Capital Securities News on April 16th, Editor Xiao Xiang) Due to the US government's arbitrary interference and restrictions on H20 chip exports to China, NVIDIA's stock price fell more than 6% after the market closed on Tuesday. At the same time, a group of NVIDIA's Japanese and South Korean suppliers' stocks also fell when the market opened on Wednesday...

NVIDIA released an 8-K filing on the local date of the 15th, stating that it had received notification from the US government that the export of H20 chips and chips with memory bandwidth and interconnect bandwidth, etc., to countries and regions such as China requires a license.

NVIDIA expects that in the first quarter results, the inventory, purchase commitments, and related provisions related to H20 products could be as high as approximately $5.5 billion.

Due to this news, NVIDIA's stock price plummeted more than 6% after the market closed on Tuesday. NVIDIA closed up 1.35% on Tuesday at $112.20.

Invesco Global Market Strategist Tomo Kinoshita said, "The US government's move stems from concerns about China's rise in the electronics sector, and it is expected to have a significant negative impact on the semiconductor supply chain."

During the Biden administration, the United States imposed restrictions on AI chip exports in 2022 to prevent the sale of the most advanced chip products. The H20 chip designed based on NVIDIA's previous generation AI chip architecture Hopper is essentially a "cut-down" product based on H100, aimed at complying with previous US export restriction regulations.

It is reported that the revenue generated by this chip in 2024 is estimated to be between $12 billion and $15 billion. After H100/A100 was banned, it once became NVIDIA's main AI chip for sales in China.

In recent years, NVIDIA has always believed that further regulation of its chips by the US government will suppress competition and may even weaken the global competitiveness of the United States in the technology field.

Notably, as NVIDIA mentioned in the announcement that the US government's relevant license restrictions involve any other chips with the same specifications as H20 memory bandwidth, interconnect bandwidth, etc., industry insiders are also concerned about whether other companies' chips will be affected. AMD's stock also fell more than 7% in after-hours trading on Tuesday.

Among the major Asian suppliers, shares of Japanese test equipment manufacturer Advantest Corp. fell 5.6% at one point during early trading. SK Hynix, a South Korean memory manufacturer, fell 3.7% at one point. TSMC, NVIDIA's largest foundry, fell 2% after hours.

Industry research analyst Ken Hui wrote in a report that due to weak economic prospects, TSMC may have already slowed down the pace of some production expansion. "Stricter regulations on NVIDIA sales may exacerbate this slowdown."

(Capital Securities News Xiao Xiang)

Original source: https://www.toutiao.com/article/7493730652513190435/

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