Nvidia shares hammered as US restricts some China exports

Shares of Nvidia plunged Thursday after the chip company disclosed that the US government restricted exports of processing equipment to China and Russia to prevent their militaries from using them.

Nvidia was down nearly 11 per cent at $134.59 in afternoon trading following the US securities filing outlining the restrictions.

US officials on August 26 informed Nvidia that the restrictions affected exports of A100 and forthcoming H100 circuits to China -- including Hong Kong -- and Russia.

Regulators told the company that new license requirements were needed "to address the risk that the covered products may be used in, or diverted to, 'a military end use' or 'military end user' in China and Russia," Nvidia said in the filing.

The rules "may impact the company's ability to complete its development of H100 in a timely manner or support existing customers of A100 and may require the company to transition certain operations out of China," said the filing.

"The company is engaged with the (US government) and is seeking exemptions for the company's internal development and support activities."

Nvidia said it does not sell products to customers in Russia.

In a second securities filing Thursday, Nvidia said it won authorization from the US to develop H100 circuits in China and had received approval to export the A100 to US customers through March 1, 2023.

Washington also OKed unfulfillment of orders at the company's Hong Kong facility through September 1, 2023, the filing said.

"We are working with our customers in China to satisfy their planned or future purchases with alternative products and may seek licenses where replacements aren't sufficient," a Nvidia spokesperson said. Commerce Department officials did not immediately respond to a request for comment.