Nvidia (NASDAQ:NVDA) stock is climbing higher on Tuesday after the company revealed a new chip that it can export to China.
Recent regulations from the U.S. government keep Nvidia from exporting its most advanced chips to the country. To get around this, the company has now developed a new advanced chip for export that complies with trade rules.
This new chip is called the A800 and Chinese computer companies are already starting to advertise the chip. The A800 takes the place of the A100, which was added to the export ban list back in August. Nvidia started producing the new A800 graphics processing unit ( ) in the third quarter of 2022.
Specs of the A800
Nvidia is working hard to make sure it doesn’t run afoul of trade rules with this new chip. The A800 is sporting a chip-to-chip data transfer rate of 400 gigabytes per second. That’s a significant downgrade from the 600 gigabytes per second that the A100 offers.
The latest chip from Nvidia could go a long way toward decreasing losses from the new trade rules. The company was expecting to see a $400 million drop in chip sales to China in Q3. Investors in NVDA stock will see if that’s true when it releases earnings later this month, Reuters notes.
NVDA stock is up 2.6% as of Tuesday morning and down 51.3% since the start of the year.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.