Nvidia Excludes China from Data Center Sales Forecast Ahead of U.S.-China Summit
In late August, Nvidia (NVDA) forecast $108.0 billion in revenue for its fiscal third quarter without assuming any data center compute sales to China. This exclusion is significant because the AI chip market drives most of Nvidia's growth and previously accounted for a large portion of its business with Chinese customers. Despite recent U.S.-issued licenses allowing limited shipments, H200 chip deliveries remain minimal due to restrictions from both governments. The upcoming Sept. 24 summit between President Donald Trump and Chinese President Xi Jinping may influence future export rules on AI chips. While easing these controls is seen as a difficult task for negotiators, the event could still impact Nvidia's access to China’s market. Currently, only a fraction of permitted shipments have occurred due to inspections and tariffs that reduce competitiveness. Nvidia has faced financial setbacks from its limited presence in China, including $4.5 billion in charges when H20 chip exports were restricted earlier this year and an additional $400 million charge for excess inventory.
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Topics: AI China_relations data_center_sales export_restrictions