All attention to China’s restrictions with NVIDIA’s assignment of Q1 results

Nafidia Seeing a huge growth of sales of graphics processors continues, with the demand for artificial intelligence infrastructure that does not show any signs of cooling.

But for the artificial intelligence maker, the mood is different to the Wednesday’s profit report from what it was in the last quarters. There is one big reason: China.

On April 9, the Trump administration sent a message to NVIDIA, and said it requires a license to export the company’s H20 chip, a copy of its processor from the specially designed of the Chinese market to comply with the restrictions of the previous United States.

It dates back to President Joe Biden’s mandate, and the United States government was concerned that artificial intelligence chips from NVIDIA and other semiconductor companies like Advanced small devices It can be used to create giant computers for the military purposes of opponents.

After the new restrictions, Nvidia said it would take 5.5 billion dollars crossed out On the inventory. Analysts called it the largest deletion in the history of the chips industry. The potential effect on huge future revenues.

“This removal of inventory involves $ 15 billion in revenue from H20 on a 12 -month basis,” wrote David Okonor, an analyst at BNP Paribas, in a report on Tuesday.

For the quarter ending in April, analysts expect NVIDIA to publish 66 % growth in revenue to $ 43.28 billion, according to LSEG. Although this level of growth is much higher than the type of expansion in any of its huge peers in NVIDIA, it represents a sharp slowdown a year ago, when the company is a year ago Record More than 250 % growth.

Because of the new export licensing requirements, there is a lot of uncertainty surrounding expectations for the rest of the year. The average estimate of analysts is expected to grow in the current quarter of 53 %, with a similar number of full fiscal year, which ends in January.

Morgan Stanley analysts wrote in a report on Tuesday that Nafidia faces greater success than expected.

Analysts wrote: “Although our thinking at the time was that this was at least expected by the administration team, it became clear after the ban that the company obtained that the H20 would be fine, and that they were surprised.”

NVIDIA shares wore late after a difficult start for this year, and now rose about 1 % in 2025, while Nasdak decreased by about 1 %.

Earlier this month, CEO of Nvidia Jensen Huang said in Taiwan that NVIDIA used to get 95 % of the market share of graphics processing units in China, but it is it It has been reduced to 50 % Under the restrictions of the chips. In a file with the Securities and Exchange Committee in February, NVIDIA said it recorded $ 17.1 billion of annual sales for customers who have a address in China, including Hong Kong, the fourth largest market in the company.

In recent weeks, Huang has claimed that restricting the export of NVIDIA chips to China will only motivate engineers to reach their own processors, enhancing the ecosystems of the country’s chests and threatening the American technological leadership.

NVIDIA got some good organizational news in May, when the Trump administration announced it was cancellation “The base of artificial intelligence”, which requires more restrictions on exporting artificial intelligence chips to China and other countries. NVIDIA and AMD restrictions.

However, the Trump administration has not completely retracted from organizing NVIDIA exports, saying at the time it is planning a simpler new replacement of the rule of spread.

Morgan Stanley Analysts expect questions about replacement NVIDIA H20 and their plans for China after this week’s profit report. They pointed out that NVIDIA presses the H20 charging licenses, which can be granted Under the current system.

“There is a conversation about what will be ultimately allowed in China – but perhaps not to invite this profit,” they wrote.