As Nvidia reports profits for the first quarter of the financial year 2026, which closed on April 28, the company published numbers on how recent Trump’s chip export restrictions affect businesses.
Nvidia reported that she suffered a $ 4.5 billion charge In Q1 because of the licensing requirements that influence its ability to sell H20 AI chip to companies in China. Chipmaker also said that he was unable to transfer additional revenue of $ 2.5 billion in H20 in a quarter due to restrictions.
When the US licensing requirement was initially announced in April, the company said it was expected that $ 5.5 billion was expected in relevant charges for the third quarter.
Nvidia also said Wednesday that H20 licensing claims would lead to $ 8 billion that is hit by the company’s Q2 revenue, which is projected to be about $ 45 billion – a significant tax.
In calling the company’s Q1 profits, Managing Director Jensen Huang said that the company is currently investigating ways to continue competing with China’s AI market, but that, for the time being, it should receive a deletion for H20 chips.
“China is one of the largest AI markets in the world and a worldwide success with half of the AI researchers in the world based there, the platform that wins in China is located to lead worldwide today,” Huang said. “However, the $ 50 billion Chinese market is effectively closed to us.
The company has surpassed Trump’s administration boost to reduce US chip exports to countries, including China. Huang praised The recent decision of the administration to abolish the rule of dissemination of Joe Biden’s artificial intelligence, which would impose further chip export restrictions.
Despite Biden’s chips export rules that do not come to bring, Nvidia is clearly not immunity to Trump’s attempt to stifle the AI market of China.
“The question is not if China will have AI, it is already doing it,” Huang said. “The question is whether one of the largest AI markets in the world will run on US platforms.
This track has been informed to include comments from calling NVIDIA profits.
