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Nvidia Corp (NVDA) has reportedly delayed an AI chip that it specifically designed for China. Its shares opened slightly down on Friday.Why did Nvidia delay its H20 chip today?Customers will now have to wait for H20 – the artificial intelligence chip that Nvidia recently announced to adhere to the U.S. export restrictions until the first quarter of 2024.The product is being delayed because server manufacturers are struggling with “integrating the chip”, as per sources who talked to Reuters today on the condition of anonymity.The news arrives only days after Nvidia said its revenue tripled in its fiscal Q3. The California-based company did, however, warn of a hit to sales in its current quarter due to restrictions on export of AI chips to China as Invezz reported here.Wall Street currently has a consensus “buy” rating on $NVDA.Video Length: 00:03:50Analyst says Nvidia could do fine without ChinaNote that Nvidia Corp currently generates about 20% of its overall revenue from China.The semiconductor behemoth recently announced the L20 and L2 as well to comply with export restrictions that the United States further tightened in October. Still, Matthew Bryson – a Wedbush analyst recently told CNBC’s “Squawk on the Street”:
AI is a high growth market. In terms of visibility, next couple of quarters, I think they simply have the demand there with or without China.
Nvidia says U.S. speeded up new export curbs on AI chips https://t.co/3OmiZPX1xY pic.twitter.com/5s2raovWZv
— Reuters (@Reuters) October 24, 2023
Bryson currently has an “outperform” rating on Nvidia stock. His $600 price objective suggests another 25% upside even though shares of the Nasdaq-listed multinational have already more than tripled since the start of 2023.More By This Author:Baidu Stock Price Forecast: Nomura Sees Upside To $145
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