U.S.Authorities Restrict Shipments of Advanced AMD and NVIDIA Computing Accelerators to China and Russia

The last day of the calendar summer brought unpleasant news to Chinese and Russian AMD and NVIDIA customers.
The U.S.
government just banned both companies from shipping GPU computing gas pedals to those countries that meet certain performance criteria.
In the case of NVIDIA refers to products series A100 and H100, while AMD attributed to the list of \"sanctioned\" Accelerators Instinct MI250.Image source: AMDAccording to AMD representatives, as explained by Reuters, the supply of Accelerators Instinct MI100 did not fall under the ban.
At the same time, AMD believes that the new restrictions will not have a significant impact on the company's business, as trade turnover in this area were not large enough.
NVIDIA shares on the background of this news lost more than 6% in price, in the case of AMD reduction did not exceed 3.8%.
It is believed that the level of performance that determines the need for a ban on the supply of gas pedal in China and Russia, took the speed solution NVIDIA A100 with Ampere architecture.On the idea of American officials, advanced components of American origin should not be used by Chinese and Russian customers to improve military technology.
AMD and NVIDIA computing gas pedals, which are under the ban, can theoretically be used in speech recognition systems for eavesdropping and recognition of military objects in the images of terrain received from reconnaissance satellites.

NVIDIA's third quarter revenue will not exceed $6.5 billion, analysts say

NVIDIA management chose to begin last week by saying the actual second quarter revenue numbers did not match market expectations, with the company refusing to comment publicly on related topics until the full report was published on August 24.
Outside analysts expect that the third quarter in the reporting NVIDIA will not please investors, previously expected the company to receive $7.4 billion in revenue.Source image: NVIDIAAccording to experts at Bank of America, in the third fiscal quarter NVIDIA will get from $6 to $6.5 billion, and scheduled for this period, the announcement of new gaming solutions generation Ada Lovelace not particularly correct the situation.
As you know, in the second quarter, NVIDIA's gaming revenue declined 44% sequentially to $2.04 billion, and triggered by a combination of factors, the crisis of overproduction in the consumer segment, according to the authors of the brief, though deep, but will pass quickly enough.It will clear the stock for the next generation of NVIDIA 5-nm GPUs - both in the gaming and server segments.
In the third quarter, the company in the server segment will probably earn the same amount as in the second - about $3.81 billion, or slightly less, as the dynamics of sales continue to be negatively affected by a shortage of components.
In the future, the demand for server novelties will begin to stimulate the growth of NVIDIA's revenue in this segment.
First, Hopper generation compute gas pedals and Grace CPUs will hit the market.
Secondly, they will be combined with Intel Sapphire Rapids and AMD Genoa CPUs.
Representatives of Bank of America recommend NVIDIA shares for purchase and forecast their price value to rise to $220.
Yesterday's trading session ended at $181.60.

NVIDIA promises to introduce Ampere successor in gaming segment in the second half of the year

Since NVIDIA founder Jensen Huang is very tight-lipped about the timing of new products, one of the few public sources of this type of information remains comments by CFO Colette Kress.
Today she didn't let expectations slip and made it very clear that NVIDIA will introduce a new architecture in gaming segment by the end of the year.Image source: NVIDIAThe interesting thing is that the first remark on this topic during the quarterly conference Mrs.
Kress made on her own initiative, without leading questions from the analysts invited to the event.
In discussing the potential for gaming revenue decline in Q2 on a sequential basis, the CFO explained, \"We are preparing for a transition to a new architecture later this year and expect a sequential decline in gaming revenue in Q2.\" As noted in our previous article on the subject, NVIDIA's gaming revenue might decline 10-20% sequentially in Q2, but year over year growth will still be seen.
Lockdowns in China and events in Ukraine will have a significant impact on such dynamics, but these factors deserve a more detailed discussion in a separate publication.At the same time Colette Kress emphasizes that Ampere is a great architecture, which will continue to be in high demand.
The GeForce RTX 30 family of graphics cards has shown the best sales momentum throughout its lifecycle since it was announced in the fall of 2020.
The PC platform has managed to attract about 100 million new gamers over the past two years, according to Newzoo.
The number of games with RTX support has doubled to 250 titles over the year, and the share of GeForce owners with access to this technology is now approaching one-third, according to NVIDIA itself.The main processes involved in the migration to new graphics architectures for NVIDIA will take place in the second half of the year, as Colette Kress explained.
This should be understood in relation to both the gaming and server segments.
For example, the same Hopper in the server segment will appear as early as the third quarter, but the buildup of shipments of carriers of this architecture will not begin until closer to the end of the calendar year.
\"The bulk of the new product launches will be accompanied by a scaling of shipments in the second half of the year,\" Colette Kress added.