Nvidia reported on Wednesday that US export controls blocking the sale of its H20 GPUs to China will lead to an estimated $10.5 billion revenue loss in the first half of fiscal 2026. Following new trade restrictions enacted in April, the company managed to deliver $4.6 billion of its $7.1 billion Q1 shipment target but missed out on $2.5 billion in sales. CEO Jensen Huang warned that while the restrictions limit US presence in the Chinese market, China is advancing its AI capabilities independently. Huang criticized the US trade policy for potentially strengthening Chinese competitors.
Nvidia's export controls blocking sales of H20 GPUs may cost the company $10.5 billion in revenues, with significant losses from the Chinese datacenter market.
Despite export restrictions, Nvidia delivered $4.6 billion of its planned $7.1 billion H20 shipments in Q1 but missed $2.5 billion in sales.
CEO Jensen Huang emphasized that China's AI development will continue regardless of US chip exports, posing a risk to American market dominance.
While Nvidia faces losses, Huang suggested that limiting US competition may inadvertently strengthen Chinese chip makers, undermining American standing in AI.
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