaboration to develop Singapore's large language model, Sealion, as part of a $70 million initiative by Singapore's Infocomm Media Development Authority. 

Huang highlighted Singapore's dynamic AI ecosystem and its significance as Asia's central data center hub.

Meanwhile, Nvidia looks to boost Japan's AI capabilities by building an AI tech ecosystem and partnering with local research organizations, companies, and startups. 

Huang announced plans to establish an AI research lab in Japan, invest in startups, and promote AI education. NVDA stock has gained over 225% year-to-date.

Price Action: NVDA shares traded higher by 1.09% at $470.2 premarket on the last check Wednesday.