NVIDIA has released figures on how the Trump administration’s recent CHIP export restrictions are affecting businesses as it reports revenue for the first quarter of 2026, which closed on April 28th.
Nvidia reported that a $4.5 billion bill was raised in the first quarter due to licensing requirements that affect the ability to sell H20 AI chips to Chinese companies. The chipmaker also reported that it was unable to ship an additional $2.5 billion in H20 revenue in the quarter due to restrictions.
When US licensing requirements were first announced in April, the company said it expected to have an associated cost of $5.5 billion in the first quarter.
Nvidia also said Wednesday that the H20 licensing requirements will hit the company’s revenues by $8 billion in second quarter. This is projected to be around $45 billion.
In the company’s first quarter revenue call, CEO Jensen Fan said the company is currently exploring ways to compete in the Chinese AI market, but for now it would need to amortize its H20 chips.
“China is one of the world’s largest AI markets and a springboard for global success, with half of the world’s AI researchers based there. The platform that has won China is in a global leader today,” Huang said. “However, the $50 billion Chinese market is effectively shut down to us. The H20 export ban has ended its Hopper data center business in China. Hopper cannot be further adhered to.”
The company is opposed to the Trump administration’s push to restrict exports of US AI chips, including China. Huang praised the administration’s recent decision to abolish Joe Biden’s artificial intelligence spreading rules.
Despite Biden’s chip export rules not being able to withstand, Nvidia is clearly not immune to the Trump administration’s attempts to curb China’s AI market.
“The question is not whether China has AI or not. It already does,” Huang said. “The question is whether one of the world’s biggest AI markets will run on American platforms. Protecting Chinese chipmakers from US competition is to only strengthen overseas and weaken America’s position.”
This article has been updated to include commentary from Nvidia revenue calls.
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