Nvidia expects to lose billions in revenue due to H20 chip licensing requirements
As Nvidia reports earnings for the first quarter of its fiscal year 2026, which closed on April 28, the company has released numbers on how the Trump administration’s recent chip export restrictions are affecting business.
Nvidia reported that it incurred a $4.5 billion charge in Q1 due to licensing requirements impacting its ability to sell its H20 AI chip to companies in China. The chipmaker also reported that it was unable to ship an additional $2.5 billion of H20 revenue in the quarter due to the restrictions.
When the U.S. licensing requirement was originally announced in April, the company said that it expected $5.5 billion in related charges for Q1.
Nvidia also said Wednesday that the H20 licensing requirements will result in an $8 billion hit to the company’s revenue in Q2, which is predicted to be around $45 billion — a significant toll.
The company has been outspoken against the Trump administration’s push to limit the export of U.S.-made AI chips to countries including China. Huang praised the administration’s recent decision to scrap Joe Biden’s Artificial Intelligence Diffusion Rule that would have imposed further chip export restrictions.
Despite Biden’s chip export rules not coming to bear, Nvidia is clearly not immune to the Trump administration’s attempt to stifle China’s AI market.
TechCrunch will update this story as we learn more.
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