Nvidia (NASDAQ:NVDA) has informed Chinese customers of a delay in launching its new artificial intelligence chip, the H20, designed to comply with U.S. export rules.
Shares in the chipmaker declined 2.2% in pre-market Friday trade.
Originally expected in November, the launch has been pushed to the first quarter of next year due to integration issues with server manufacturers, according to Reuters.
The H20 is the most powerful among three China-focused chips developed by Nvidia to navigate U.S. export restrictions.
The delay may complicate Nvidia's efforts to maintain market share in China against local competitors like Huawei, the report added.
The L20, another chip in development, is reportedly not facing delays and will launch as scheduled.