Since NVIDIA has reported its first quarter revenue of its fiscal year 2026, which has been closed on April 28, the company has released the number on how the business is being affected by the recent chip export sanctions by the Trump administration.
nvidia Reported that it has been compensated for $ 4.5 billion License requirements in Q1 affect companies in China to sell its H20 AI chip. The chipmaker has also reported that the H20 revenue is unable to send an additional $ 2.5 billion in the quarter due to sanctions.
When the US licensing requirement was actually announced in April, the company He is expected to $ 5.5 billion in related charges For Q1.
The NVDIA also said on Wednesday that the H20 licensing requirements would result in a loss of $ 8 billion to the company’s revenue in Q2, which predicted about $ 45 billion – a major tool.
In the company’s Q1 Income Call, CEO Jensen Huang said the company is currently looking for ways to compete in China’s AI market, but for now, it will have to get a written form for its H20 chips.
“China is one of the largest AI markets in the world and is a springs board for global success with half the world’s researchers, which is in place to guide China globally,” Huang said. “However, the $ 50 billion China market is effectively closed to us. The ban on H20 exports has eliminated our Hopper Data Center business in China. We can’t reduce Hoper to comply with it.”
The company is clearly spoken The Trump administration against pressure to limit the export of US -made AI chips to countries, including China. Huang praised The recent decision of the administration to eliminate the Biden’s artificial intelligence principle This would impose more restrictions on chip.
In spite of it Biden’s chip exports are not tolerating the rulesNVIDIA is clearly not safe from the Trump administration’s attempt to stop China’s AI market.
Huang said, “The question is not whether China will be AI? It is already doing.” “The question is whether one of the world’s largest AI market will run on American platforms. It is only by protecting Chinese chip makers from US competition and weakens US status.”
This piece has been updated to add NVIDIA’s income call interpretation.