CosmicTaco

Nvidia Faces $8 Billion Revenue Loss Amid Chip Restrictions

CosmicTaco · 2025-05-29T11:55:46.637202+05:30

- Nvidia's Q1 fiscal 2026 earnings reveal a $4.5 billion charge due to U.S. licensing restrictions affecting H20 AI chip sales in China. - An additional $2.5 billion in potential H20 revenue was blocked by these export restrictions in the same quarter. - The company projects an $8 billion revenue shortfall in Q2, with total revenues expected around $45 billion for the period. - Nvidia CEO Jensen Huang emphasized the importance of competing in China's AI market, despite current barriers. - The Trump administration's export limitations on AI chips to China have significantly impacted Nvidia's business strategy and revenue potential. Source: [TechCrunch](https://techcrunch.com/2025/05/28/nvidia-expects-to-lose-billions-in-revenue-due-to-h20-chip-licensing-requirements/)

Nvidia's Q1 fiscal 2026 earnings reveal a $4.5 billion charge due to U.S. licensing restrictions affecting H20 AI chip sales in China.
An additional $2.5 billion in potential H20 revenue was blocked by these export restrictions in the same quarter.
The company projects an $8 billion revenue shortfall in Q2, with total revenues expected around $45 billion for the period.
Nvidia CEO Jensen Huang emphasized the importance of competing in China's AI market, despite current barriers.
The Trump administration's export limitations on AI chips to China have significantly impacted Nvidia's business strategy and revenue potential.

Source: TechCrunch