The U.S. has banned the supply of advanced computing chips to China and Russia - NVIDIA could lose $400 million
The United States has banned AMD and NVIDIA from supplying advanced computing chips to China and Russia. The "red" manufacturer does not believe that this will affect the financial indicators, but the "green" camp has already begun to count the possible losses.
Here's What We Know
Let's start with AMD. Its representatives said that the list of sanctioned products included Instinct MI250 computing chips, while Instinct MI100 did not fall under the ban. AMD believes that the sanctions will not have a negative impact on business due to small trade turnover with Russia and China. But the company's shares still fell - by 3.8%.
It is assumed that the need to ban the supply of top computing chips was determined based on the level of performance of NVIDIA A100 generation Ampere. In the case of NVIDIA, the A100 and H100 series were initially banned. After this information, the stock of the manufacturer has fallen by more than 6%.
NVIDIA said that halting the supply of top computing chips to China and Russia may lead to a loss of 10% of revenue. This is due to the fact that the U.S. company has already signed contracts for $400 million. But NVIDIA immediately promised to apply for an export license, which would allow it to make deliveries despite the sanctions and, as a result, save part of the revenue. The company later said that the authorities allowed it to sell H100 chips.
