Nvidia is reportedly set to generate $12 billion in sales from China this year, despite stringent U.S. export controls. According to a Financial Times report on July 5, Nvidia is expected to sell around one million units of its newly designed H20 chips to Chinese customers. These chips are crafted to comply with export restrictions while still meeting market demand in China.
The U.S. government has restricted American tech companies from selling advanced AI processors to Chinese entities, fearing these technologies could be used for military purposes. Nvidia's CEO Jensen Huang acknowledged during a recent earnings call that these restrictions have increased competition in China. However, he affirmed Nvidia's commitment to serving its Chinese customer base.
Projected sales of $12 billion in China for this fiscal year would surpass Nvidia’s total sales in the region from the previous year. For the fiscal year ending in January 2024, Nvidia reported $10.3 billion in revenue from the Chinese market. In the latest quarter, which concluded on April 28, China contributed 9% to Nvidia's total revenue, down from 22% in the same period the previous year. Despite the lower percentage, net earnings from China rose by 50% year-over-year to $2.5 billion for the quarter.
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| Nvidia's total revenue, including domestic and global sales, surged in the first quarter of the fiscal year, reaching $26.04 billion |
Overall, Nvidia's total revenue, including domestic and global sales, surged in the first quarter of the fiscal year, reaching $26.04 billion, a significant increase from the $7.19 billion recorded in the same period in 2023. The company's profit for the quarter ending April 28 was $14.88 billion, compared to $2.04 billion in the previous year.