Nvidia announces delays and bleak sales outlook for sales in China

Nvidia announces delays and bleak sales outlook for sales in China

At the beginning of November, the giant technology company “Nvidia” announced that it would launch three new graphics cards for sale to China, after the United States banned the sale of the company’s most advanced artificial intelligence cards to Chinese companies.

However, on Friday it became known that one of the new AI chipsets, codenamed H20, was delayed due to problems faced by server manufacturers while integrating the new AI chip into their products. Nvidia stock fell 1.9 percent on Friday after the postponement was announced.

According to CNBC, these delays could be a setback for the tech giant, as the Chinese market accounts for a fifth of Nvidia’s revenue, where they now also face tougher competition from Huawei.

For example, Chinese internet giant Baidu recently placed a large order with Huawei, against the backdrop that upcoming export restrictions imposed on US circuit board manufacturers could put a spoke in Nvidia’s wheels.

Expect a big fall

On Tuesday, Nvidia released quarterly numbers that once again shattered market expectations.

Trading value reached $18.2 billion in the third quarter, an increase of 206 percent compared to the same period last year. Analysts had previously expected its sales to reach $16.2 billion, according to CNBC.

However, Nvidia, through a letter to shareholders, announced that export restrictions affecting sales in China, among other things, will have a negative impact on the numbers in the next quarter.

“We expect sales to these destinations to decline significantly in the fourth quarter, although we believe the decline will be offset by strong growth in other regions,” Nvidia Chief Financial Officer Colette Kress said in a letter to shareholders on Tuesday.

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Hanisi Anenih

Hanisi Anenih

"Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst."

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