Nvidia Corporation (NASDAQ:NVDA) has launched a China-specific version of its RTX 5090graphics card, the RTX 5090D.
What Happened: The RTX 5090D has been designed to meet U.S. trade sanctions, resulting in about a 29% decrease in AI performance compared to the global RTX 5090 model.
The AI TOPS has been reduced from 3,352 to 2,375. Despite this reduction, the RTX 5090D maintains most of the specifications of its international counterpart.
Why It Matters: Last year in September, Nvidia CEO Jensen Huang addressed the challenges posed by U.S. sanctions on China. He said, "Nvidia is an American company, and our government and the administration would love to see us succeed."
The restrictions aim to block China from leveraging advanced AI chips for military applications, which pose potential national security concerns.
However, these measures have also complicated Nvidia’s ability to sell its high-performance chips in China—a key market that accounted for about 17% of its fiscal 2024 revenue.
Nvidia’s stock experienced a 6% drop after hitting all-time highs on Tuesday, following product announcements at CES 2025. During the event, Huang also unveiled a collaboration with Toyota to integrate its Orin chips into advanced driver-assistance systems.
Price Action: Nvidia’s stock dropped 6.22% on Tuesday, closing at $140.14. However, it rebounded in after-hours trading, rising 1.04% to $141.60, as per data from Benzinga Pro.