Nvidia Corporation is facing significant financial losses due to restrictions imposed by the Trump administration on the export of H20 chips to China. In the first quarter of the 2026 fiscal year, which ended on April 28, the company was unable to sell products worth $4.5 billion due to the supply ban. Additionally, products worth another $2.5 billion could not be sold, according to the manufacturer.
This is reported by Finway
Earlier in April, Nvidia projected losses of $5.5 billion, but in a new report, it clarified this information. According to the company’s estimates, in the second quarter, the restrictions will lead to a further decline in revenue of $8 billion, which will significantly impact the expected revenue of $45 billion.
The Chinese Market is Closed to Nvidia
Nvidia CEO Jensen Huang noted that the company currently sees no opportunities to continue its business in China. H20 chips are written off, and the $50 billion market is effectively closed. Huang emphasized that China remains an important hub for artificial intelligence development, and American companies are losing their positions.
Furthermore, Nvidia criticized initiatives to restrict exports, including the canceled rule by Joe Biden. Huang pointed out that despite some measures not yet being in effect, pressure from the Trump administration is already negatively affecting the company’s position.
“Restrictions only strengthen Chinese manufacturers and weaken the competitiveness of the U.S.”
Impact on Competitiveness
According to Huang, the export licensing policy limits Nvidia’s access to the largest market, making it difficult for the company to compete with local manufacturers in Asia. He also noted that there is already developed artificial intelligence in China, and it is only a matter of whose platform will prove to be dominant.
It is worth mentioning that recently, Huawei announced the creation of an advanced chip to compete with Nvidia in the artificial intelligence market.