Overview

• Nvidia recorded a $4.5 billion inventory write-down in Q1 due to restrictions on unsellable H20 chips.
• China shipments fell to $5.5 billion in Q1, missing the $6.2 billion consensus and shrinking to 12.5% of overall revenue.
• Management forecasts an additional $8 billion revenue shortfall in Q2 as the H20 export ban fully takes effect.
• CEO Jensen Huang stated that US export controls have effectively locked Nvidia out of the $50 billion China AI market and accelerated Chinese chip development.
• The company is shifting focus to new AI chip architectures and establishing partnerships in Saudi Arabia and the UAE to diversify its business.