Nvidia is poised to report $6.2 billion in revenue from China for its fiscal first quarter, making up over 14% of the chipmaker’s total revenue, according to Wall Street consensus tracked by Bloomberg. The quarter, which ended April 27, comes just after the Trump administration enforced a ban on Nvidia’s H20 chip sales to China — a move that could reshape future earnings.
Despite the restrictions, Nvidia’s China sales are expected to surge 150% year-over-year. In comparison, U.S. revenue is forecasted to rise by 60%, reaching $21.6 billion. Overall, analysts project total revenue of $43.3 billion for the quarter.
Nvidia CEO Jensen Huang called the export ban “deeply painful,” revealing the company lost $15 billion in potential sales. The chipmaker is also absorbing a $5.5 billion charge in Q1 from writing down unsellable inventory due to the ban.
“Not only am I losing $5.5 billion… we walked away from $15 billion of sales and around $3 billion in taxes,” Huang said in an interview with Stratechery. He emphasized that China remains a $50 billion market opportunity for Nvidia.
The company’s stock has faced headwinds in 2025, with shares dropping in January amid competition from China’s DeepSeek and again in April as trade tensions rattled markets. However, anticipation builds as Nvidia prepares to report earnings on Wednesday. Investors are optimistic that strong demand for its Blackwell AI chips and a new partnership with Saudi Arabia could boost momentum.
Ahead of the report, Nvidia shares climbed 3% on Tuesday. Options market data suggests the stock could swing up to 7.4% post-earnings.
Bank of America’s Vivek Arya cautioned that the $5.5 billion inventory write-down could drag down Nvidia’s gross margin this quarter. Still, both Arya and Stifel’s Ruben Roy expect Nvidia to slightly surpass Wall Street’s expectations. However, concerns linger over a potentially “messy” second-quarter outlook due to ongoing China restrictions.
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News Source: Finance.yahoo.com
