Nvidia's latest earnings call revealed a significant $4.5 billion write-off, attributed to US export restrictions on advanced semiconductors affecting its H20 AI accelerator sales in China. The company had to downgrade its offerings to comply with regulations, leading to $2.5 billion in unmet sales expectations. CFO Collette Kress highlighted the adverse consequences of losing access to a rapidly growing Chinese AI market, speculating it might lead to increased competition from foreign firms. Despite this, Nvidia reported datacentre revenues of $39 billion in its first quarter of fiscal 2026.
Nvidia reported a $4.5 billion write-off due to US semiconductor export restrictions, significantly limiting its trade and growth potential in the Chinese AI market.
CFO Collette Kress warned that denying access to the Chinese AI market could adversely affect Nvidia, estimating lost orders of about $8 billion.
Kress expressed concern that the restrictions would accelerate China's AI innovation, questioning whether the world's largest AI market will use American technologies.
Nvidia's first quarter of fiscal 2026 showed datacentre revenue at $39 billion, but the export restrictions have notably affected its H20 AI accelerator sales.
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