Nvidia Launches a Reduced-Power Gaming Chip in China to Adhere to New US Export Regulations

Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading teams to deliver impactful news coverage on major global events.

Highlights

• Nvidia has introduced a modified gaming chip in China that aligns with the latest US export restrictions on sensitive technology exports.
• The newly released GeForce RTX 4090D Series GPU features reduced core counts and lower performance compared to last year's model.
• Despite a slight 1% dip in Nvidia's stock on Friday, shares have surged significantly this year driven by strong demand for AI-focused chips, though export limitations have introduced some investor caution.

Nvidia Corporation (NVDA) experienced a minor stock decline on Friday following the launch of a slower gaming GPU in China, created to comply with recent US export control measures targeting technology shipments to the country.

The GeForce RTX 4090D Series GPU, showcased on Nvidia's Chinese website, is promoted as delivering substantial improvements in performance, energy efficiency, and AI-enhanced graphics capabilities, promising an outstanding experience for gamers and creative professionals alike.

However, this variant operates with approximately 5.9% less power consumption and includes fewer processing cores compared to the original RTX 4090 model announced last year.

This development responds directly to the Biden administration's export restrictions on advanced AI chips to China, citing national security concerns. Earlier this month, CEO Jensen Huang confirmed Nvidia's commitment to producing chips that comply with the White House's guidelines.

As a dominant supplier of AI technology chips, Nvidia's stock soared to record highs in May and continued its upward trajectory. Yet, the announcement of US export limitations in October caused some volatility in its share price.

Since then, Nvidia's shares have recovered, maintaining levels near their historic peaks despite the recent slight downturn.

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