Overview
- Jensen Huang told shareholders on June 24 that Nvidia will prioritize U.S. national security over sales and that the company will not provide support or repairs for hardware moved into restricted markets.
- Nvidia argues advanced AI data centers are integrated systems that need trusted hardware, software, networking, and ongoing updates, so parts obtained through smuggling or diversion will fail at scale without vendor cooperation.
- Federal prosecutors charged the co-founder of Supermicro in March with an alleged $2.5 billion scheme to smuggle Nvidia-equipped servers to China, an indictment that executives cite as evidence of enforcement and evasion risks.
- Nvidia says the U.S. cleared export licenses for its H200 chip last year but the company has not yet booked revenue from those licenses and it is unclear whether Chinese authorities will allow imports.
- The company pointed to rising AI-driven compute demand, a smaller China revenue share of about 9% in fiscal 2026, and a plan to return 50% of free cash flow to investors as it pushes domestic infrastructure and tighter control over its ecosystem.