While Nvidia publishes a profit for the first quarter of its 2026 fiscal year, which closed on April 28, the company published figures on how recent Chip-Export restrictions from the Trump administration affect business.
Nvidia indicated that he had incurred fees of $ 4.5 billion In the first quarter due to license requirements with an impact on its ability to sell your AI H20 chip to companies in China. The flea manufacturer also said that he was unable to send an additional turnover of H20 $ 2.5 billion during the quarter due to the restrictions.
When the American license requirement was originally announced in April, the company said he expected $ 5.5 billion in related costs For Q1.
NVIDIA also said on Wednesday that H20 license requirements would be of $ 8 billion to the company’s revenue in the second quarter, which is expected to be around $ 45 billion – a large toll.
In the call of the results of the company’s first quarter, CEO Jensen Huang said that the company is currently exploring means to compete in the Chinese AI market, but that for the moment, it must take a radiation for its H20 flea.
“China is one of the largest AI market markets in the world and a springboard to world success with half of the world’s IA researchers based there; the platform that wins China is positioned to lead worldwide today,” said Huang. “However, the Chinese market of $ 50 billion is actually closed to us. The H20 export ban put an end to our Topper data center activity in China. We cannot further reduce the hopper to conform to ourselves. ”
THE The company was frank Against pressure from the Trump administration to limit the export of AI chips manufactured in the United States in countries, including China. Huang praised THE The recent administration’s decision to delete the Joe Biden artificial intelligence rule This would have imposed new restrictions on flea exports.
Despite Biden flea export rules did not comeNvidia is clearly not immune to the Trump administration to stifle the China AI market.
“The question is not whether China will have an AI; it already does it,” said Huang. “The question is whether one of the largest AI markets in the world will work on American platforms. The armor of the manufacturers of Chinese flea of American competition only strengthens them abroad and weaken the position of America.”
This piece was updated to include comments from the Nvidia winning call.
