Overview

• Nvidia recorded a $2.5 billion revenue shortfall in Q1 and projects an $8 billion hit in Q2 due to the U.S. export ban on its H20 chips.
• The export restrictions forced Nvidia to take a $4.5 billion write-down on unsellable H20 inventory.
• Chinese tech giants including Alibaba, Tencent and Baidu have stockpiled existing Nvidia GPUs while trialing homegrown alternatives like Huawei’s Ascend920.
• U.S. controls have accelerated China’s domestic AI chip development, bringing local designs closer to parity with Nvidia’s products.
• To regain market access, Nvidia plans to launch a downgraded, export-compliant AI chip for China in September.