Key Points
- Nvidia has received approval from the U.S. government to apply for an export license for H20 chips.
- The loss of the H20 chip sales resulted in $2.5 billion in missed revenue in Q1.
- H20 sales could have accounted for approximately 15% of Nvidia’s total sales.
Nvidia (NASDAQ: NVDA) reported strong Q1 results, but these were impacted by the U.S. government’s revocation of its export license for H20 chips, which caused a loss of $2.5 billion in sales. Prior to this decision, Nvidia had recorded $4.6 billion in H20 sales. The company’s financial outlook appears to be improving, as it has obtained assurances from the U.S. government for a new export license, allowing H20 chips to return to the Chinese market.
Nvidia’s Q1 sales projections for H20 were approximately $7.1 billion, representing a significant portion of its revenue. Although the company expects a 50% year-over-year growth rate to $45 billion in Q2, the missing H20 sales represent a projected $8 billion in lost revenue. If the export restrictions had not been in place, Nvidia’s growth rate could have escalated to 77% for that period.
