Overview

• Nvidia reported that U.S. officials expect 15% of revenue from licensed H20 sales to China, but said no regulation has codified the requirement.
• The company booked no H20 sales in its second quarter, with China revenue falling to $2.8 billion and representing 5.9% of total revenue.
• A select number of Chinese customers received export licenses, yet regulators in Beijing have advised firms to halt new H20 orders following Commerce Secretary Howard Lutnick’s “addicted” remark.
• Nvidia warned in its SEC filing that any revenue-sharing demand could face constitutional challenges as an effective export levy.
• Executives said H20 revenue could reach $2 billion to $5 billion in Q3 if geopolitical hurdles clear, after earlier disruptions from the April export ban.