Nvidia Projects $8 Billion Revenue Loss from H20 Chip Export Restrictions
Nvidia's Q1 2026 earnings reveal a significant impact from US export restrictions on its H20 AI chip. The company reported a $4.5 billion charge due to licensing requirements affecting sales to China. An additional $2.5 billion in potential H20 revenue was also lost due to the restrictions.
This follows Nvidia's earlier projection of a $5.5 billion impact related to the licensing requirements announced in April.
Looking ahead, Nvidia anticipates an $8 billion hit to its Q2 revenue, which is expected to be around $45 billion. This represents a substantial portion of the company's projected earnings.
Nvidia Opposes Export Restrictions
Nvidia has publicly opposed the US government's restrictions on AI chip exports to China. The company previously criticized the initial restrictions and welcomed the rescission of a related rule that would have further limited exports.
Despite some rules being rolled back, the current licensing requirements continue to significantly impact Nvidia's business.
For more details on Nvidia's Q1 earnings and the impact of export restrictions, please refer to their official financial report.
