Nvidia has warned that it expects “significant revenue losses” due to U.S. export controls on chip sales to China.
In a regulatory filing on the 16th, Nvidia stated, “The U.S. government’s restrictions on H20 exports to China are expected to result in a quarterly loss of $5.5 billion.”
The U.S. government had notified Nvidia on the 9th that it would require an export license to ship the H20 chip to China and certain other countries.
The H20 is a downgraded AI semiconductor designed by Nvidia specifically for the Chinese market, in compliance with U.S. export controls on cutting-edge chips. Since 2022, the U.S. has banned Nvidia from selling its most advanced chips to China over concerns that Beijing could use the technology to bolster its military capabilities.
News of the H20 export restrictions has weighed on Nvidia’s stock, which fell more than 5% in after-hours trading.
For Nvidia, China is its fourth-largest market, following the U.S., Taiwan, and Singapore. Last year, the company generated $17 billion in revenue from China, accounting for 13% of its total sales.
