Nvidia Plans Launch of 2 New AI Chips for Chinese Markets

Business

China’s AI Dominance Intensifies With Nvidia’s Launch of New Chips – Crypto News

Published

1 year ago

February 23, 2024

Dripp

AI giant Nvidia will soon launch new artificial intelligence chips aimed at the China market. According to a report by Reuters, Nvidia is currently planning to press on Chinese markets with additional chip products. The move comes at a time when China is trying to re-establish itself as a dominant player against the US in the AI chip race.

Nvidia to Launch New AI Chip for Chinese Market

CEO Jensen Huang of Nvidia stated that the company is presently providing samples of its two new AI chips to consumers to maintain its market dominance in China. In an interview with Reuters, the CEO of the firm said that the company was currently sampling it for customers. Huang also showed optimism about receiving comments from customers on Nvidia’s quarterly results.

Nvidia is trying to set its foot firm in the Chinese chip market after last year’s actions from the US. Following Washington’s October expansion of export control measures, which included tighter limits on shipments of cutting-edge Nvidia chips to China, Nvidia’s business in China suffered.

US Sanctions on China Pose Issues from Country’s AI Growth

Last year The United States issued sanctions against a few Chinese chip makers. A few in the scrutiny included the Mate 60, a smartphone featuring 5G connectivity and a processor made by Semiconductor Manufacturing International Co. According to CNBC, the goal of US sanctions was primarily to hinder China’s production of the most sophisticated processors in the world as the two countries’ technology rivalry heats up.

However, China has now started gearing up again to position itself as a dominant nation in the AI and Chip race. This includes the biggest companies in the country with SMIC producing cutting-edge chips recently, circumventing US sanctions.

Nvidia’s Results Strengthen AI Growth Outlook

The development in Nvidia’s Chinese relations comes at a time when the company has posted extremely upbeat results. Nvidia posted adjusted profits per share (EPS) of $5.16 on $22.1 billion in revenue for the quarter. Analysts had projected $20.4 billion in revenue and $4.60 in earnings per share. Compared to the same period last quarter, when Nvidia recorded EPS of $0.88 on $6.1 billion, that represents a significant jump. Nvidia’s accomplishment was further highlighted by the company’s $27 billion in revenue for the entire 2022 fiscal year.

In addition, the business gave a first-quarter revenue guidance that was greater than analysts had predicted, estimating $24 billion in revenue, give or take 2%. For the quarter, Wall Street was anticipating $21.9 billion.