NVIDIA EARNINGS TO REVEAL HIT FROM US EXPORT CURBS ON CHINA – A move expected to cost $5.5 billion
Nvidia investors will seek clarity on the impact of U.S. chip export curbs to China when the company reports earnings today, amid signs that other regulatory changes could open new markets.
Last month, the Trump administration restricted exports of Nvidia’s H20 chip to China—a move expected to cost the company $5.5 billion.
CEO Jensen Huang said Nvidia had abandoned $15 billion in Chinese sales due to the curbs, though he estimates the country’s AI chip market could be worth $50 billion next year.
China accounted for 13% of Nvidia’s revenue in 2023, but the firm doesn’t break out sales for the H20, the only AI chip previously permitted for export.
Wedbush analysts say the key question is how the restrictions have affected Nvidia’s global demand and outlook. According to sources, Nvidia may launch a new China-specific chip based on its latest Blackwell architecture. Still, the uncertainty has weighed on its share price, which is down 2% this year after soaring nearly threefold in 2023.
Nvidia is forecast to post a 66.2% rise in Q1 revenue to $43.28 billion. Huang recently criticised the U.S. export controls, saying they’ve accelerated chip development by Chinese firms like Huawei.
