During the earnings call for its latest financial results, nvidia revised it has taken
The Artificial Intelligence (AI) Chipmaker Previous downgraded its Hopper Ai Accelerator for the Chinese Market to Comply with Us Export Restrictions. While President Donald Trump Recently Revked The Framework for Artificial Intelligence Difusion From the US Bureau of Industry and Security (BIS), which came into force in April, The Export Regulation Controls on Advanced SemiconduConductors Materially Affected Nvidia ' Accelerator to China.
Nvidia said it incurred a $ 4.5bn charge in the first Quarter of Fiscal 2026 Associated with H20 Excess Inventory and Purchase obligations as the demand for h20 diminished. It said sales of h20 products Wi $ 4.6bn for the first Quarter of Fiscal 2026 Prior to the New Export Licensing Requirements. It said it was unable to ship an additional $ 2.5bn of H20 revenue in the first quarter.
According to a transcript of the earnings call Posted on seeking alphaDenying access to the ai market in china would have a material impact on Nvidia's business. Cfo colllette kress noted that had the expense controls not occurred, Nvidia would have had orders of about $ 8bn for the h20 Ai AI ACCELERATOR HARDWARE.
“Losing access to the China Ai Accelerator Market, which we believe Competitors in China and Worldwide, “She Added.
In her prepared statement, one of kress' remarks appears to have been aimed squarely at the US Administration. She noted that the expense restrictions simply spurred China on to innovate and scale its ai capabilities, adding, adding: “The question is one of the World's Larges
For its first Quarter of 2026, Nvidia posted datacentre revenue of $ 39bn, 73% more than the same Quarter Last Year. Jensen Huang, Founder and Ceo of Nvidia said the company was experience “Incredibly Strong” Demand for Its Ai Acceleration Hardware,
“AI Infererance token Generation has surgged tenfold in just one year, and as ai agents become mainstream, the demand for ai computing will access,” He Said.
Comparing the importance of ai chips to a nation's electricity supply, he added: “Countries Arind the World are recognizing ai as essential infrastructure – Just like Electricity and the Internet – Nvidia stands at the center of this Profound Transformation. “
But Us tarifs may curb demandAccording to Forrester's Senior Analyst Alvin Nguyen: “If trade negotiations are not resolved songs, expect to see tarifs impact demand for ai infrastructure but count slow overall ai demand if uncertainty about product costs linger. “
Given that ai chips are already expensive products, which are set to get More Expensive as Tarifs Take Effect, Nguyen Added: “The Longer It Takes To Negotiate Stable Trade Agreements, The More It Cold Impact Purchasing Decisions from Ai Infrastructure to Ai Infrastructure to AI Infrastructure to Ai Factories Due to the Potential Cost.”