Nvidia reported on the company's performance for the first quarter of 2025. The report also released data on how recent restrictions on chip exports imposed by the Trump administration have already affected the business, and what losses are expected.
Nvidia reported on the company's performance for the first quarter of 2025. The report also released data on how recent restrictions on chip exports imposed by the Trump administration have already affected the business, and what losses are expected.
Nvidia said it suffered a $4.5 billion loss in the first quarter due to licensing requirements affecting its ability to sell its H20 AI chip to companies in China. The company also said it was unable to generate an additional $2.5 billion in revenue from H20 due to the restrictions, TechCrunch reported .
When the US licensing requirement was first announced in April, the company said it expected a $5.5 billion loss in the first quarter. That is, the actual loss due to the restrictions was $1 billion less.
But the losses in the second quarter could be much larger. The company said that licensing requirements for H20 would reduce revenue by $8 billion.
Recall that according to Bloomberg analysts, if the ban remains in force, Nvidia's annual losses could amount to $14–18 billion.
“China is one of the largest AI markets in the world and a springboard for global success, home to half of the world’s AI researchers; the platform that wins in China can become the world leader today,” Huang said. “However, the $50 billion China market is effectively closed to us. The H20 export ban has ended our Hopper data center services business in China. We cannot scale Hopper down any further to meet the requirements.”
However, Nvidia also said that H20 generated $4.6 billion in sales in the first quarter, and that China accounted for 12.5% of total revenue.
