Multiple media reports say that Nvidia (NVDA) is planning to release a new artificial intelligence (A.I.) microchip specifically designed for the Chinese market.
The new A.I. chip would be more powerful than the company’s current H20 model that is permitted to be sold in China.
Nvidia recently agreed to pay 15% of the revenue it generates from A.I. chip sales in China to the U.S. government in order to obtain an export license for the Chinese market.
The Silicon Valley-based chipmaker has had a rocky road in China. Its microchips have been banned for sale to China at various times over U.S. national security concerns.
The administration of U.S. President Donald Trump has allowed Nvidia to sell its older and less powerful H20 chip in China provided the company pays it 15% of the sales proceeds.
However, the China’s government in Beijing has complained about the H20 chip and warned that it might be used by the U.S. to spy on Chinese companies. Nvidia refutes those claims.
Nvidia next reports its financial results on Aug. 27, an event that is likely to move U.S. markets.
Separately, Nvidia disclosed in a regulatory filing that Chief Executive Officer (CEO) Jensen Huang recently sold 150,000 shares in the company worth $27.1 million U.S.
Huang adopted a plan in March of this year to sell six million shares of Nvidia stock. The CEO currently owns 72.8 million shares in a personal account worth $13.25 billion U.S.
NVDA stock is up 32% this year and trading at $182.01 U.S. per share.
