Nvidia comes down a bit from its pedestal on the stock market. The title of the manufacturer of electronic components, praised in recent months for its positioning on artificial intelligence, lost more than 2% on Wednesday in New York. This does not prevent the action from almost tripling since the beginning of the year.
The United States plans to impose new restrictions on the export of artificial intelligence chips to China, reports the Wall Street Journal, according to which the Commerce Department will thus interrupt, from July, the deliveries of chips made by Nvidia and other companies to the country. In the wake of Nvidia, Advanced Micro Devices (AMD) also lost 2%.
“Major security risk”
In Asia, the Chinese index of artificial intelligence of the CSI lost 3% this morning following this information, including a fall of 10% for Inspur Electronic Information Industry, in Shenzen. The company mainly produces computers and software. Both Hong Kong-listed and US-listed Alibaba, which launched its own version of the viral chatbot ChatGPT, and Tencent, building its own AI model, also lost ground. Citing sources familiar with the matter, The Wall Street Journal said Washington is increasingly concerned about China’s ability to make technological advancements with AI.
In May, Beijing banned Chinese critical information infrastructure operators from buying Micron Technology products, saying the US memory chip maker poses a “major security risk”. The stock then lost nearly 4% after China ruled that the company’s products did not meet its network security criteria. In a statement, China’s Cyberspace Regulatory Authority (CAC) specifically indicated that Micron will no longer be able to sell to critical infrastructure operators in the country in various sectors, from telecoms to transport. The U.S. government has also reportedly urged South Korea not to allow its domestic chipmakers to fill the vacuum left by the Micron decision in China. Nvidia and AMD were banned in September by Washington from selling their advanced-type chips to China and Hong Kong.
‘Growing’ demand, says Nvidia
Nvidia is the big winner of the “AI first” on the Stock Exchange, yet best known for its computer graphics card business, which is also strongly affected by the current difficulties in the world of video games and whose billings have plunged by some 38 % in one year. What investors have noticed in this dossier is the rise in power of the other division of the group, that dedicated to data centers and whose contribution in turnover has largely exceeded the expectations of the consensus between the February and April, to 4.2 billion dollars, against 3.9 billion anticipated.
This demand, described as “increasing” by the company, is explained by the massive adoption of GPU cards (chip of the graphics card which aims to optimize the rendering of images, 2D or 3D display, or videos ) by cloud providers and designers of generative AI applications like ChatGPT, developed by OpenAI and in which the software giant Microsoft has not hesitated to invest more than 10 billion dollars. ” $1 Trillion Data Processing Infrastructures Will Transition to Accelerated Computing as Enterprises Use Generative AI “, underlined the general manager, Jensen Huang, who anticipates a turnover of 11 billion dollars in the second quarter. This is more than 50% more than the consensus.
2023-06-28 13:55:06
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