NVIDIA expects to lose billions of revenues due to the requirements for H20 chips

Since NVIDIA has its profits for the first quarter of its fiscal year 2026, which was closed on April 28, the company released numbers on how the limitations of exporting recent chips in Trump affect the business.

Nafidia She stated that she incurred a cost of $ 4.5 billion In the first quarter due to licensing requirements that affect its ability to sell the H20 AI chip to companies in China. Chipmaker also reported that he was unable to charge $ 2.5 billion of H20 revenues in the quarter due to restrictions.

When it was originally announced by the US license requirements in April, the company He said he expected 5.5 billion dollars in relevant fees For Q1.

NVIDIA also said on Wednesday that the requirements for the H20 license will lead to an increase of 8 billion dollars to the company’s revenues in the second quarter, which is expected to reach about $ 45 billion – which is a great loss.

In the company’s profit call in the first quarter, CEO Jensen Huang said that the company is currently exploring ways to compete in the artificial intelligence market in China, but at the present time, it should take a deletion of the H20 potatoes.

“China is one of the largest markets of artificial intelligence in the world and a starting point for global success with half of the world’s artificial intelligence researchers there; China’s winning platform is in the global position today,” Huang said. “However, the China market of $ 50 billion is actually closed to us. The H20 export ban has ended our data center in China.

the The company was frank Against the Trump administration batch to limit the export of artificial intelligence chips in the United States to countries, including China. Huang praised the The recent administration’s decision to cancel the base of spreading artificial intelligence for Jo Biden He would have imposed more restrictions on chips.

Although Biden’s bases do not come to exportIt is clear that NVIDIA is not immune to the Trump administration’s attempt to strangle the artificial intelligence market in China.

“The question is not whether China will get artificial intelligence, it’s indeed,” Huang said. “The question is whether one of the largest markets of artificial intelligence in the world will work on American platforms. Chinese chips make from the American competition only strengthens them abroad and weakens the position of America.”

This piece has been updated to include a suspension from NVIDIA’s profit call.