As Nvidia stories earnings for the primary quarter of its fiscal yr 2026, which closed on April 28, the corporate has launched numbers on how the Trump administration’s latest chip export restrictions are affecting enterprise.
Nvidia reported that it incurred a $4.5 billion charge in Q1 as a result of licensing necessities impacting its skill to promote its H20 AI chip to firms in China. The chipmaker additionally reported that it was unable to ship a further $2.5 billion of H20 income within the quarter because of the restrictions.
When the U.S. licensing requirement was initially introduced in April, the corporate mentioned that it anticipated $5.5 billion in associated expenses for Q1.
Nvidia additionally mentioned Wednesday that the H20 licensing necessities will lead to an $8 billion hit to the corporate’s income in Q2, which is predicted to be round $45 billion — a big toll.
The corporate has been outspoken towards the Trump administration’s push to restrict the export of U.S.-made AI chips to nations together with China. Huang praised the administration’s latest resolution to scrap Joe Biden’s Synthetic Intelligence Diffusion Rule that might have imposed additional chip export restrictions.
Regardless of Biden’s chip export guidelines not coming to bear, Nvidia is clearly not resistant to the Trump administration’s try and stifle China’s AI market.
TechCrunch will replace this story as we be taught extra.
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