Nvidia’s RTX 5080 24 GB Launch Delayed as Partners Await Design Kits

U.S. tech stocks rebounded on Nov 3, with the Nasdaq up 0.9% and S&P 500 up 0.4%, driven by semiconductor gains. Nvidia and Broadcom rose 2.3% and 3.1%, respectively, while Apple fell 1.9%. AMD reported $13.4B in revenue, beating expectations. Palantir dropped 1.6% despite 96% revenue growth. Oil prices rose due to Middle East tensions. Gold and silver saw minor gains. Investors watched U.S. midterm elections.

AMD forecasts $17 billion in revenue for 2024, slightly above consensus, but expects a gross margin decline to 55%. The company's AI-focused Helios system, which includes high-bandwidth memory, is in production and set to ramp in Q4. Supply constraints and higher costs may impact margins. AMD's focus is shifting to complete systems rather than just chips.

Nvidia has reportedly instructed data center clients to limit Chinese customers to 49% of their business, affecting new contracts globally. This move targets a workaround used by Chinese firms like Alibaba and ByteDance to access Nvidia's AI chips via overseas data centers. The US has restricted sales of advanced Nvidia chips to China since 2022, leading to a decline in Nvidia's market share in China, now at 34% according to IDC.

Nvidia is reportedly limiting Chinese customers to 49% of sales for companies renting its AI chips, according to the Financial Times. The company is communicating this rule verbally to clients, which may restrict Chinese firms' access to U.S. chip power for AI training. Nvidia aims to ensure global data centers use U.S. chips, supporting American AI companies. The rule applies to new contracts worldwide, and Nvidia has a 'white list' to reduce Asian clients by over 50%, per the Financial Times.

Nvidia reportedly ordered data center partners to reduce China exposure, requiring at least 51% of services to be sold to non-Chinese customers. Nvidia did not confirm the report but emphasized the importance of American AI infrastructure. The Chinese Ministry of Foreign Affairs called for a fair business environment. Nvidia is the world's most valuable company, benefiting from the AI-driven demand for data centers.

NVIDIA stock rose 3.0% after CEO Jensen Huang endorsed a $115 billion tech merger and the company issued guidelines on China exposure. Investors viewed these as positive signs for AI demand and regulatory compliance. The Nasdaq and S&P 500 also gained, with analysts maintaining a bullish stance on NVIDIA, which traded at $208.07. The company's next earnings report is scheduled for November 17.