Nvidia says China AI chip ban could result in delays, transition of operations

Nvidia Corp.
NVDA,
-3.96%
said late Tuesday a widened U.S. ban on AI tech products to China could delay its current rollout, but did not foresee a meaningful financial impact near term, according to a filing with the Securities and Exchange Commission. Nvidia shares fell 0.8% after hours, following a 4.7% drop in the regular session to close at $439.38. Earlier Tuesday, Nvidia shares dropped as the U.S. expanded restrictions on tech to China. “The licensing requirement may impact the company’s ability to complete development of products in a timely manner, support existing customers of covered products, or supply customers of covered products outside the impacted regions, and may require the company to transition certain operations out of one or more of the identified countries,” Nvidia said in the filing, and backed up an earlier statement about a material risk. “Given the strength of demand for our products worldwide, we do not anticipate that the additional restrictions will have a near-term meaningful impact on our financial results,” the company said.