CNBC Investing Club

Nvidia's new chip to address U.S. export rules to China should help blunt lost sales risk

Nvidia headquarters in Santa Clara, California, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images

Shares of Nvidia (NVDA) were getting a bump higher Tuesday after the company confirmed it has developed a new chip, designed specifically to address the U.S. government's concerns about possible Chinese military applications for its A100, a powerful graphics processing unit that can be used to run artificial intelligence. We view the news as a step in the right direction toward mitigating lost sales in China.